3M 2008 Annual Report Download - page 77

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71
NOTE 10. Long-Term Debt and Short-Term Borrowings
Long-term debt and short-term borrowings as of December 31 consisted of the following (with interest rates as of
December 31, 2008):
Long-Term Debt
(Millions)
Description / Principal Amount
Currency/
Fixed vs.
Floating*
Effective
Interest
Rate*
Final
Maturity
Date 2008 2007
Eurobond (625 million Euros)...................... Euro Fixed 4.98 % 2014
$ 882 $ 919
Medium-term note ($850 million) ................ USD Fixed 4.42 % 2013
849 —
Medium-term note ($800 million) ................ USD Fixed 4.56 % 2011
799 —
30-year bond ($750 million) ........................ USD Fixed 5.73 % 2037
747 747
Eurobond (400 million Euros)...................... Euro Floating 5.24 % 2014
603 591
Medium-term note ($500 million) ................ USD Fixed 4.67 % 2012
500 500
Medium-term note ($400 million) ................ USD Floating 2.68 % 2009
411 408
30-year debenture ($330 million) ................ USD Fixed 6.01 % 2028
351 350
Dealer remarketable securities
($350 million) ........................................... USD Fixed 7.14 % 2010
350 350
Convertible notes ($252 million).................. USD Fixed 0.50 % 2032
224 222
Floating rate note ($100 million).................. USD Floating 1.65 % 2041
100 100
Floating rate note ($62 million).................... USD Floating 1.65 % 2044
62 62
ESOP debt guarantee ($44 million) ............ USD Fixed 5.62 % 2009
44 87
Other borrowings......................................... Various 4.44 % 2009-2040
136 223
Total long-term debt ....................................
$ 6,058 $ 4,559
Less: current portion of long-term debt .......
892 540
Long-term debt (excluding current portion).
$ 5,166 $ 4,019
Short-Term Borrowings and Current Portion of Long-Term Debt
(Millions)
Effective
Interest
Rate* 2008 2007
Current portion of long-term debt ................................................... 4.59 % $ 892 $ 540
U.S. dollar commercial paper......................................................... 1.74 % 575 —
Non-U.S. dollar commercial paper................................................. — — 349
Other borrowings............................................................................ 5.73 % 85 12
Total short-term borrowings and current portion of long-term debt
$ 1,552 $ 901
Weighted-Average Effective Interest Rate*
Total Excluding ESOP Debt
At December 31 2008 2007 2008 2007
Short-term .................................................... 3.59 % 5.10 % 3.53 % 5.07 %
Long-term ..................................................... 4.72 % 4.48 % 4.72 % 4.47 %
* Debt tables reflect the effects of interest rate swaps at December 31; weighted-average effective interest rate table
reflects the combined effects of interest rate and currency swaps at December 31.
Maturities of long-term debt for the five years subsequent to December 31, 2008 are as follows (in millions):
2009 2010 2011 2012 2013 Thereafter Total
$ 892 $ 109 $ 899 $ 723 $ 849 $ 2,586 $ 6,058
The Company’s $350 million of dealer remarketable securities (classified as current portion of long-term debt) were
remarketed for one year in December 2008. Long-term debt payments due in 2009 include these $350 million of
dealer remarketable securities and $62 million of floating rate notes. These securities are classified as current portion
of long-term debt as the result of put provisions associated with these debt instruments. Long-term debt payments
due in 2010 and 2011 include floating rate notes totaling $85 million and $100 million, respectively, as a result of put
provisions. Additionally, payments due in 2012 include the $224 million carrying amount of Convertible Notes, as a
result of put provisions.