CenterPoint Energy 2012 Annual Report Download - page 66

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44
The following table sets forth estimates of our contractual obligations, including payments due by period (in millions):
Contractual Obligations Total 2013 2014-2015 2016-2017 2018 and
thereafter
Transition and system restoration bond debt........................ $ 3,847 $ 447 $ 726 $ 802 $ 1,872
Other long-term debt (1) ...................................................... 6,555 815 579 953 4,208
Interest payments — transition and system restoration
bond debt (2)..................................................................... 730 135 228 176 191
Interest payments — other long-term debt (2)..................... 3,759 327 579 497 2,356
Short-term borrowings ......................................................... 3838———
Capital leases........................................................................ 1——— 1
Operating leases (3).............................................................. 48 12 15 8 13
Benefit obligations (4).......................................................... —————
Purchase obligations (5)....................................................... 4 4———
Non-trading derivative liabilities ......................................... 16 14 2 — —
Other commodity commitments (6)..................................... 1,389 430 558 245 156
Other..................................................................................... 6 6———
Total contractual cash obligations...................................... $ 16,393 $ 2,228 $ 2,687 $ 2,681 $ 8,797
___________________
(1) 2.0% Zero-Premium Exchangeable Subordinated Notes due 2029 (ZENS) obligations are included in the 2018 and
thereafter column at their contingent principal amount as of December 31, 2012 of $784 million. These obligations are
exchangeable for cash at any time at the option of the holders for 95% of the current value of the reference shares
attributable to each ZENS ($540 million at December 31, 2012), as discussed in Note 9 to our consolidated financial
statements.
(2) We calculated estimated interest payments for long-term debt as follows: for fixed-rate debt and term debt, we calculated
interest based on the applicable rates and payment dates; for variable-rate debt and/or non-term debt, we used interest
rates in place as of December 31, 2012. We typically expect to settle such interest payments with cash flows from operations
and short-term borrowings.
(3) For a discussion of operating leases, please read Note 13(c) to our consolidated financial statements.
(4) In 2013, we expect to make contributions to our qualified pension plan aggregating approximately $83 million. We expect
to contribute approximately $9 million and $18 million, respectively, to our non-qualified pension and postretirement
benefits plans in 2013.
(5) Represents capital commitments for material in connection with our Interstate Pipelines business segment.
(6) For a discussion of other commodity commitments, please read Note 13(a) to our consolidated financial statements.
Off-Balance Sheet Arrangements. Other than the guaranties described below and operating leases, we have no off-balance
sheet arrangements.
Prior to the distribution of our ownership in RRI to our shareholders, CERC had guaranteed certain contractual obligations
of what became RRI’s trading subsidiary. When the companies separated, RRI agreed to secure CERC against obligations under
the guaranties RRI had been unable to extinguish by the time of separation. Pursuant to such agreement, as amended in December
2007, RRI (now GenOn) agreed to provide to CERC cash or letters of credit as security against CERC’s obligations under its
remaining guaranties for demand charges under certain gas transportation agreements if and to the extent changes in market
conditions expose CERC to a risk of loss on those guaranties based on an annual calculation, with any required collateral to be
posted each December. The undiscounted maximum potential payout of the demand charges under these transportation contracts,
which will be in effect until 2018, was approximately $73 million as of December 31, 2012. Based on market conditions in the
fourth quarter of 2012 at the time the most recent annual calculation was made under the agreement, GenOn was not obligated to
post any security. As a result, CenterPoint Energy returned to GenOn in the fourth quarter of 2012 the approximately $28 million
of aggregate collateral previously posted by GenOn under the agreement. If GenOn should fail to perform the contractual