Contractual Obligations
The following table sets forth, by period due or year of expected expiration, as applicable, a summary of the Company’s
contractual obligations as of December 31, 2016 under (1) debt obligations, (2) leases, (3) purchase obligations and (4) other
long-term liabilities reflected on the Company’s balance sheet under GAAP. The amounts presented in the “Other long-term
liabilities” line in the table below include $940 million of noncurrent gross unrecognized tax benefits and related interest (and
do not include $172 million of current gross unrecognized tax benefits which are included in the “Accrued expenses and other
liabilities” line on the Consolidated Balance Sheet). However, the timing of the long-term portion of these liabilities is
uncertain, and therefore, they have been included in the “More Than 5 Years” column in the table below. Refer to Note 12 to
the Consolidated Financial Statements for additional information on unrecognized tax benefits. Certain of the Company’s
acquisitions also involve the potential payment of contingent consideration. The table below does not reflect any such
obligations, as the timing and amounts of any such payments are uncertain. Refer to “—Off-Balance Sheet Arrangements” for
a discussion of other contractual obligations that are not reflected in the table below.
($ in millions)
Less Than
One Year
Total
1-3 Years
More Than
5 Years
4-5 Years
Debt and leases:
Debt obligations (a)(b)
Capital lease obligations (b)
Total debt
$
Interest payments on debt and capital lease
obligations (c)
Operating lease obligations (d)
Other:
Purchase obligations (e)
Other long-term liabilities reflected on the
Company’s balance sheet under GAAP (f)
Total
$
12,250.5
18.5
12,269.0
$
2,591.5
3.3
2,594.8
$
1,120.3
3.3
1,123.6
$
5,221.3
0.9
5,222.2
$
3,317.4
11.0
3,328.4
1,237.6
143.8
241.2
183.5
669.1
741.0
187.0
267.1
149.0
137.9
543.5
492.3
40.3
6.6
4.3
5,670.3
20,461.4
—
3,417.9
729.6
2,401.8
660.8
6,222.1
4,279.9
8,419.6
$
$
$
$
(a)
As described in Note 9 to the Consolidated Financial Statements.
Amounts do not include interest payments. Interest on debt and capital lease obligations is reflected in a separate line in the table.
(c)
Interest payments on debt are projected for future periods using the interest rates in effect as of December 31, 2016. Certain of these
projected interest payments may differ in the future based on changes in market interest rates.
(d)
As described in Note 15 to the Consolidated Financial Statements, certain leases require the Company to pay real estate taxes, insurance,
maintenance and other operating expenses associated with the leased premises. These future costs are not included in the schedule above.
(e)
Consist of agreements to purchase goods or services that are enforceable and legally binding on the Company and that specify all
significant terms, including fixed or minimum quantities to be purchased, fixed, minimum or variable price provisions and the approximate
timing of the transaction.
(f)
Primarily consist of obligations under product service and warranty policies and allowances, performance and operating cost guarantees,
estimated environmental remediation costs, self-insurance and litigation claims, postretirement benefits, pension obligations, deferred tax
liabilities and deferred compensation obligations. The timing of cash flows associated with these obligations is based upon management’s
estimates over the terms of these arrangements and is largely based upon historical experience.
(b)
Off-Balance Sheet Arrangements
Guarantees
The following table sets forth, by period due or year of expected expiration, as applicable, a summary of guarantees of the
Company as of December 31, 2016.
Amount of Commitment Expiration per Period
($ in millions)
Guarantees
Less Than
One Year
Total
$
799.0
$
707.2
1-3 Years
$
52.8
More Than
5 Years
4-5 Years
$
16.9
$
22.1
Guarantees consist primarily of outstanding standby letters of credit, bank guarantees and performance and bid bonds. These
guarantees have been provided in connection with certain arrangements with vendors, customers, insurance providers,
50