Management's Discussion and Analysis
Contractual Obligations and Commercial Commitments
The following table reflects a summary of our contractual obligations and commercial commitments as of November 30, 2005:
Contractual Cash Obligations Due by Year
|
| (millions) |
Total
|
Less
than
1 year
|
1-3
years
|
3-5
years
|
More
than
5 years
|
| Short-term borrowings |
$ |
105.4 |
$ |
105.4 |
|
- |
|
- |
|
- |
| Long-term debt(a) |
|
464.6 |
|
.7 |
$ |
150.6 |
$ |
62.4 |
$ |
250.9 |
| Operating leases |
|
60.8 |
|
15.1 |
|
22.9 |
|
15.2 |
|
7.6 |
| Interest payments |
|
237.8 |
|
32.3 |
|
51.7 |
|
33.0 |
|
120.8 |
| Raw material purchase obligations(b) |
|
104.3 |
|
104.3 |
|
- |
|
- |
|
- |
| Other purchase obligations(c) |
|
7.5 |
|
7.5 |
|
- |
|
- |
|
- |
| Total contractual cash obligations |
$ |
980.4 |
$ |
265.3 |
$ |
225.2 |
$ |
110.6 |
$ |
379.3 |
(a) $195.9 million of long-term debt due in 2006 was classified in the "More than 5 years" column based on our ability and intent to refinance.
(b) Raw material purchase obligations outstanding as of year-end may not be indicative of outstanding obligations throughout the year due to our response to varying raw material cycles.
(c) Other purchase obligations primarily consist of advertising media commitments.
Note: In 2006, our pension and postretirement funding is expected to be approximately $42 million. Pension and postretirement funding can vary significantly each year due to changes in legislation and our significant assumptions. As a result, we have not presented pension and postretirement funding in the table above.
Commercial Commitments Expiration by Year
|
| (millions) |
Total
|
Less
than
1 year |
1-3
years |
3-5
years |
More
than
5 years |
| Guarantees |
$ |
8.7 |
$ |
7.4 |
$ |
1.3 |
|
- |
- |
| Standby and trade letters of credit |
|
12.2 |
|
12.2 |
|
- |
|
- |
- |
| Lines of credit |
|
512.0 |
|
112.0 |
|
- |
$ |
400.0 |
- |
| Total commercial commitments |
$ |
532.9 |
$ |
131.6 |
$ |
1.3 |
$ |
400.0 |
- |
|
