Hydro Annual Report 2011b

102
FINANCIAL AND OPERATING PERFORMANCE
Cash flow and liquidity
Hydro expects that cash from continuing operations, together with its liquidity holdings and available credit facilities, will be
sufficient to cover planned capital expenditures, operational requirements, and financing activities in 2012.
1) Excluding amounts relating to the Vale Aluminium acquisition.
Long-term borrowing and funding requirements
Norsk Hydro ASA has a USD 1.7 billion revolving multi-currency credit facility with a syndicate of international banks,
maturing in July 2014. There was no borrowing under the facility as of December 31, 2011. See note 30 to the consolidated
financial statements for additional information.
Planned capital expenditures and other potential financing requirements in 2012 will be covered by internally generated funds
in addition to external funding.
Hydro has the ambition over time to access the national and international bond markets as its primary source for external
funding of long-term capital requirements. The revolving facility will continue to serve primarily as a back-up for unforeseen
funding requirements and will therefore be maintained as a reserve.
Contractual and other obligations, commitments and off-balance sheet arrangements
A summary of Hydro's total contractual obligations and commercial commitments to make future payments is presented
below. For further information, see notes 15 Operating leases, 30 Long-term debt, 39 Contractual commitments and other
commitments for future investments and 31 Provisions to Hydro's consolidated financial statements.
Hydro is contingently liable for certain guarantees amounting to NOK 11 billion, mainly related to jointly controlled entities
and in connection with the sale of companies. This amount is excluded from the table below, and none of these amounts are
recorded in the consolidated balance sheet as of the end of 2011. See note 37 Guarantees to Hydro's consolidated financial
statements for a description of such guarantees.
Amounts in NOK million Total
Payments due by period
Less than 1
year 1­3 years 3­5 years Thereafter
Long­term debt including interest 5 510 1 134 2 382 992 1 001
Operating lease obligations 5 881 513 872 772 3 724
Unconditional purchase obligations 1)
110 345 12 075 20 520 16 616 61 136
Contractual commitments for PP&E 1 654 1 328 273 53 ­
Short­term and long­term provisions 2)
4 700 1 422 765 567 1 946
Total contractual and non­contractual obligations 128 090 16 472 24 812 19 001 67 807
1) Unconditional purchase obligations exclude long-term contracts with part owned entities.
2) Short-term and long-term provisions includes certain accruals and provisions which are non-contractual, but related to liabilities or obligations that are
measurable and expected to occur in future periods.