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Notes to the Consolidated
Financial Statements
(in millions, except per share data and
unless otherwise indicated)
The components of other long-term assets and other long-term
liabilities at December 31, 2008 and 2007 were as follows:
2008 2007
Other long-term assets
Prepaid pension costs $ 61 $ 322
Net investment in discontinued operations(1) 259 277
Internal use software, net 288 270
Restricted cash 183 219
Debt issuance costs, net 48 47
Other 318 293
Total Other long-term assets $1,157 $1,428
Other long-term liabilities
Deferred and other tax liabilities $ 182 $ 250
Minorities’ interests in equity of subsidiaries 120 103
Financial derivative instruments —14
Other 392 429
Total Other long-term liabilities $ 694 $ 796
(1) At December 31, 2008, our net investment in discontinued operations primarily consists of
a $285 performance-based instrument relating to the 1997 sale of The Resolution Group
(“TRG”) net of remaining net liabilities associated with our discontinued operations of $26.
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, 2008 and 2007 were as
follows:
2008 2007
Current maturities of long-term debt $1,549 $426
Notes payable 718
France Bridge Facility due 2008 —81
Italy Credit Facility due 2009 54 —
Total $1,610 $525
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.
68 Xerox 2008 Annual Report