Black & Decker 2012 Annual Report Download - page 47

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33
Contractual Obligations: The following summarizes the Company’s significant contractual obligations and commitments that
impact its liquidity:
Payments Due by Period
(Millions of Dollars) Total
2013
2014 – 2015
2016 – 2017
Thereafter
Long-term debt (a)………...……………………...
$
3,474
$
10
$
10
$
305
$
3,149
Interest payments on long-term debt (b)…...……..
3,048
155
310
292
2,291
Operating leases…………………………………..
394
112
135
72
75
Inventory purchase commitments(c)……………...
720
720
—
—
—
Deferred compensation…………………………...
18
2
2
1
11
Marketing obligations…………………………….
44
27
8
4
5
Derivatives (d)…………………………………….
1
1
—
—
—
Forward stock purchase contract (e)……………...
350
350
—
—
—
Pension funding obligations (f)…...………………
80
80
—
—
—
Total contractual cash obligations………………...
$
8,129
$
1,457
$
465
$
674
$
5,531
(a) Future payments on long-term debt encompass all payments related to aggregate debt maturities, excluding certain fair
value adjustments included in long-term debt, as discussed further in Note H, Long-Term Debt and Financing
Arrangements.
(b) Future interest payments on long-term debt reflect the applicable fixed interest rate or the variable rate in effect at
December 29, 2012 for floating rate debt.
(c) Inventory purchase commitments primarily consist of open purchase orders to purchase raw materials, components, and
sourced products.
(d) Future cash flows on derivative instruments reflect the fair value as of December 29, 2012. The ultimate cash flows on
these instruments will differ, perhaps significantly, based on applicable market interest and foreign currency rates at
their maturity.
(e) The Company was obligated to pay $350 million to the financial institution counterparty to the forward stock purchase
contract in August 2013, but elected to do so in January 2013. See Note J, Capital Stock, for further discussion.
(f) This amount principally represents contributions either required by regulations or laws or, with respect to unfunded
plans, necessary to fund current benefits. The Company has not presented estimated pension and post-retirement
funding in the table above beyond 2013 as funding can vary significantly from year to year based upon changes in the
fair value of the plan assets, actuarial assumptions, and curtailment/settlement actions.
To the extent the Company can reliably determine when payments will occur pertaining to unrecognized tax benefit liabilities,
the related amount will be included in the table above. However, due to the high degree of uncertainty regarding the timing of
potential future cash flows associated with the $240.1 million of such liabilities at December 29, 2012, the Company is unable
to make a reliable estimate of when (if at all) amounts may be paid to the respective taxing authorities.
Aside from debt payments, for which there is no tax benefit associated with repayment of principal, tax obligations and the
equity purchase contract fees, payment of the above contractual obligations will typically generate a cash tax benefit such that
the net cash outflow will be lower than the gross amounts indicated.
Other Significant Commercial Commitments:
Amount of Commitment Expirations Per Period
(Millions of Dollars)
Total
2013
2014 – 2015
2016 – 2017
Thereafter
U.S. lines of credit………………………………
$
2,200
$
1,000
$
1,200
$
—
$
—
Short-term borrowings, long-term debt and lines of credit are explained in detail within Note H, Long-Term Debt and
Financing Arrangements.