3M 2009 Annual Report Download - page 85

Download and view the complete annual report

Please find page 85 of the 2009 3M annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 132

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132

79
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, 2009):
Long-Term Debt
(Millions)
Description / Principal Amount
Currency/
Fixed vs.
Floating*
Effective
Interest
Rate*
Final
Maturity
Date 2009 2008
Eurobond (625 million Euros)......................... Euro Fixed 4.98% 2014 $ 898 $ 882
Medium-term note ($850 million) ................... USD Fixed 4.42% 2013 849 849
Medium-term note ($800 million) ................... USD Floating 3.22% 2011 801 799
30-year bond ($750 million) ........................... USD Fixed 5.73% 2037 747 747
Eurobond (400 million Euros)......................... Euro Floating 1.33% 2014 623 603
Medium-term note ($500 million) ................... USD Fixed 4.67% 2012 500 500
Medium-term note ($400 million) ................... USD Floating — 2009 — 411
30-year debenture ($330 million) ................... USD Fixed 6.01% 2028 350 351
Dealer Remarketable Securities ($350
million) ........................................................ USD Fixed 5.61% 2010 350 350
Convertible notes ($252 million)..................... USD Fixed 0.50% 2032 225 224
Floating rate note ($100 million)..................... USD Floating 0.00% 2041 100 100
Floating rate note ($60 million)....................... USD Floating 0.00% 2044 60 62
ESOP debt guarantee ($44 million) ............... USD Fixed — 2009 — 44
Other borrowings............................................ Various 1.37% 2010-2040 116 136
Total long-term debt ....................................... $ 5,619 $ 6,058
Less: current portion of long-term debt .......... 522 892
Long-term debt (excluding current portion).... $ 5,097 $ 5,166
Short-Term Borrowings and Current Portion of Long-Term Debt
(Millions)
Effective
Interest Rate* 2009 2008
Current portion of long-term debt ................................................... 4.00% $ 522 $ 892
U.S. dollar commercial paper.........................................................
—
—
575
Other borrowings............................................................................ 7.46% 91 85
Total short-term borrowings and current portion of long-term debt $ 613 $ 1,552
Weighted-Average Effective Interest Rate*
Total Excluding ESOP Debt
At December 31 2009 2008 2009 2008
Short-term ..................................................
4.51% 3.59% N/A 3.53%
Long-term ...................................................
4.04% 4.72% N/A 4.72%
* 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. The ESOP debt matured in 2009.
Maturities of long-term debt for the five years subsequent to December 31, 2009 are as follows (in millions):
2010 2011 2012 2013 2014 After 2014 Total
$ 522 $ 923 $ 724 $ 849 $ 1,521 $ 1,080 $ 5,619
The Company’s $350 million of Dealer Remarketable Securities (classified as current portion of long-term debt) were
remarketed for one year in December 2009. Long-term debt payments due in 2010 include these $350 million of
Dealer Remarketable Securities, which mature in December 2010, and $146 million of floating rate notes. The
floating rate notes 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 2011 include floating rate notes totaling $100 million as a
result of put provisions. Additionally, payments due in 2012 include the $225 million carrying amount of Convertible
Notes, as a result of put provisions.