ADT 2001 Annual Report Download - page 37

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35
INTEREST RATE SENSITIVITY
The table below provides information about Tyco Industrial’s financial instruments that are sensitive to changes in interest rates,
including long-term investments, debt obligations, interest rate swaps and cross-currency swaps. For long-term investments, the
table presents cash flows of principal payments related to a subordinated, non-collateralized zero coupon loan note, based on the
amortized cost of the investment at September 30, 2001, and the associated fair value interest rate discount. For debt obligations,
the table presents cash flows of principal repayment and weighted-average interest rates. For interest rate swaps and cross-
currency swaps, the table presents notional amounts and weighted-average interest rates. Notional amounts are used to calculate
the contractual payments to be exchanged under the contract. The amounts included in the table below are in U.S. dollars.
FISCAL FISCAL FISCAL FISCAL FISCAL FAIR
($ IN MILLIONS) 2002 2003 2004 2005 2006 THEREAFTER TOTAL VALUE
LONG-TERM INVESTMENT:
Fixed rate (British Pound)
——
134.8
———
134.8 134.8
Interest rate 11.5%
TOTAL DEBT:
Fixed rate (US$) 1,652.1 611.6 68.0 1,218.7 1,688.0 10,355.9 15,594.3 15,838.9
Average interest rate 5.6% 5.0% 6.4% 6.2% 6.1% 3.8%
Fixed rate (Euro)
—————
550.1 550.1 562.7
Average interest rate 6.1%
Fixed rate (Yen) 74.5 39.9 10.6 6.1 3.5 306.1 440.7 440.7
Average interest rate 1.9% 2.3% 2.1% 1.7% 1.9% 3.8%
Fixed rate (British Pound)
———
13.7 65.5
—
79.2 79.2
Average interest rate 4.4% 5.2%
Variable rate (US$) 197.6 2,444.3 9.4 5.0 2,017.8 22.8 4,696.9 4,715.7
Average interest rate (1) 4.0% 3.5% 2.6% 2.8% 3.3% 2.9%
Variable rate (Euro) 94.6 89.7 6.1 3.8 3.7 5.7 203.6 203.6
Average interest rate (1) 4.2% 4.6% 4.7% 4.5% 4.4% 5.0%
Variable rate (French Franc) 4.2 5.0 5.3 5.9 7.0 26.8 54.2 54.2
Average interest rate (1) 4.9% 4.9% 4.9% 4.9% 4.9% 4.9%
INTEREST RATE SWAP:
Fixed to variable (US$) 1,000.0
———
600.0 1,800.0 3,400.0 139.6
Average pay rate (1) 5.2% 4.1% 4.4%
Average receive rate 6.9% 6.4% 6.5%
CROSS-CURRENCY SWAP:
Receive US$/Pay Yen
—
150.0
————
150.0 0.3(2)
Pay Yen interest 0.1
—————
0.1
Receive US$ interest 5.3 2.4
————
7.7
Pay rate 0.1% 0.1%
Receive rate 3.5% 3.5%
(1) Weighted-average variable interest rates are based on applicable rates at September 30, 2001 per the terms of the contracts of the related financial instruments.
(2) The fair value of the cross-currency swap included in the table reflects the portion of the fair value of the contract that is attributable to the interest component of the contract.