Comcast 2010 Annual Report Download - page 79

Table of Contents
Note 9: Long-Term Debt
December 31 (in millions)
Weighted Average
Interest Rate as of
December 31, 2010
2010
2009
Senior notes with maturities of 5 years or less
6.96
%
$
8,145
$
6,861
Senior notes with maturities between 6 and 10 years
5.90
%
8,381
9,293
Senior notes with maturities greater than 10 years
6.88
%
14,258
12,287
Senior subordinated notes due 2012
10.63
%
202
202
ZONES due 2029
2.00
%
108
124
Other, including capital lease obligations
—
321
329
Total debt
6.26
%
$
31,415
$
29,096
Less: Current portion
1,800
1,156
Long-term debt
$
29,615
$
27,940
(a)
The December 31, 2010 amount includes £625 million of 5.50% notes due 2029 valued at $976 million using the exchange rate at that date.
(b)
Includes the effects of our derivative financial instruments.
Comcast 2010 Annual Report on Form 10-K
70
(a)
(b)
As of December 31, 2010 and 2009, our debt had an
estimated fair value of $34.312 billion and $31.247 billion,
respectively. The estimated fair value of our publicly traded
debt is based on quoted market values on an active market
for the debt. To estimate the fair value of debt issuances for
which there are no quoted market prices, we use interest
rates available to us for debt issuances with similar terms and
remaining maturities.
Some of our loan agreements require that we maintain
certain financial ratios based on our debt and our operating
income before depreciation and amortization. We were in
compliance with all financial covenants for all periods
presented. See Note 22 for a discussion of our subsidiary
guarantee structures.
As of December 31, 2010 and 2009, accrued interest on our
debt was $524 million and $497 million, respectively, which is
included in accrued expenses and other current liabilities.
Debt Maturities
Debt Borrowings
December 31, 2010 (in millions)
2011
$
1,800
2012
$
821
2013
$
2,455
2014
$
1,167
2015
$
2,369
Thereafter
$
22,803
Year ended December 31, 2010 (in millions)
5.15% notes due 2020
$
1,400
6.40% notes due 2040
1,000
5.50% notes due 2029
997
Other
23
Total
$
3,420
The net proceeds of our borrowings in 2010 were used for
working capital and general corporate purposes, including the
repayment of debt at its maturity and funding a portion of our
payment to GE at the closing of the NBCUniversal
transaction in 2011.
Debt Repayments and Repurchases
Debt Instruments
Commercial Paper Program
Our commercial paper program provides a lower cost
borrowing source of liquidity to fund our short-term working
capital requirements. The program allows for a maximum of
$2.25 billion of commercial paper to be issued at any one
time. Our revolving bank credit facility supports this program.
Revolving Bank Credit Facilities
As of December 31, 2010, we had a $6.8 billion revolving
credit facility due January 2013 (the “credit facility”) with a
syndicate of banks. The base rate, chosen at our option, is
either the London Interbank Offered Rate (“LIBOR”) or the
greater of the prime rate or the Federal Funds rate plus 0.5%.
The borrowing margin is based on our senior unsecured debt
ratings. As of December 31, 2010, the borrowing margin for
LIBOR-based loans was 0.35%.
Lines and Letters of Credit
As of December 31, 2010, we and certain of our subsidiaries
had unused lines of credit totaling $6.4 billion under various
credit
Year ended December 31, 2010 (in millions)
5.85% notes due 2010
$
600
5.45% notes due 2010
500
ZONES due 2029
13
Other
40
Total
$
1,153