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Table of Contents
Off-Balance Sheet Arrangements
We have no off-
balance sheet arrangements that have or are reasonably likely to have a material current or future effect on our financial
condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources.
Inflation
Inflation has not had a material impact on our operating results. We generally have been able to pass along price increases to our
customers, though certain economic factors and technological advances in recent years have tended to place downward pressure on pricing. We
also have been able to generally offset the effects of inflation on operating costs by continuing to emphasize productivity improvements and by
accelerating our overall cash conversion cycle. There can be no assurances, however, that inflation would not have a material impact on our sales
or operating costs in the future.
Commitments and Contingencies
The information set forth in Note 14 to the accompanying audited consolidated financial statements included in Part II, Item 8 of this
Form 10-K is incorporated herein by reference.
Critical Accounting Policies and Estimates
The preparation of financial statements in accordance with GAAP requires management to make use of certain estimates and
assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial
statements and the reported amounts of revenue and expenses during the reported periods. We base our estimates on historical experience and on
various other assumptions that we believe are reasonable under the circumstances, the results of which form the basis for making judgments
about carrying values of assets and liabilities that are not readily apparent from other sources. Actual results could differ from those estimates.
In Note 1 to the accompanying audited consolidated financial statements, we include a discussion of the significant accounting policies
used in the preparation of our consolidated financial statements. We believe the following are the most critical accounting policies and estimates
that include significant judgments used in the preparation of our financial statements. We consider an accounting policy or estimate to be critical
if it requires assumptions to be made that were uncertain at the time they were made, and if changes in these assumptions could have a material
impact on our financial condition or results of operations.
54
(in millions) Payments Due by Period
Total
< 1 year
1-3 years
4-5 years
> 5 years
Term Loan
(1)
$
1,767.8
$
64.4
$
127.3
$
125.3
$
1,450.8
Senior Notes due 2019
(2)
696.6
42.8
85.7
568.1
—
Senior Notes due 2022
(2)
889.0
37.0
72.0
72.0
708.0
Senior Notes due 2024
(2)
891.3
31.6
63.3
63.3
733.1
Operating leases
(3)
127.5
19.1
31.4
26.4
50.6
Asset retirement obligations
(4)
0.5
—
0.5
—
—
Total
$
4,372.7
$
194.9
$
380.2
$
855.1
$
2,942.5
(1) Includes future principal and cash interest payments on long-term borrowings through scheduled maturity dates. Interest payments for
variable rate debt were calculated using interest rates as of December 31, 2014. Excluded from these amounts are the amortization of
debt issuance and other costs related to indebtedness.
(2) Includes future principal and cash interest payments on long-term borrowings through scheduled maturity dates. Interest on the Senior
Notes is calculated using the stated interest rates. Excluded from these amounts are the amortization of debt issuance and other costs
related to indebtedness.
(3) Includes the minimum lease payments for non-cancelable leases of properties and equipment used in our operations. Additionally,
included in these amounts are future minimum lease payments commencing in the fourth quarter of 2016 that relate to a new lease
entered into in December 2014 for our future headquarters in Lincolnshire, Illinois. Also reflected in these amounts is the future
expiration of two leases in the first quarter of 2016 for facilities currently in use by us which we plan to consolidate into the new
headquarters location and accordingly, these leases will not be renewed.
(4)
Represent commitments to return property subject to operating leases to original condition upon lease termination.