ADT 2008 Annual Report Download - page 173

of September 26, 2008, no amounts remain outstanding under the 3.125% convertible senior
debentures.
The following tables detail our long-term and short-term debt ratings at September 26, 2008 and
September 28, 2007:
Long-Term Debt Ratings
2008 2007
Moody’s ...................................... Baa1 Baa1
Standard & Poor’s .............................. BBB+ BBB
Fitch ........................................ BBB+ BBB
Short-Term Debt Ratings
2008 2007
Moody’s ...................................... P-2 N/A
Standard & Poor’s .............................. A-2 N/A
Fitch ........................................ F2 N/A
The security ratings set forth above are not a recommendation to buy, sell or hold securities and
may be subject to revision or withdrawal by the assigning rating organization. Each rating should be
evaluated independently of any other rating.
Commitments and Contingencies
Contractual Obligations
Contractual obligations and commitments for principal debt, minimum lease payment obligations
under non-cancelable operating leases and other obligations at September 26, 2008 is as follows ($ in
millions):
2009 2010 2011 2012 2013 Thereafter Total
Debt(1) ........................... $ 648 $ 1 $517 $1,135 $ 1 $1,831 $4,133
Interest payments(2) .................. 225 209 192 148 120 619 1,513
Capital leases(3) ..................... 23 21 22 4 6 43 119
Operating leases .................... 248 201 166 108 61 140 924
Purchase obligations(4) ................ 53 3 — — — — 56
Total contractual cash obligations(5)(6) ..... $1,197 $435 $897 $1,395 $188 $2,633 $6,745
(1) Excludes debt discount and swap activity. Includes amounts outstanding under our revolving credit facilities. Included in the
amount of debt maturing in 2009 is $116 million of commercial paper borrowings the Company classified as long-term at
September 26, 2008. This debt matures in 2009, but has been classified as long-term on the Consolidated Balance Sheet as
settlement of this debt is not expected to require the use of working capital in the next year and as the Company has both
the intent and the ability to refinance this debt on a long-term basis.
(2) Interest payments consist of interest on our fixed interest rate debt and excludes interest on our variable interest rate debt.
(3) Excludes interest.
(4) Purchase obligations consist of commitments for purchases of good and services.
(5) Other long-term liabilities primarily consist of the following: pension and postretirement costs, income taxes, warranty and
environmental liabilities and are excluded from this table. We are unable to estimate the timing of payment for these items
due to the inherent uncertainties of obligations of this type. The minimum required contributions to our pension plans are
expected to be approximately $63 million in 2009 and we expect to pay $7 million in 2009 related to postretirement benefit
plans.
(6) During the first quarter of 2008, we adopted the provisions of FIN No. 48. As of September 26, 2008, we recorded gross
unrecognized tax benefits of $369 million and gross interest and penalties of $49 million, both of which are classified as
non-current liabilities in the Consolidated Balance Sheet as payment is not expected within one year. At this time, we are
unable to make a reasonably reliable estimate of the timing for such payments in future years; therefore, such amounts have
been excluded from the above contractual obligation table.
70 2008 Financials