Emerson 2004 Annual Report Download - page 44

Download and view the complete annual report

Please find page 44 of the 2004 Emerson 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 59

  • 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

42 Emerson 2004
(9) LONG-TERM DEBT
Long-term debt is summarized as follows:
2003 2004
7 7/8% notes due June 2005 $ 600 600
6.3% notes due November 2005 250 250
5 1/2% notes due September 2008 250 250
5% notes due October 2008 175 175
5.85% notes due March 2009 250 250
7 1/8% notes due August 2010 500 500
5.75% notes due November 2011 250 250
4.625% notes due October 2012 250 250
4 1/2% notes due May 2013 250 250
5 5/8% notes due November 2013 250 250
5% notes due December 2014 250 250
6% notes due August 2032 250 250
Other 212 233
3,737 3,758
Less current maturities 4 622
Total $3,733 3,136
In 1999, the Company issued $250 of 5.85%, ten-year notes that were simultaneously swapped to U.S. commercial paper rates. The
Company terminated the swap in 2001, establishing an effective interest rate of 5.7 percent. In 2000, the Company issued $600 of 7 7/8%,
five-year notes that were simultaneously swapped to floating U.S. commercial paper rates. The Company terminated the swap in 2001,
establishing an effective interest rate of 6.9 percent. During the first quarter of 2004, the Company swapped the $600 of 7 7/8% notes due
June 2005 to a floating rate based on 3-month LIBOR.
Long-term debt maturing during each of the four years after 2005 is $252, $1, $251 and $480, respectively. Total interest paid related to
short-term borrowings and long-term debt was approximately $233, $245 and $283 in 2004, 2003 and 2002, respectively.
As of September 30, 2004, the Company could issue up to $2,500 in debt securities, preferred stock, common stock, warrants, share
purchase contracts and share purchase units under the shelf registration with the Securities and Exchange Commission. The Company may
sell securities in one or more separate offerings with the size, price and terms to be determined at the time of sale. The net proceeds from
the sale of the securities will be used for general corporate purposes, which may include, but are not limited to, working capital, capital
expenditures, financing acquisitions and the repayment of short or long-term borrowings. The net proceeds may be invested temporarily
until they are used for their stated purpose.
(10) RETIREMENT PLANS
Retirement plan expense includes the following components:
U.S. Plans Non-U.S. Plans
2002 2003 2004 2002 2003 2004
Defined benefit plans:
Service cost (benefits earned during the period) $ 41 41 49 9 11 15
Interest cost 134 136 136 16 22 27
Expected return on plan assets (178) (187) (196) (21) (22) (21)
Net amortization 9 34 65 – 3 14
Net periodic pension expense 6 24 54 4 14 35
Defined contribution and multiemployer plans 58 60 66 18 22 22
Total retirement plan expense $ 64 84 120 22 36 57