Management’s Discussion and Analysis AFTER  2005 2006 2007 2008 2009 2009 TOTAL Long-term debt (excluding capital leases) 1,018 989 1,726 1,091 1,701 6,000 12,525 Notes payable and bank advances  155 – – – – – 155 Capital leases  103 70 59 47 31 95 405 Operating leases 399 296 258 232 209 1,459 2,853 Commitments for capital expenditures 210 121 45 2 2 28 408 Other purchase obligations 576 375 231 184 175 401 1,942 Other long-term liabilities (including current portion) 97 86 91 79 78 – 431 Total 2,558 1,937 2,410 1,635 2,196 7,983 18,719 • future contributions to the pension plans depend largely on the results of actuarial valuations that are performed periodically and on the investment per- formance of the pension fund assets • future payments of income taxes depend on the amount of taxable earnings and on whether there  are tax loss carryforwards available to reduce income tax liabilities. Long-term debt and notes payable and bank advances include $123 million drawn under our committed credit facilities. They do not include $414 million of letters of credit. The total amount available under these committed credit facilities and under our commer- cial paper programs, including the amount currently drawn, is $2,461 million. The imputed interest to be paid on capital leases is $106 million.  Rental expense relating to operating leases was $406 million in 2004, $368 million in 2003 and  $356 million in 2002. We did not include deferred revenue and gains on assets because they do not represent future cash payments. Our commitments for capital expenditures include investments to expand and update our networks and to meet customer demand. Other purchase obligations consist mainly of contractual obligations under serv- ice contracts. Other Cash Requirements Our cash requirements may also be affected by the  liquidity risks related to our contingencies, off-balance sheet arrangements and derivative instruments. We may not be able to quantify all of these risks. Other long-term liabilities included in the table relate to: • Bell Canada’s future payments over the remaining life of its contract with Certen for the development of Bell Canada’s billing system. The total amount was $301 million at December 31, 2004. • Bell Globemedia’s obligations relating to CRTC benefits owing on previous business combinations. These and other long-term liabilities were $130 mil- lion at December 31, 2004. Guarantees – As a regular part of our business, we enter into agreements that provide for indemnification and guarantees to counterparties in transactions involving business dispositions, sales of assets, sales of services, purchases and development of assets, securiti- zation agreements and operating leases. We cannot reasonably estimate the maximum amount we might be required to pay counterparties because of the nature of almost all of these indem- nifications. As a result, we cannot determine how they could affect our future liquidity, capital resources or credit risk profile. We have not made any significant payments under these indemnifications in the past. See Note  25 to the consolidated financial statements for more information. At December 31, 2004, we had other long-term liabil- ities that are not included in the table. They consisted of an accrued employee benefit liability, future income tax liabilities, deferred revenue and gains on assets and various other long-term liabilities.  We did not include the accrued employee benefit liability and future income tax liabilities because we cannot accurately determine the timing and amount of cash needed for them. This is because: Off-Balance Sheet Arrangements 64 Bell Canada Enterprises  2004 Annual Report