Annual Report 2007

< Previous
Note 10 of 19
Next >

Notes to the Consolidated Financial Statements

(Dollars in millions, except per-share data and unless otherwise indicated)

The components of other current assets and other current liabilities at December 31, 2007 and 2006 were as follows (in millions):


	2007		2006
Other current assets
Deferred taxes	$	200	$	271
Restricted cash		45		236
Prepaid expenses		120		119
Financial derivative instruments		27		9
Other		290		299
Total Other current assets	$	682	$	934

Other current liabilities
Income taxes payable	$	84	$	63
Other taxes payable		179		157
Interest payable		137		128
Restructuring reserves		81		291
Unearned income		242		194
Financial derivative instruments		30		17
Product warranties		25		21
Dividends payable		40		–
Other		694		546
Total Other current liabilities	$	1,512	$	1,417

The components of other long-term assets and other long-term liabilities at December 31, 2007 and 2006 were as follows (in millions):


	2007		2006
Other long-term assets
Prepaid pension costs	$	322	$	19
Net investment in discontinued operations ⁽¹⁾		277		295
Internal use software, net		270		217
Restricted cash		219		190
Debt issuance costs, net		47		48
Other		293		282
Total Other long-term assets	$	1,428	$	1,051

Other long-term liabilities
Deferred and other tax liabilities	$	250	$	223
Minorities’ interests in equity of subsidiaries		103		108
Financial derivative instruments		14		42
Other		429		448
Total Other long-term liabilities	$	796	$	821

(1) At December 31, 2007, our net investment in discontinued operations primarily consists of a $305 performance-based instrument relating to the 1997 sale of The Resolution Group (“TRG”) net of remaining net liabilities associated with our discontinued operations of $28. The recovery of the performance-based instrument is dependent on the sufficiency of TRG’s available cash flows, as guaranteed by TRG’s ultimate parent, which are expected to be recovered in annual cash distributions through 2017.

< Previous
Note 10 of 19
Next >