Avon 2010 Annual Report Download - page 77

NOTE 5. Debt and Other Financing
Debt
Debt at December 31 consisted of the following:
2010 2009
Debt maturing within one year:
Notes payable $ 214.1 $ 122.8
Current portion of long-term debt 513.5 15.0
Total $ 727.6 $ 137.8
Long-term debt:
5.125% Notes, due January 2011 $ 500.0 $ 499.8
4.80% Notes, due March 2013 249.8 249.8
4.625% Notes, due May 2013 118.7 116.3
5.625% Notes, due March 2014 498.3 497.7
2.60% Senior Notes, Series A, due November 2015 142.0 –
5.75% Notes, due March 2018 249.4 249.3
4.20% Notes, due July 2018 249.4 249.3
6.50% Notes, due March 2019 346.4 345.9
Other, payable through 2019 with interest from
.93% to 12.6% 80.7 86.5
4.03% Senior Notes, Series B, due November 2020 290.0 –
4.18% Senior Notes, Series C, due November 2022 103.0 –
Total long-term debt 2,827.7 2,294.6
Adjustments for debt with fair value hedges 94.4 27.6
Less current portion (513.5) (15.0)
Total $2,408.6 $2,307.2
Notes payable included short-term borrowings of international subsidiaries at average annual interest rates of approximately 5.6% at
December 31, 2010, and 5.8% at December 31, 2009. Total notes payable include $58.2 of bank overdrafts at December 31, 2010.
Other long-term debt, payable through 2019, included obligations under capital leases of $15.2 at December 31, 2010, and $15.1 at
December 31, 2009, which primarily relate to leases of automobiles and equipment. In addition, other long-term debt, payable through
2019, at December 31, 2010, included financing lease obligations entered into in 2009 for $65.5, which primarily relates to the sale and
leaseback of equipment and software in one of our distribution facilities in North America.
Adjustments for debt with fair value hedges include adjustments to reflect net unrealized gains of $94.4 and $27.6 at December 31, 2010,
and 2009, respectively. See Note 8, Financial Instruments and Risk Management.
We held interest-rate swap contracts that swap approximately 74% and 82% at December 31, 2010, 2009, respectively, of our long-term
debt to variable rates. See Note 8, Financial Instruments and Risk Management.
On November 23, 2010, the Company sold and issued, in a private placement exempt from registration under the Securities Act of 1933, as
amended, $142.0 in aggregate principal amount of Senior Notes, Series A (the “Series A Notes”), $290.0 in aggregate principal amount of
the Senior Notes, Series B (the “Series B Notes”) and $103.0 in aggregate principal amount of the Senior Notes, Series C (the ‘Series C
Notes” and collectively with the Series A Notes and Series B Notes, the “Notes”). The Series A Notes bear interest at the rate of 2.60% per
annum, payable semi-annually, and will mature on November 23, 2015. The Series B Notes bear interest at the rate of 4.03% per annum,
payable semi-annually, and will mature on November 23, 2020. The Series C Notes bear interest at the rate of 4.18% per annum, payable
semi-annually, and will mature on November 23, 2022. The Notes are senior unsecured obligations of the Company, rank equal in right of
payment with all other senior unsecured indebtedness of the Company, and are unconditionally guaranteed by one of the Company’s
A V O N 2010 F-13