Xerox 2007 Annual Report Download - page 105

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(Dollars in millions, except per-share data and unless otherwise indicated)
Note 10 – Supplementary Financial Information
The components of other current assets and other
current liabilities at December 31, 2007 and 2006 were as
follows (in millions):
2007 2006
Other current assets
Deferred taxes ....................... $ 200 $ 271
Restricted cash ....................... 45 236
Prepaid expenses ..................... 120 119
Financial derivative instruments ....... 27 9
Other ............................... 290 299
Total Other current assets ....... $ 682 $ 934
Other current liabilities
Income taxes payable ................ $ 84 $ 63
Other taxes payable .................. 179 157
Interest payable ..................... 137 128
Restructuring reserves ................ 81 291
Unearned income .................... 242 194
Financial derivative instruments ....... 30 17
Product warranties ................... 25 21
Dividends payable .................... 40 –
Other ............................... 694 546
Total Other current
liabilities ..................... $1,512 $1,417
The components of other long-term assets and other
long-term liabilities at December 31, 2007 and 2006 were
as follows (in millions):
2007 2006
Other long-term assets
Prepaid pension costs ................. $ 322 $ 19
Net investment in discontinued
operations(1) ....................... 277 295
Internal use software, net ............. 270 217
Restricted cash ....................... 219 190
Debt issuance costs, net ............... 47 48
Other ................................ 293 282
Total Other long-term assets ..... $1,428 $1,051
Other long-term liabilities
Deferred and other tax liabilities ....... $ 250 $ 223
Minorities’ interests in equity of
subsidiaries ........................ 103 108
Financial derivative instruments ....... 14 42
Other ................................ 429 448
Total Other long-term liabilities .. $ 796 $ 821
(1) At December 31, 2007, our net investment in
discontinued operations primarily consists of a $305
performance-based instrument relating to the 1997
sale of The Resolution Group (“TRG”) net of remaining
net liabilities associated with our discontinued
operations of $28. The recovery of the performance-
based instrument is dependent on the sufficiency of
TRG’s available cash flows, as guaranteed by TRG’s
ultimate parent, which are expected to be recovered in
annual cash distributions through 2017.
Note 11 – Debt
Short-term borrowings at December 31, 2007 and
2006 were as follows (in millions):
2007 2006
Currentmaturitiesoflong-termdebt .... $426 $1,465
Notes payable ...................... 18 20
France Bridge Facility due 2008 ...... 81 –
Total ................................ $525 $1,485
We classify our debt based on the contractual
maturity dates of the underlying debt instruments or as of
the earliest put date available to the debt holders. We
defer costs associated with debt issuance over the
applicable term or to the first put date, in the case of
convertible debt or debt with a put feature. These costs are
amortized as interest expense in our Consolidated
Statements of Income.
Xerox Annual Report 2007 103