Baker Hughes 2014 Annual Report Download - page 65

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Contractual Obligations
In the table below, we set forth our contractual cash obligations as of December 31, 2014. Certain amounts
included in this table are based on our estimates and assumptions about these obligations, including their duration,
anticipated actions by third parties and other factors. The contractual cash obligations we will actually pay in future
periods may vary from those reflected in the table because the estimates and assumptions are subjective.
Payments Due by Period
(In millions) Total Less Than 1 Year 2 - 3 Years 4 - 5 Years More Than 5 Years
Total debt and capital lease obligations (1) $ 4,161 $ 220 $ 47 $ 1,044 $ 2,850
Estimated interest payments (2) 3,014 227 444 356 1,987
Operating leases (3) 806 284 305 103 114
Purchase obligations (4) 1,427 532 568 228 99
Liabilities for uncertain income tax positions (5) 291 117 57 90 27
Other long-term liabilities 182 28 77 16 61
Total (6) $ 9,881 $ 1,408 $ 1,498 $ 1,837 $ 5,138
(1) Amounts represent the expected cash payments for the principal amounts related to our debt, including
capital lease obligations. Amounts for debt do not include any unamortized discounts or deferred issuance
costs. Expected cash payments for interest are excluded from these amounts.
(2) Amounts represent the expected cash payments for interest on our long-term debt and capital lease
obligations.
(3) Represents future minimum payments under noncancelable operating leases with initial or remaining terms
of one year or more. We enter into operating leases, some of which include renewal options. We have
excluded renewal options from the table above unless it is anticipated that we will exercise such renewals.
(4) Purchase obligations include capital improvements as well as agreements to purchase goods or services
that are enforceable and legally binding and that specify all significant terms, including: fixed or minimum
quantities to be purchased; fixed, minimum or variable price provisions; and the approximate timing of the
transaction.
(5) The estimated income tax liabilities for uncertain tax positions will be settled as a result of expiring statutes,
audit activity, competent authority proceedings related to transfer pricing, or final decisions in matters that
are the subject of litigation in various taxing jurisdictions in which we operate. The timing of any particular
settlement will depend on the length of the tax audit and related appeals process, if any, or an expiration of
a statute. If a liability is settled due to a statute expiring or a favorable audit result, the settlement of the tax
liability would not result in a cash payment.
(6) Amount does not include expected contributions to our pension and other postretirement benefit plans of
between $85 million and $100 million as the majority of these contributions relate to amounts greater than
necessary to meet minimum funding requirements and as such would not be considered a contractual
obligation.
Off-Balance Sheet Arrangements
In the normal course of business with customers, vendors and others, we have entered into off-balance sheet
arrangements, such as surety bonds for performance, letters of credit and other bank issued guarantees, which
totaled approximately $1.3 billion at December 31, 2014. It is not practicable to estimate the fair value of these
financial instruments. None of the off-balance sheet arrangements either has, or is likely to have, a material effect
on our consolidated financial statements.
As of December 31, 2014, we had no material off-balance sheet financing arrangements other than normal
operating leases. As such, we are not materially exposed to any financing, liquidity, market or credit risk that could
arise if we had engaged in such financing arrangements.