Obligations and Commitments
We have contractual obligations to make future payments on debt and lease agreements. Additionally, in the normal course of business, we enter into
contractual arrangements whereby we commit to future purchases of products or services from unaffiliated parties. Obligations that are legally binding agreements whereby we agree to purchase products or services with a specific minimum quantity
defined at a fixed, minimum or variable price over a specified period of time are defined as purchase obligations. Included in purchase obligations are vendor contracts of $4.0 billion, commitments to purchase securities of $34.2 billion and
commitments to purchase loans of $51.7 billion. The most significant of our vendor contracts include communication services, processing services and software contracts. Other long-term liabilities include our obligations related to the Qualified
Pension Plans, Nonqualified Pension Plans and Postretirement Health and Life Plans (the Plans). Obligations to the Plans are based on the current and projected obligations of the Plans, performance of the Plans’ assets and any participant
contributions, if applicable. During 2005 and 2004, we contributed $1.1 billion and $303 million to the Plans, and we expect to make at least $134 million of contributions during 2006. Management believes the effect of the Plans on liquidity is not
significant to our overall financial condition. Debt, lease and other obligations are more fully discussed in Note 12 and Note 13 of the Consolidated Financial Statements.
Table 5 presents total long-term debt and other obligations at December 31, 2005.
Table 5
Long-term Debt and Other Obligations
|
| December 31, 2005 |
|
| (Dollars in millions) |
|
Due in
1 year
or less
|
|
Due after
1 year
through
3 years
|
|
Due after
3 years
through
5 years
|
|
Due after
5 years
|
|
Total
|
Long-term debt and capital leases (1) |
|
$ |
11,188 |
|
$ |
24,065 |
|
$ |
20,689 |
|
$ |
44,906 |
|
$ |
100,848 |
| |
| 44,635 |
| 21,235 |
| 22,989 |
| 1,076 |
| 89,935 |
| Operating lease obligations |
| 1,324 |
| 2,202 |
| 1,449 |
| 3,477 |
| 8,452 |
| Other long-term liabilities |
| 134 |
| — |
| — |
| — |
| 134 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total |
|
$ |
57,281 |
|
$ |
47,502 |
|
$ |
45,127 |
|
$ |
49,459 |
|
$ |
199,369 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Footnote (1) |
|
Includes principal payments and capital lease obligations of $40 million. |
| Footnote (2) |
|
Obligations that are legally binding agreements whereby we agree to purchase products or services with a specific minimum quantity defined at a fixed, minimum or variable price over
a specified period of time are defined as purchase obligations. |
Many of our lending relationships contain funded and unfunded elements. The funded portion is reflected on our balance sheet. The unfunded component of these commitments is not recorded on our balance sheet until a
draw is made under the loan facility; however, a reserve is established for probable losses. These commitments, as well as guarantees, are more fully discussed in Note 13 of the Consolidated Financial Statements.
The following table summarizes the total unfunded, or off-balance sheet, credit extension commitment amounts by expiration date. At December 31, 2005, charge cards (nonrevolving card lines) to individuals and government entities guaranteed by the U.S. government in the amount of $9.4 billion (related outstandings of $171 million) were not included in credit card line commitments in the table below.
Back to Table 5
Table 6
Credit Extension Commitments
|
| December 31, 2005 |
|
| (Dollars in millions) |
|
Expires in 1
year or less
|
|
Expires after 1
year through 3 years
|
|
Expires after 3
years through 5 years
|
|
Expires after 5
years
|
|
Total
|
| |
|
$ |
112,829 |
|
$ |
55,840 |
|
$ |
80,748 |
|
$ |
28,340 |
|
$ |
277,757 |
| Home equity lines of credit |
| 1,317 |
| 714 |
| 1,673 |
| 74,922 |
| 78,626 |
| Standby letters of credit and financial guarantees |
| 22,320 |
| 8,661 |
| 5,361 |
| 6,753 |
| 43,095 |
| Commercial letters of credit |
| 4,627 |
| 29 |
| 17 |
| 481 |
| 5,154 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Legally binding commitments |
| 141,093 |
| 65,244 |
| 87,799 |
| 110,496 |
| 404,632 |
| Credit card lines |
| 180,694 |
| 12,274 |
| — |
| — |
| 192,968 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total |
|
$ |
321,787 |
|
$ |
77,518 |
|
$ |
87,799 |
|
$ |
110,496 |
|
$ |
597,600 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Footnote (1) |
|
At December 31, 2005, there were equity commitments of $1.4 billion related to obligations to further fund Principal Investing equity investments. |
Back to Table 6
|
