Hess 2014 Annual Report Download - page 53

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38 38
Contractual Obligations and Contingencies
The following table shows aggregate information about certain contractual obligations at December 31, 2014:
Payments Due by Period
Total 2015
2016 and
2017
2018 and
2019 Thereafter
(In millions)
Total debt (excludes interest)* ............................... $ 5,987 $ 68 $ 444 $ 1,148 $ 4,327
Operating leases ...................................................... 2,818 773 1,049 651 345
Purchase obligations:
Capital expenditures ............................................ 3,500 2,246 1,019 194 41
Operating expenses ............................................ 1,306 451 436 278 141
Asset retirement obligations ................................ 2,723 442 419 222 1,640
Transportation and related contracts ................... 1,738 124 355 451 808
Other liabilities ................................................... 1,177 138 115 116 808
* The Corporation anticipates cash payments for interest of $355 million for 2015, $722 million for 2016-2017, $680 million for 2018-2019, and $4,265
million thereafter for a total of $6,022 million.
Capital expenditures represent amounts that were contractually committed at December 31, 2014, including the portion of
the Corporation’s planned capital expenditure program for 2015. Obligations for operating expenses include commitments
for oil and gas production expenses, seismic purchases and other normal business expenses. Other long-term liabilities
reflect contractually committed obligations in the Consolidated Balance Sheet at December 31, 2014, including pension plan
liabilities and estimates for uncertain income tax positions.
The Corporation and certain of its subsidiaries, lease drilling rigs, tankers, office space and other assets for varying periods
under leases accounted for as operating leases.
The Corporation is contingently liable under $54 million of letters of credit at December 31, 2014.
Off-Balance Sheet Arrangements
The Corporation had leveraged leases associated with certain retail gasoline stations which were not included in its
Consolidated Balance Sheet and had a fair value of approximately $238 million at December 31, 2013. If these leases were
included as debt, the Corporation’s December 31, 2013 debt to capitalization ratio would have increased to 19.6% from
19.0%. The leases were terminated in 2014 in conjunction with the anticipated divestiture of retail marketing that closed in
September 2014.
See also Note 18, Guarantees and Contingencies in the Notes to the Consolidated Financial Statements.
Foreign Operations
The Corporation conducts exploration and production activities outside the U.S., principally in Europe (Norway and
Denmark), Africa (Equatorial Guinea, Libya, Algeria and Ghana) and Asia and Other (Joint Development Area of
Malaysia/Thailand, Malaysia, Australia, the Kurdistan region of Iraq, China, Guyana and Canada). Therefore, the
Corporation is subject to the risks associated with foreign operations, including political risk, corruption, acts of terrorism,
tax law changes and currency risk.
See also Item 1A. Risk Factors Related to Our Business and Operations.