Chapter 13- Reporting of Current Liabilities
FORTUNE BRANDS INC.
Consolidated Balance Sheet / Fortune Brands,Inc. and SubsidiariesDecember31
(Inmillions, except per share amounts) / 2007 / 2006
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities
Notes payable to banks / $ / 32.5 / $ / 25.6
Commercial paper / 198.5 / 762.0
Current portion of long-term debt / 200.0 / 1.7
Accounts payable to vendors / 420.3 / 372.1
Accounts payable to related parties / 48.6 / 97.2
Accrued taxes / 376.7 / 250.2
Accrued customer programs / 141.4 / 158.1
Accrued salaries, wages and other compensation / 167.5 / 168.5
Accrued expenses and other current liabilities / 508.4 / 582.3
Current liabilities of discontinued operations / — / 97.7
TOTAL CURRENT LIABILITIES / 2,093.9 / 2,515.4
Long-term debt / 3,942.7 / 5,034.9
Deferred income / 65.2 / 92.2
Deferred income taxes / 951.3 / 1,058.2
Accrued pension and postretirement benefits / 301.6 / 362.0
Other non-current liabilities / 358.2 / 237.2
Non-current liabilities of discontinued operations / — / 80.7
TOTAL LIABILITIES / 7,712.9 / 9,380.6
TOTAL LIABILITIES / 7,712.9 / 9,380.6
Minority interest in consolidated subsidiaries / 558.5 / 559.7
7.Short-Term Borrowings and Credit Facilities
At December31, 2007 and 2006, there were $231.0million and $787.6million of short-term borrowings outstanding, respectively, comprised of notes payable to banks and commercial paper that are used for general corporate purposes, including acquisitions. Included in this amount as of December31, 2007 and 2006, there were $13.4 million and $8.1million outstanding under committed bank credit agreements, which provide for unsecured borrowings of up to $54.5million and $9.0million, respectively. In addition, the Company had uncommitted bank lines of credit, which provide for unsecured borrowings for working capital, of up to $134.9 million, of which $19.0million was outstanding at December31, 2007 and $171.0million, of which $17.5million was outstanding as of December31, 2006. The weighted-average interest rate on these borrowings was 5.4%, 5.2% and 3.9%, respectively, in 2007, 2006 and 2005, including the short-term debt of $1.0billion and $3.8 billion classified as long-termdebt on the consolidated balance sheet as of December31, 2006 and 2005.
See Note15 fora description of the Company’s use of financial instruments.
Notes to Consolidated Financial Statements / Fortune Brands, Inc. and Subsidiaries8.Long-Term Debt
The components of long-term debt are as follows:
(Inmillions) / 2007 / 200661/4% Notes, Due 2008 / $ / 200.0 / $ / 200.0
31/2% Notes, Due 2009 (€300.0) / 438.0 / 396.0
51/8% Notes, Due 2011 / 750.0 / 750.0
4% Notes, Due 2013 (€500.0) / 729.9 / 660.0
47/8% Notes, Due 2013 / 300.0 / 300.0
53/8% Notes, Due 2016 / 950.0 / 950.0
85/8% Debentures, Due 2021 / 90.9 / 90.9
77/8% Debentures, Due 2023 / 150.0 / 150.0
65/8% Debentures, Due 2028 / 200.0 / 200.0
57/8% Notes, Due 2036 / 300.0 / 300.0
Short-term debt classified as long-term debt(a) / — / 1,000.0
Miscellaneous / 33.9 / 39.7
Total debt / 4,142.7 / 5,036.6
Less current portion / 200.0 / 1.7
Total long-term debt / $ / 3,942.7 / $ / 5,034.9
(a) / Based on the long-term credit facilities which support our commercial paper borrowings, we have classified $1.0billion of these borrowings as long-term on the consolidated balance sheet as of December31, 2006. This amount represents the commercial paper amount that the Company believes will remain outstanding for the next twelvemonths. No commercial paper borrowings were classified as long-term on the consolidated balance sheet as of December31, 2007.
At December31, 2007, we had a $2.0billion, 5-year revolving credit agreement, which matures in 2010. On October4, 2007, we renewed our $500million 364-day revolving credit facility to mature in 2008. The agreement includes the option to extend payment for one year at the Company’s discretion for an incremental fee of 0.125% of the outstanding amount. This facility replaces the previous 364-day facility. There were no amounts were outstanding for either facility at December31, 2007 or 2006. The interest rates, which are variable, are based on market interest rates at the time of the borrowing and the Company’s long-term credit rating. Facility fees of 0.08%per annum are subject to increases up to maximum fees of 0.15%per annum in the event our long-term debt rating falls below specified levels. These facilities support the Company’s commercial paper borrowings in the commercial papermarket.
In January2006, we issued long-term debt securities totaling $2.0billion under our shelf registration statement filed with the Securities and Exchange Commission. The $2.0billion of notes consist of $750million of 51/8% notes due January2011, $950million of 53/8% notes due January2016 and $300million of 57/8% notes due January2036. Proceeds were used to pay down commercial paper issued in connection with the 2005 Spirits Acquisition. Net proceeds of $1,977.4million were less price discounts of $9.3million and underwriting fees of $13.3million. The stated coupon rate for each debt issue approximates the effective interest rate, excluding hedging gains or losses. Refer to Note15, “Financial Instruments,” on treasury rate locks associated with the U.S.-denominated long-termdebt.
In addition, in January2006, we issued long-term debt securities totaling €800million (approximately $1billion) in a transaction exempt from registration in accordance with RegulationS under the Securities Act of 1933 because the securities were offered and sold only outside the United States topersons other than U. S. persons. The notes consist of €300million of 31/2% notes due January2009 and €500million of 4% notes due January2013. The U.S. dollar value of these euro-denominated securities is subject to fluctuations in foreign exchange rates. Proceeds were used to pay down commercial paper issued in connection with the 2005 Spirits Acquisition and borrowings under the bridge credit agreement. Net proceeds of €794.5million were less price discounts of €3.1million and underwriting fees of €2.4million. The stated coupon rate for each debt issue approximates the effective interest rate, excluding hedging gains or losses.
Estimated payments for maturing debt during the next five years as of December31, 2007 are as follows: 2008, $200.0million; 2009, $448.0million; 2010, none; 2011 $750.0million and 2012 none.
9.$2.67 Convertible Preferred Stock— Redeemable at Company’s Option
There were 187,347 and 204,980shares of the $2.67 Convertible Preferred stock issued and outstanding at December31, 2007 and 2006, respectively. Reacquired, redeemed or converted authorized shares that are not outstanding are required to be retired or restored to the status of authorized but unissued shares of preferred stock without series designation. The holders of $2.67 Convertible Preferred stock are entitled to cumulative dividends, three-tenths of a vote per share together with holders of common stock (incertain events, to the exclusion of the common shares), preference in liquidation over holders of common stock of $30.50 per share plus accrued dividends and to convert each share of Convertible Preferred stock into 6.601shares of common stock. Authorized but unissued common shares are reserved for issuance upon the conversions, but treasury shares may be and are delivered. Holders converted 17,633shares and 10,067shares during 2007 and 2006, respectively. The Company may redeem the Convertible Preferred stock at a price of $30.50 per share, plus accrued dividends.
The Company paid a cash dividend of $2.67 per share in the aggregate amount of $0.5 million in the year ended December31, 2007. The Company paid cash dividends of $0.6million in each of the years ended December31, 2006 and 2005
SOUTHWEST AIRLINES CO.
CONSOLIDATED BALANCE SHEET
December31,2007 / 2006
(In millions, except share data)
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable / $ / 759 / $ / 643
Accrued liabilities / 3,107 / 1,323
Air traffic liability / 931 / 799
Current maturities of long-term debt / 41 / 122
Total current liabilities / 4,838 / 2,887
5. / Accrued Liabilities
2007 / 2006
(In millions)
Retirement plans (Note14) / $ / 132 / $ / 165
Aircraft rentals / 125 / 128
Vacation pay / 164 / 151
Advances and deposits (Note10) / 2,020 / 546
Deferred income taxes / 370 / 78
Other / 296 / 255
Accrued liabilities
GENERAL MILLS INC.
GENERAL MILLS, INC.
CONSOLIDATED BALANCE SHEETS
In Millions / 2008 / 2007
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable / $ / 937.3 / $ / 777.9
Current portion of long-term debt / 442.0 / 1,734.0
Notes payable / 2,208.8 / 1,254.4
Other current liabilities / 1,239.8 / 2,078.8
Deferred income taxes / 28.4 / –
Total current liabilities / 4,856.3 / 5,845.1