ADT 2009 Annual Report Download - page 150

customary covenants including limits on negative pledges, subsidiary debt and sale/leaseback
transactions. None of these covenants are considered restrictive to our business.
The following tables detail our long-term and short-term debt ratings as of September 25, 2009
and September 26, 2008:
Long-Term Debt Ratings
2009 2008
Moody’s ...................................... Baa1 Baa1
Standard & Poor’s ............................... BBB+ BBB+
Fitch ........................................ BBB+ BBB+
Short-Term Debt Ratings
2009 2008
Moody’s ...................................... P-2 P-2
Standard & Poor’s .............................. A-2 A-2
Fitch ........................................ F2 F2
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 as of September 25, 2009 is as follows ($
in millions):
2010 2011 2012 2013 2014 Thereafter Total
Debt(1) ........................... $227 $ 516 $ 850 $ — $656 $1,913 $4,162
Interest payments(2) .................. 273 255 211 184 164 801 1,888
Capital leases(3) ..................... 18 24 3 4 4 38 91
Operating leases .................... 253 203 147 89 51 123 866
Purchase obligations(4) ................ 90 5 3 — — — 98
Total contractual cash obligations(5)(6) ..... $861 $1,003 $1,214 $277 $875 $2,875 $7,105
(1) Excludes debt discount and swap activity.
(2) Interest payments consist of interest on our fixed interest rate debt and exclude the impact of our interest rate swaps.
(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, warranties 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 $80 million in 2010 and we expect to pay $7 million in 2010 related to postretirement benefit
plans.
(6) As of September 25, 2009, we recorded gross unrecognized tax benefits of $284 million and gross interest and penalties of
$50 million, both of which are classified as non-current liabilities in the Consolidated Balance Sheets 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.
58 2009 Financials