Honeywell 2005 Annual Report Download - page 91

HONEYWELL INTERNATIONAL INC.
NOTES TO FINANCIAL STATEMENTS—(Continued)
(Dollars in millions, except per share amounts)
Note 15—Long-term Debt and Credit Agreements
December 31,
2005 2004
5.25% notes due 2006 $ — $ 368
85⁄8% debentures due 2006 — 100
51⁄8% notes due 2006 — 500
7.0% notes due 2007 350 350
71⁄8% notes due 2008 200 200
6.20% notes due 2008 200 200
Zero coupon bonds and money multiplier notes, 13.0%–14.26%, due 2009 100 100
Floating rate notes due 2009-2011 249 252
7.50% notes due 2010 1,000 1,000
61⁄8% notes due 2011 500 500
Industrial development bond obligations, 3.25%–9.50% maturing at various dates through 2037 65 66
65⁄8% debentures due 2028 216 216
9.065% debentures due 2033 51 51
Other (including capitalized leases), 0.53%–15.69%, maturing at various dates through 2020 151 166
$3,082 $4,069
The schedule of principal payments on long-term debt is as follows:
At December 31,
2005
2006 $ 995
2007 414
2008 412
2009 211
2010 1,130
Thereafter 915
4,077
Less—current portion (995)
$ 3,082
We maintain $2.3 billion of bank revolving credit facilities with a group of banks, arranged by Citigroup Global Markets Inc. and
J.P. Morgan Securities Inc., which is comprised of: (a) a $1.3 billion Five-Year Credit Agreement, with a $300 million letter of credit
sub-limit and (b) a $1 billion Five-Year Credit Agreement with a $200 million letter of credit sub-limit. The credit agreements are
maintained for general corporate purposes, including support for the issuance of commercial paper. We had no borrowings
outstanding under either agreement at December 31, 2005. We have issued $175 million of letters of credit under the $1.3 billion Five-
Year Credit Agreement at December 31, 2005.
Neither of the credit agreements restricts our ability to pay dividends and neither contains financial covenants. The failure to
comply with customary conditions or the occurrence of customary events of default contained in the credit agreements would prevent
any further borrowings and would generally require the repayment of any outstanding borrowings under such credit agreements. Such
events of default include: (a) non-payment of credit agreement debt, interest or fees; (b) non-compliance with the terms of the credit
agreement covenants; (c) cross-default to other debt in certain circumstances; (d) bankruptcy; and (e) defaults upon obligations under
Employee Retirement Income Security Act.
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