Baker Hughes 2015 Annual Report Download - page 46

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We believe our current credit ratings would allow us to obtain interim financing over and above our existing
credit facility for any currently unforeseen significant needs.
Cash Requirements
In 2016, we believe cash on hand, cash flows from operating activities and the available credit facility will
provide us with sufficient capital resources and liquidity to manage our working capital needs, meet contractual
obligations, fund capital expenditures and dividends, and support the development of our short-term and long-term
operating strategies. If necessary, we may issue commercial paper or other short-term debt to fund cash needs in
the U.S. in excess of the cash generated in the U.S.
Our capital expenditures can be adjusted and managed by us to match market demand and activity levels. In
light of the current market conditions, capital expenditures in 2016 will be made as appropriate at a rate that we
estimate would equal $450 million to $550 million on an annualized basis. The expenditures are expected to be
used primarily for normal, recurring items necessary to support our business. We also anticipate making income tax
payments in the range of $300 million to $350 million in 2016. For all defined benefit, defined contribution and other
postretirement plans, we expect to contribute between $245 million to $275 million to these plans in 2016. See
Note 13. "Employee Benefit Plans" of the Notes to Consolidated Financial Statements in Item 8 herein for further
discussion.
In May 2014, the Board of Directors approved a $0.02 per share increase in the quarterly cash dividend to
$0.17 per share of common stock for the August 2014 holders of record over the previous quarter's dividend of
$0.15 per share of common stock. We anticipate paying dividends in the range of $70 million to $78 million in the
first quarter of 2016.
Under the Merger Agreement with Halliburton, as described in Note 2. "Halliburton Merger Agreement" of the
Notes to Consolidated Financial Statements in Item 8 herein, we have agreed not to increase the quarterly dividend
while the Merger is pending.
Contractual Obligations
In the table below, we set forth our contractual cash obligations as of December 31, 2015. 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) $ 4,069 $ 151 $ 1,046 $ 34 $ 2,838
Estimated interest payments (2) 2,787 223 432 288 1,844
Operating leases (3) 590 183 184 72 151
Purchase obligations (4) 848 202 349 230 67
Liabilities for uncertain income tax positions (5) 312 93 54 127 38
Other long-term liabilities 137 34 37 6 60
Total (6) $ 8,743 $ 886 $ 2,102 $ 757 $ 4,998
(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) Amounts represent the 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