Proctor and Gamble 2012 Annual Report Download - page 42
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We maintain bank credit facilities to support our ongoing
commercial paper program. These facilities can be extended
for certain periods of time as specified in, and in accordance
with, the terms of each credit agreement. The current facility
is an $11.0 billion facility split between a $7.0 billion 5-year
facility and a $4.0 billion 364-day facility, which expire in
August 2017 and August 2013, respectively. These facilities
are currently undrawn and we anticipate that they will
remain largely undrawn for the foreseeable future. These
credit facilities do not have cross-default or ratings triggers,
nor do they have material adverse events clauses, except at
the time of signing. In addition to these credit facilities, we
have an automatically effective registration statement on
Form S-3 filed with the SEC that is available for registered
offerings of short- or long-term debt securities.
Guarantees and Other Off-Balance Sheet Arrangements
We do not have guarantees or other off-balance sheet
financing arrangements, including variable interest entities,
which we believe could have a material impact on financial
condition or liquidity.
Contractual Commitments
The following table provides information on the amount and payable date of our contractual commitments as of June 30, 2012.
($ millions) Total
Less Than
1 Year 1-3 Years 3-5 Years
After
5 Years
RECORDED LIABILITIES
Total debt $ 29,490 $ 8,672 $ 6,927 $ 3,356 $ 10,535
Capital leases 45 16 14 14 1
Uncertain tax positions(1) 3333———
OTHER
Interest payments relating to long-term debt 8,866 909 1,546 1,170 5,241
Operating leases(2) 1,817 289 498 393 637
Minimum pension funding(3) 1,032 352 680 — —
Purchase obligations(4) 2,187 1,094 596 215 282
TOTAL CONTRACTUAL COMMITMENTS $ 43,470 $ 11,365 $ 10,261 $ 5,148 $ 16,696
(1) As of June 30, 2012, the Company's Consolidated Balance Sheet reflects a liability for uncertain tax positions of $2.3 billion, including
$505 million of interest and penalties. Due to the high degree of uncertainty regarding the timing of future cash outflows of liabilities for
uncertain tax positions beyond one year, a reasonable estimate of the period of cash settlement beyond twelve months from the balance
sheet date of June 30, 2012 cannot be made.
(2) Operating lease obligations are shown net of guaranteed sublease income.
(3) Represents future pension payments to comply with local funding requirements. These future pension payments assume the Company
continues to meet its future statutory funding requirements. Considering the current economic environment in which the Company
operates, the Company believes its cash flows are adequate to meet the above future statutory funding requirements. The projected
payments beyond fiscal year 2015 are not currently determinable.
(4) Primarily reflects future contractual payments under various take-or-pay arrangements entered into as part of the normal course of
business. Commitments made under take-or-pay obligations represent future purchases in line with expected usage to obtain favorable
pricing. Approximately 22% relates to service contracts for information technology, human resources management and facilities
management activities that have been outsourced. While the amounts listed represent contractual obligations, we do not believe it is
likely that the full contractual amount would be paid if the underlying contracts were canceled prior to maturity. In such cases, we
generally are able to negotiate new contracts or cancellation penalties, resulting in a reduced payment. The amounts do not include
obligations related to the put of our Spanish joint venture discussed further in Note 10 to the Consolidated Financial Statements
(approximately $1 billion) and other contractual purchase obligations that are not take-or-pay arrangements. Such contractual purchase
obligations are primarily purchase orders at fair value that are part of normal operations and are reflected in historical operating cash
flow trends. We do not believe such purchase obligations will adversely affect our liquidity position.