American Home Shield 2011 Annual Report Download - page 57

Table of Contents
through 2012. The remainder of the $226.2 million, or $42.9 million, is related to amounts that the Company's management does not consider readily
available to be used to service the Company's indebtedness due, among other reasons, to the Company's cash management practices and working capital needs
at various subsidiaries.
We consider undistributed earnings of our foreign subsidiaries as of December 31, 2011, to be indefinitely reinvested and, accordingly, no U.S. income
taxes have been provided thereon. As of December 31, 2011, the amount of cash associated with indefinitely reinvested foreign earnings was approximately
$24.1 million. We have not, nor do we anticipate the need to, repatriate funds to the United States to satisfy domestic liquidity needs arising in the ordinary
course of business, including liquidity needs associated with our domestic debt service requirements.
The following table presents the Company's contractual obligations and commitments as of December 31, 2011. See discussion above in Liquidity for
information on our issuance of the 2020 Notes and redemption of the 2015 Notes, which is not reflected in the table below.
(In millions) Total
Less than
1 Yr 1 - 3 Yrs 3 - 5 Yrs
More than
5 Yrs
Principal repayments* $ 3,938.7 $ 47.7 $ 2,532.0 $ 1,001.9 $ 357.1
Capital leases 12.2 4.1 5.4 2.6 0.1
Estimated interest payments(1) 1,080.2 227.4 385.9 169.7 297.2
Non-cancelable operating leases(2) 143.8 42.6 56.0 24.4 20.8
Purchase obligations:
Supply agreements and other(3) 115.3 76.7 24.6 14.0 —
Outsourcing agreements(4) 133.6 52.1 39.0 20.7 21.8
Other long-term liabilities:*
Insurance claims 154.8 73.1 28.8 10.7 42.2
Discontinued Operations 2.6 0.6 0.7 0.2 1.1
Other, including deferred compensation trust(2) 10.8 0.2 1.5 1.5 7.6
Total Amount $ 5,592.0 $ 524.5 $ 3,073.9 $ 1,245.7 $ 747.9
These items are reported in the Consolidated Statements of Financial Position
These amounts represent future interest payments related to the Company's existing debt obligations based on fixed and variable
interest rates and principal maturities specified in the associated debt agreements. Payments related to variable debt are based on
applicable rates at December 31, 2011 plus the specified margin in the associated debt agreements for each period presented as of
December 31, 2011. The estimated debt balance (including capital leases) as of each fiscal year end from 2012 through 2016 is
$3.899 billion, $3.849 billion, $1.362 billion, $359.3 million, and $357.2 million, respectively. The weighted average interest rate
(including interest rate swaps) on the estimated debt balances at each fiscal year end from 2012 through 2016 is expected to be
6.0 percent, 6.0 percent, 9.8 percent, 7.3 percent, and 7.3 percent, respectively. See Note 12 of the Consolidated Financial Statements
for the terms and maturities of existing debt obligations.
A portion of the Company's vehicle fleet and some equipment are leased through operating leases. The lease terms are non-cancelable
for the first twelve-month term, and then are month-to-month, cancelable at the Company's option. The amounts in non-cancelable
operating leases exclude all prospective cancelable payments under these agreements. There are residual value guarantees by the
Company (ranging from 70 percent to 84 percent of the estimated terminal value at the inception of the lease depending on the
agreement) relative to these vehicles and equipment, which historically have not resulted in significant net payments
*
(1)
(2)
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