14. Commitments
Lease Commitments
The company has various long-term operating lease agreements for buildings, port facilities, equipment, ocean-going transportation vessels and railcars, the latest of which expires in 2022. Rental expense for operating leases for the years ended December 31, 2007, 2006 and 2005 was $79.3, $75.4 and $78.9, respectively.
Purchase Commitments
The company has long-term agreements for the purchase of sulfur for use in the production of phosphoric acid. These agreements provide for minimum purchase quantities and certain prices are based on market rates at the time of delivery. The commitments included in the table below are based on contract prices.
The company has entered into long-term natural gas contracts with the National Gas Company of Trinidad and Tobago Limited, the latest of which expires in 2018. The contracts provide for prices that vary primarily with ammonia market prices, escalating floor prices and minimum purchase quantities. The commitments included in the table below are based on floor prices and minimum purchase quantities.
The company also has long-term agreements for the purchase of phosphate rock used at its Geismar facility. The commitments included in the table below are based on the expected purchase quantity and current net base prices.
Other Commitments
Other operating commitments consist principally of various rail freight contracts, the latest of which expires in 2010, and mineral leases, the latest of which expires in 2028.
Minimum future commitments under these contractual arrangements for the next five years and thereafter are shown below.
| Operating Leases |
Purchase Commitments |
Other Commitments |
|||||
| 2008 | $ | 97.4 | $ | 272.1 | $ | 22.7 | |
| 2009 | 89.5 | 119.0 | 19.5 | ||||
| 2010 | 79.3 | 102.0 | 18.7 | ||||
| 2011 | 70.2 | 82.3 | 3.9 | ||||
| 2012 | 66.6 | 66.0 | 3.7 | ||||
| Thereafter | 254.2 | 272.8 | 19.8 | ||||
| Total | $ | 657.2 | $ | 914.2 | $ | 88.3 | |