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PAGE 33
Contractual Obligations
The following table summarizes our outstanding contractual obligations as of June 30, 2009. We expect to fund
these commitments with existing cash and cash equivalents, short-term investments and cash flows from operations.
(In millions)
Payments Due by Period
Fiscal Years 2010 2011-2013 2014-2016
2017 and
Thereafter Total
Long-term debt:(a)
Principal payments $ – $ – $2,000
$1,750 $ 3,750
Interest payments 145 420 302
1,023 1,890
Construction commitments(b) 621 – –
– 621
Lease obligations:
Capital leases 3 9 1
– 13
Operating leases(c) 457 931 520
477 2,385
Purchase commitments(d) 3,289 382 1
– 3,672
Other long-term liabilities(e) – 110 4
2 116
Total contractual obligations $4,515 $1,852 $2,828
$3,252 $12,447
(a) See Note 12 – Debt of the Notes to Financial Statements.
(b) These amounts represent commitments for the construction of buildings.
(c) These amounts represent undiscounted future minimum rental commitments under noncancellable leases.
(d) These amounts represent purchase commitments, including all open purchase orders and all contracts that are
take-or-pay contracts that are not presented as construction commitments above.
(e) We have excluded long-term tax contingencies and other tax liabilities of $5.5 billion and other long-term
contingent liabilities of $407 million (related to the antitrust and unfair competition class action lawsuits) from
the amounts presented, as the amounts that will be settled in cash are not known and the timing of any
payments is uncertain. We have also excluded unearned revenue of $1.3 billion and non-cash items of $226
million.
RECENTLY ISSUED ACCOUNTING STANDARDS
Recently Adopted Accounting Pronouncements
On April 1, 2009, we adopted the Financial Accounting Standards Board (“FASB”) Staff Positions (“FSP”) FAS 157-
4, FSP FAS 115-2 and FAS 124-2, and FSP FAS 107-1 and APB 28-1. These FSPs are intended to provide
additional application guidance and enhance disclosures about fair value measurements and impairments of
securities. FSP FAS 157-4 clarifies the objective and method of fair value measurement even when there has been
a significant decrease in market activity for the asset being measured. FSP FAS 115-2 and FAS 124-2 establishes a
new model for measuring other-than-temporary impairments for debt securities, including establishing criteria for
when to recognize a write-down through earnings versus other comprehensive income. FSP FAS 107-1 and APB
28-1 expands the fair value disclosures required for all financial instruments within the scope of SFAS No. 107,
Disclosures about Fair Value of Financial Instruments, to interim periods. Adoption of these FSPs did not have a
significant impact on our accounting for financial instruments but did expand our associated disclosures.
On January 1, 2009, we adopted SFAS No. 161, Disclosures about Derivative Instruments and Hedging Activities,
an amendment of FASB Statement No. 133. SFAS No. 161 requires additional disclosures about the Company’s
objectives in using derivative instruments and hedging activities, the method of accounting for such instruments
under SFAS No. 133, Accounting for Derivative Instruments and Hedging Activities, and its related interpretations,
and tabular disclosures of the effects of such instruments and related hedged items on our financial position,
financial performance, and cash flows. See Note 5 – Derivatives of the Notes to Financial Statements.