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42
Contractual Commitments and Obligations
We enter into various contractual obligations that impact, or could impact, our liquidity. The following table summarizes our
contractual obligations and contingencies as of December 31, 2011. Based on our current and anticipated level of operations, we
believe that our proceeds from operating cash flows will be sufficient to meet our anticipated obligations. To the extent that our
operating cash flows are not sufficient to meet our liquidity needs, we may utilize cash on hand or amounts available under our
financing arrangements, if necessary. Refer to Note 8 of the Notes to our Audited Consolidated Financial Statements for additional
information regarding the senior unsecured notes payments described in this table.
Senior unsecured notes
payments(1)
Capital leases(4)
Interest payments(2)
Operating leases (5)
Purchase obligations(3)
Current tax reserve
Payable to Kraft
Total
Total
$ 2,674
18
1,011
292
826
5
109
$ 4,935
Payments due in year
(in millions)
2012
$ 450
5
118
58
590
5
7
$ 1,233
2013
$ 250
6
99
53
129
—
7
$ 544
2014
$ —
3
92
44
51
—
7
$ 197
2015
$ —
1
94
36
22
—
7
$ 160
2016
$ 500
—
88
28
12
—
7
$ 635
After
2016
$ 1,474
3
520
73
22
—
74
$ 2,166
____________________________
(1) Amounts represent payment for the senior unsecured notes issued by the Company. Please refer to Note 8 of the Notes to our
Audited Consolidated Financial Statements for further information.
(2) Amounts represent our estimated interest payments based on (a) specified interest rates for fixed rate debt, (b) capital lease
amortization schedules and (c) debt amortization schedules.
(3) Amounts represent payments under agreements to purchase goods or services that are legally binding and that specify all
significant terms, including capital obligations and long-term contractual obligations.
(4) Amounts represent capitalized lease obligations, net of interest, plus anticipated contingent rentals based on current payment
levels. Interest in respect of capital leases is included under the caption "Interest payments" on this table.
(5) Amounts represent minimum rental commitment under non-cancelable operating leases.
In accordance with U.S. GAAP, we had $567 million of non-current unrecognized tax benefits, related interest and penalties
as of December 31, 2011, classified as a long-term liability. The table above does not reflect any payments related to tax reserves
if it is not possible to make a reasonable estimate of the amount or timing of the payment.
The total accrued benefit liability for pension and other postretirement benefit plans recognized as of December 31, 2011,
was approximately $40 million. Refer to Note 13 of Notes to Consolidated Financial Statements. This amount is impacted by,
among other items, pension expense, funding levels, plan amendments, changes in plan demographics and assumptions, and the
investment return on plan assets. We did not include estimated payments related to accrued our total accrued benefit liability in
the table above.
The Pension Protection Act of 2006 was enacted in August 2006 and established, among other things, new standards for
funding of U.S. defined benefit pension plans. We generally expect to fund all future contributions with cash flows from operating
activities. Our international pension plans are generally funded in accordance with local laws and income tax regulations. Refer
to Note 13 of Notes to Consolidated Financial Statements. We did not include our estimated contributions to our various single
employer plans in the table above.
In general, we are self-insured for large portions of many different types of claims. Our reserves for the Company's self-
insured losses are estimated through actuarial procedures of the insurance industry and by using industry assumptions, adjusted
for our specific expectations based on our claim history. As of December 31, 2011, our self-insurance reserves totaled approximately
$89 million. Refer to Notes 7 and 10 of Notes to Consolidated Financial Statements. We did not include estimated payments related
to our self-insurance reserves in the table above.