Kraft 2014 Annual Report Download - page 34

Guarantees have not had, and we do not expect them to have, a material effect on our liquidity.
Aggregate Contractual Obligations:
The following table summarizes our contractual obligations at December 27, 2014.
Equity and Dividends
On December 17, 2013, our Board of Directors authorized a $3.0 billion share repurchase program with no expiration date. Under
the share repurchase program, we are authorized to repurchase shares of our common stock in the open market or in privately
negotiated transactions. The timing and amount of share repurchases are subject to management's evaluation of market
conditions, applicable legal requirements, and other factors. We are not obligated to repurchase any shares of our common stock
and may suspend the program at our discretion. As of December 27, 2014, we have repurchased approximately 13.1 million shares
in the aggregate for approximately $746 million under this program since its inception.
See Note 8, Stock Plans, to the consolidated financial statements for a discussion of our share-based equity programs.
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Payments Due
Total 2015 2016-17 2018-19
2020 and
Thereafter
(in millions)
Long-term debt
(1)
$ 10,046 $1,401 $1,002 $ 1,037 $6,606
Interest expense
(2)
6,683 441 824 727 4,691
Capital leases
(3)
38 7 12 7 12
Operating leases
(4)
427 106 147 90 84
Purchase obligations:
(5)
Inventory and production costs 2,242 1,578 664 — —
Other 735 313 287 98 37
2,977 1,891 951 98 37
Pension contributions
(6)
995 195 400 400 —
Other long-term liabilities
(7)
2,045 198 425 401 1,021
Total $ 23,211 $4,239 $3,761 $ 2,760 $12,451
(1)
A
mounts represent the expected cash payments of our long-term debt and do not include unamortized bond premiums or discounts.
(2)
A
mounts represent the expected cash payments of our interest expense on our long-term debt.
(3)
A
mounts represent the expected cash payments of our capital leases, including the expected cash payments of interest expense of approximately $8
million on our capital leases.
(4) Operating leases represent the minimum rental commitments under non-cancelable operating leases.
(5) Purchase obligations for inventory and production costs (such as raw materials, indirect materials and supplies, packaging, co-manufacturing
arrangements, storage, and distribution) are commitments for projected needs to be utilized in the normal course of business. Other purchase
obligations include commitments for marketing, advertising, capital expenditures, information technology, and professional services. Arrangements are
considered purchase obligations if a contract specifies all significant terms, including fixed or minimum quantities to be purchased, a pricing structure,
and approximate timing of the transaction. Any amounts reflected on the consolidated balance sheet as accounts payable and accrued liabilities are
excluded from the table above.
(6) We estimate that 2015 pension contributions would be approximately $195 million and approximately $200 million annually for the next four years
thereafter. We cannot reasonably estimate our contributions to our pension plans beyond 2019.
(7) Other long-term liabilities primarily consist of estimated future benefit payments for our postretirement health care plans through 2024 of approximately
$2.0 billion. We are unable to reliably estimate the timing of the payments beyond 2024; as such, they are excluded from the above table. In addition,
the following long-term liabilities included on the consolidated balance sheet are excluded from the table above: income taxes, insurance accruals, and
other accruals. We are unable to reliably estimate the timing of the payments for these items. As of December 27, 2014, our total net liability for income
taxes, including uncertain tax positions and associated accrued interest and penalties, was $279 million. We currently estimate paying up to
approximately $187 million in the next 12 months related to our income tax obligations as of December 27, 2014.