Black & Decker 2011 Annual Report Download - page 43

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31
Contractual Obligations: The following summarizes the Company’s significant contractual obligations and commitments that impact
its liquidity:
Payments Due by Period
(Millions of Dollars)
Total
2012
2013
–
2014
2015
–
2016
Thereafter
Long-term debt(a) ............................................................................... $ 3,343 $ 527 $ 912
$ 305 $ 1,599
Interest payments on long-term debt(b) .............................................. 1,238 135 251
159 693
Operating leases .................................................................................. 424 123 154
74 73
Inventory purchase commitments(c) ................................................... 609 609 —
— —
Deferred compensation ....................................................................... 17 2 2
2 11
Marketing obligations ......................................................................... 62 34 19
5 4
Derivatives (d) .................................................................................... 66 66 —
— —
Forward stock purchase contract (e) ................................................... 350 — 350
— —
Pension funding obligations(f) ............................................................ 110 110 —
— —
Total contractual cash obligations ....................................................... $ 6,219 $ 1,606 $ 1,688
$ 545 $ 2,380
(a) Future payments on long-term debt encompass all payments related to aggregate debt maturities, excluding certain fair value
adjustments included in long-term debt, as discussed further in Note H, Long-Term Debt and Financing Arrangements.
(b) Future interest payments on long-term debt reflect the applicable fixed interest rate or the variable rate in effect at December 31,
2011 for floating rate debt.
(c) Inventory purchase commitments primarily consist of open purchase orders to purchase raw materials, components, and sourced
products.
(d) Future cash flows on derivative instruments reflect the fair value as of December 31, 2011. The ultimate cash flows on these
instruments will differ, perhaps significantly, based on applicable market interest and foreign currency rates at their maturity.
(e) The Company is obligated to pay $350 million to the financial institution counterparty to the forward stock purchase contract in
August 2013, and may elect to do so earlier. See Note J, Capital Stock, of the Notes to the Consolidated Financial Statements for
further discussion.
(f) This amount principally represents contributions either required by regulations or laws or, with respect to unfunded plans,
necessary to fund current benefits. The Company has not presented estimated pension and post-retirement funding in the table
above beyond 2012 as funding can vary significantly from year to year based upon changes in the fair value of the plan assets,
actuarial assumptions, and curtailment/settlement actions.
To the extent the Company can reliably determine when payments will occur pertaining to unrecognized tax benefit liabilities, the
related amount will be included in the table above. However, due to the high degree of uncertainty regarding the timing of potential
future cash flows associated with the $240 million of such liabilities at December 31, 2011, the Company is unable to make a reliable
estimate of when (if at all) amounts may be paid to the respective taxing authorities.
While there is no tax benefit associated with repayment of debt principal, tax obligations, the forward stock purchase contract and the
equity purchase contract fees, payment of the other contractual obligations will typically generate a cash tax benefit such that the net
cash outflow will be lower than the gross amounts indicated.
Other Significant Commercial Commitments:
Amount of Commitment Expirations Per Period
(Millions of Dollars)
Total
2012
2013
–
2014
2015
–
2016
Thereafter
U.S. lines of credit ................................................................
.................
$ 1,950 $ 750
$ —
$ 1,200 $ —
Short-term borrowings, long-term debt and lines of credit are explained in detail within Note H, Long-Term Debt and Financing
Arrangements, of the Notes to the Consolidated Financial Statements.