Mondelez 2014 Annual Report Download - page 49

Table of Contents
Off-Balance Sheet Arrangements and Aggregate Contractual Obligations
We have no significant off-balance sheet arrangements other than the contractual obligations discussed below.
Guarantees:
As discussed in Note 11, Commitments and Contingencies , we enter into third-party guarantees primarily to cover the long-term
obligations of our vendors. As part of these transactions, we guarantee that third parties will make contractual payments or achieve
performance measures. At December 31, 2014, we had no material third-party guarantees recorded on our consolidated balance
sheet.
In addition, at December 31, 2014, we were contingently liable for $743 million of guarantees related to our own performance.
These include letters of credit and guarantees related to the payment of custom duties and taxes.
Guarantees do not have, and we do not expect them to have, a material effect on our liquidity.
Aggregate Contractual Obligations:
The following table summarizes our contractual obligations at December 31, 2014.
46
Payments Due
Total
2015
2016
-
17
2018
-
19
2020 and
Thereafter
(in millions)
Debt
(1)
$
15,381
$
1,513
$
3,254
$
2,947
$
7,667
Interest expense
(2)
6,939
700
1,224
877
4,138
Capital leases
24
17
7
–
–
Operating leases
(3)
1,080
309
409
231
131
Purchase obligations:
(4)
Inventory and production costs
6,544
3,935
1,664
811
134
Other
1,378
1,051
320
7
–
7,922
4,986
1,984
818
134
Other long-term liabilities
(5)
666
43
126
190
307
Total
$
32,012
$
7,568
$
7,004
$
5,063
$
12,377
(1)
Amounts include the expected cash payments of our long
-term debt excluding capital leases, which are presented separately in the table above.
The amounts also exclude $(10) million of net unamortized non-cash bond premiums and discounts and mark-to-market adjustments related to our
interest rate swaps recorded in total debt.
(2)
Amounts represent the expected cash payments of our interest expense on our long
-term debt. Interest calculated on our euro and British pound
sterling notes were forecasted using currency exchange rates as of December 31, 2014. An insignificant amount of interest expense was excluded
from the table for a portion of our other non
-
U.S. debt obligations due to the complexities involved in forecasting expected interest payments.
(3)
Operating lease payments represent the minimum rental commitments under non
-
cancelable operating leases.
(4) Purchase obligations for inventory and production costs (such as raw materials, indirect materials and supplies, packaging, co-manufacturing
arrangements, storage and distribution) are commitments for projected needs to be utilized in the normal course of business. Other purchase
obligations include commitments for marketing, advertising, capital expenditures, information technology and professional services. Arrangements
are considered purchase obligations if a contract specifies all significant terms, including fixed or minimum quantities to be purchased, a pricing
structure and approximate timing of the transaction. Most arrangements are cancelable without a significant penalty and with short notice (usually
30 days). Any amounts reflected on the consolidated balance sheet as accounts payable and accrued liabilities are excluded from the table above.
(5) Other long-term liabilities include estimated future benefit payments for our postretirement health care plans through December 31, 2024 of $203
million. We are unable to reliably estimate the timing of the payments beyond 2024; as such, they are excluded from the above table. There are also
another $280 million of various other long-term liabilities that are expected to be paid over the next 5 years. In addition, the following long-term
liabilities included on the consolidated balance sheet are excluded from the table above: accrued pension costs, income taxes, insurance accruals
and other accruals. We are unable to reliably estimate the timing of the payments (or contributions beyond 2015, in the case of accrued pension
costs) for these items. We currently expect to make approximately $529 million in contributions to our pension plans in 2015. We also expect that
our net pension cost will increase to approximately $321 million in 2015. The increase is primarily due to lower discount rates offset by favorable
beginning of the year asset levels and planned contributions. As of December 31, 2014, our total liability for income taxes, including uncertain tax
positions and associated accrued interest and penalties, was $1,041 million. We currently estimate payments of approximately $133 million related
to these positions over the next 12 months.