OFF-BALANCE SHEET
ARRANGEMENTS AND OTHER OBLIGATIONS
Off-balance
sheet arrangements
As of December 29, 2007 the Company did not have any
off-balance sheet arrangements. As of December 30, 2006,
our off balance sheet arrangements were limited to a residual
value guarantee on one operating lease of approximately
$13 million and guarantees on loans to independent
contractors for their purchase of DSD route franchises up to
$17 million. During 2007, we terminated the operating lease
and purchased the facility. See Note 6 within the Notes to
Consolidated Financial Statements for further information.
Additionally, during 2007, we completed a program to reorganize
the DSD operations resulting in the exiting of the route
franchise agreements. See Note 3 within the Notes to
Consolidated Financial Statements for further information.
Contractual
obligations
The following table summarizes future estimated cash payments to
be made under existing contractual obligations. Further
information on debt obligations is contained in Note 7
within Notes to Consolidated Financial Statements. Further
information on lease obligations is contained in Note 6.
Further information on uncertain tax positions is contained in
Note 11.
21
| Contractual obligations | Payments due by period | |||||||||||||||||||||||||||
|
2013 and |
||||||||||||||||||||||||||||
| (millions) | Total | 2008 | 2009 | 2010 | 2011 | 2012 | beyond | |||||||||||||||||||||
|
Long-term debt:
|
||||||||||||||||||||||||||||
|
Principal
|
$ | 3,751 | $ | 466 | $ | 2 | $ | 1 | $ | 1,429 | $ | 751 | $ | 1,102 | ||||||||||||||
|
Interest (a)
|
2,504 | 221 | 215 | 215 | 167 | 170 | 1,516 | |||||||||||||||||||||
|
Capital leases
|
8 | 1 | 1 | 1 | 1 | 1 | 3 | |||||||||||||||||||||
|
Operating leases
|
730 | 159 | 137 | 112 | 83 | 56 | 183 | |||||||||||||||||||||
|
Purchase obligations (b)
|
612 | 477 | 91 | 34 | 4 | 4 | 2 | |||||||||||||||||||||
|
Uncertain tax positions (c)
|
36 | 36 | — | — | — | — | — | |||||||||||||||||||||
|
Other long-term (d)
|
592 | 117 | 76 | 71 | 79 | 60 | 189 | |||||||||||||||||||||
|
Total
|
$ | 8,233 | $ | 1,477 | $ | 522 | $ | 434 | $ | 1,763 | $ | 1,042 | $ | 2,995 | ||||||||||||||
| (a) | Includes interest payments on long-term fixed rate debt. As of December 29, 2007, the Company did not have any long-term variable rate debt or any outstanding interest rate derivative financial instruments. | |
| (b) | Purchase obligations consist primarily of fixed commitments under various co-marketing agreements and to a lesser extent, of service agreements, and contracts for future delivery of commodities, packaging materials, and equipment. The amounts presented in the table do not include items already recorded in accounts payable or other current liabilities at year-end 2007, nor does the table reflect cash flows we are likely to incur based on our plans, but are not obligated to incur. Therefore, it should be noted that the exclusion of these items from the table could be a limitation in assessing our total future cash flows under contracts. | |
| (c) | In addition to the $36 million reported in the 2008 column and classified as a current liability, the Company has $133 million recorded in long-term liabilities for which it is not reasonably possible to predict when it may be paid. | |
| (d) | Other long-term contractual obligations are those associated with noncurrent liabilities recorded within the Consolidated Balance Sheet at year-end 2007 and consist principally of projected commitments under deferred compensation arrangements, multiemployer plans, and supplemental employee retirement benefits. The table also includes our current estimate of minimum contributions to defined benefit pension and postretirement benefit plans through 2013 as follows: 2008-$63; 2009-$51; 2010-$52; 2011-$52; 2012-$41; 2013-$43. |
