DuPont 2005 Annual Report Download - page 85

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E. I. du Pont de Nemours and Company
Notes to Consolidated Financial Statements (continued)
(Dollars in millions, except per share)
Trade payables includes $65 for 2005 and $78 for 2004 due to equity affiliates. Payables to banks represent checks issued on
certain disbursement accounts but not presented to the banks for payment. The reported amounts shown above approximate
fair value because of the short-term maturity of these obligations.
19. Short-Term Borrowings and Capital Lease Obligations
December 31, 2005 2004
Commercial paper $ – $ 584
Other loans–various currencies 383 156
Long-term debt payable within one year 986 167
Industrial development bonds 26 26
Capital lease obligations 23
$1,397 $ 936
The estimated fair value of the company’s short-term borrowings, including interest rate financial instruments, based on quoted
market prices for the same or similar issues, or on current rates offered to the company for debt of the same remaining
maturities, was $1,400 and $900 at December 31, 2005 and 2004, respectively. The change in estimated fair value in 2005 was
due to an increase in short-term debt, primarily subsidiary borrowings due within one year, and increase in current portion of
long-term debt.
Unused short-term bank credit lines were approximately $3,500 and $3,300 at December 31, 2005 and 2004, respectively. These
lines support short-term borrowings.
The weighted-average interest rate on short-term borrowings outstanding at December 31, 2005 and 2004, was 4.8 percent and
3.5 percent, respectively.
20. Other Accrued Liabilities
December 31, 2005 2004
Deferred revenue $ 662 $ 760
Payroll and other employee-related costs 652 681
Discounts and rebates 364 354
Accrued other postretirement benefits cost (Note 28) 350 456
Forward hedge liabilities 27 693
Miscellaneous 912 1,110
$2,967 $4,054
Deferred revenue principally includes advance customer payments related to businesses within the Agriculture & Nutrition
segment. The forward hedge liabilities represent the fair value of the company’s forward exchange contracts used to offset its
net exposures, by currency, related to the foreign currency-denominated monetary assets and liabilities of its operations. The
objective of this program is to maintain an approximately balanced position in foreign currencies in order to minimize, on an
after-tax basis, the effects of exchange rate changes. Miscellaneous other accrued liabilities principally includes accrued plant
and operating expenses, accrued litigation expenses, employee separation costs in connection with the company’s restructur-
ing programs and accrued environmental remediation costs.
F-26