Tyson Foods 2014 Annual Report Download - page 41

CONTRACTUAL OBLIGATIONS
The following table summarizes our contractual obligations as of September 27, 2014 :
In addition to the amounts shown above in the table, we have unrecognized tax benefits of $206 million and related interest and penalties of
$54 million at September 27, 2014 , recorded as liabilities.
The maximum contractual obligation associated with our cash flow assistance programs at September 27, 2014 , based on the estimated fair
values of the livestock supplier’s net tangible assets on that date, aggregated to approximately $330 million , or approximately $326 million
remaining maximum commitment after netting the cash flow assistance related receivables.
RECENTLY ISSUED/ADOPTED ACCOUNTING PRONOUNCEMENTS
Refer to the discussion under Part II, Item 8, Notes to Consolidated Financial Statements, Note 1: Business and Summary of Significant
Accounting Policies for recently issued accounting pronouncements and Note 2: Changes in Accounting Principles for recently adopted
accounting pronouncements.
36
in millions
Payments Due by Period
2015
2016-
2017
2018-
2019
2020 and
thereafter
Total
Debt and capital lease obligations:
Principal payments
(1)
$
644
$
1,944
$
1,864
$
3,710
$
8,162
Interest payments
(2)
312
488
423
1,540
2,763
Guarantees
(3)
33
33
31
27
124
Operating lease obligations
(4)
107
136
69
104
416
Purchase obligations
(5)
2,625
844
460
249
4,178
Capital expenditures
(6)
525
114
11
11
661
Other long-term liabilities
(7)
—
—
—
—
481
Total contractual commitments
$
4,246
$
3,559
$
2,858
$
5,641
$
16,785
(1)
In the event of a default on payment, acceleration of the principal payments could occur.
(2)
Interest payments include interest on all outstanding debt. Payments are estimated for variable rate and variable term debt based on
effective rates at September 27, 2014 , and expected payment dates.
(3)
Amounts include guarantees of debt of outside third parties, which consist of leases and grower loans, all of which are substantially
collateralized by the underlying assets, as well as residual value guarantees covering certain operating leases for various types of
equipment. The amounts included are the maximum potential amount of future payments.
(4)
Amounts include minimum lease payments under lease agreements.
(5)
Amounts include agreements to purchase goods or services that are enforceable and legally binding and specify all significant terms,
including: fixed or minimum quantities to be purchased; fixed, minimum or variable price provisions; and the approximate timing of the
transaction. The purchase obligations amount included items, such as future purchase commitments for grains, livestock contracts and
fixed grower fees that provide terms that meet the above criteria. For certain grain purchase commitments with a fixed quantity
provision, we have assumed the future obligations under the commitment based on available commodity futures prices as published in
observable active markets as of September 27, 2014 . We have excluded future purchase commitments for contracts that do not meet
these criteria. Purchase orders are not included in the table, as a purchase order is an authorization to purchase and is cancelable.
Contracts for goods or services that contain termination clauses without penalty have also been excluded.
(6)
Amounts include estimated amounts to complete buildings and equipment under construction as of September 27, 2014
.
(7)
Other long-term liabilities primarily consist of deferred compensation, deferred income, self-
insurance, and asset retirement obligations.
We are unable to reliably estimate the amount of these payments beyond fiscal 2015; therefore, we have only included the total liability
in the table above. We also have employee benefit obligations consisting of pensions and other postretirement benefits of $532 million
that are excluded from the table above. A discussion of the company's pension and postretirement plans, including funding matters, is
included in Part II, Item 8, Notes to Consolidated Financial Statements, Note 15: Pensions and Other Postretirement Benefits.