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Table of Contents
60
Off-Balance Sheet Arrangements and Long-Term Contractual Obligations
Presented below is a summary of contractual obligations and other minimum commercial commitments as of April 29, 2016. See
Notes 7 and 13 to the consolidated financial statements in “Item 8. Financial Statements and Supplementary Data” in this Annual
Report on Form 10-K for additional information regarding long-term debt and lease obligations, respectively. Additionally, see
Note 11 to the consolidated financial statements in “Item 8. Financial Statements and Supplementary Data” in this Annual Report
on Form 10-K for additional information regarding accrued income tax obligations, which are not reflected in the table below.
Maturity by Fiscal Year
(in millions) Total 2017 2018 2019 2020 2021 Thereafter
Contractual obligations related to
off-balance sheet arrangements:
Operating leases(1) $ 544 $ 180 $ 130 $ 90 $ 56 $ 33 $ 55
Commitments to fund minority
investments/contingent acquisition
consideration(2) 520 89 72 155 48 41 115
Interest payments(3) 13,925 1,058 1,014 911 882 760 9,300
Other(4) 603 351 115 35 27 25 50
Contractual obligations related to
off-balance sheet arrangements
subtotal $ 15,592 $ 1,678 $ 1,331 $ 1,191 $ 1,013 $ 859 $ 9,520
Contractual obligations reflected in
the balance sheet:
Long-term debt, including current
portion(5) $ 30,805 $ 887 $ 6,188 $ 408 $ 3,774 $ 1,102 $ 18,446
Capital leases 132 106 4 3 2 2 15
Contractual obligations reflected in
the balance sheet subtotal $ 30,937 $ 887 $ 6,188 $ 408 $ 3,774 $ 1,102 $ 18,446
Total contractual obligations $ 46,529 $ 2,565 $ 7,519 $ 1,599 $ 4,787 $ 1,961 $ 27,966
(1) Certain leases require us to pay real estate taxes, insurance, maintenance, and other operating expenses associated with the leased premises.
These future costs are not included in the schedule above.
(2) Certain commitments related to the funding of cost or equity method investments and/or previous acquisitions are contingent upon the
achievement of certain product-related milestones and various other favorable operational conditions, and estimated royalty obligations.
While it is not certain if and/or when these payments will be made, the maturity dates included in this table reflect our best estimates.
Contingent consideration includes only the maximum potential amount of undiscounted future contingent consideration associated with all
completed business combinations or purchases of intellectual property prior to April 24, 2009. See Note 2 to the consolidated financial
statements in “Item 8. Financial Statements and Supplementary Data” in this Annual Report on Form 10-K for additional information
regarding our debt agreements.
(3) Interest payments in the table above reflect the contractual interest payments on our outstanding debt, and exclude the impact of the debt
discount amortization and impact of interest rate swap agreements. See Note 7 to the consolidated financial statements in “Item 8. Financial
Statements and Supplementary Data” in this Annual Report on Form 10-K for additional information regarding our debt agreements.
(4) We have included inventory purchase commitments which are legally binding and specify minimum purchase quantities. These purchase
commitments do not exceed our projected requirements and are in the normal course of business. These commitments do not include open
purchase orders. These obligations also include certain research and development arrangements.
(5) Long-term debt in the table above includes the $3.0 billion Term Loan Credit Agreement, $3.1 billion of CIFSA Senior Notes, $16.9 billion
of 2015 Senior Notes, $1.5 billion of 2014 Senior Notes, $1.9 billion of 2013 Senior Notes, $1.1 billion of 2012 Senior Notes, $500 million
of 2011 Senior Notes, $1.3 billion of 2010 Senior Notes, and $700 million of 2009 Senior Notes. The table above excludes the debt premium
and discount, the fair value impact of outstanding interest rate swap agreements, and the unamortized gains from terminated interest rate
swap agreements. See Notes 7 and 8 to the consolidated financial statements in “Item 8. Financial Statements and Supplementary Data” in
this Annual Report on Form 10-K for additional information regarding the interest rate swap agreements.