Kodak 2002 Annual Report Download - page 54

Financials
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Company had outstanding secured borrowings under the Program
of $74 million.
The cost of the secured borrowings under the Program is
comprised of yield, liquidity, conduit, Program and Program agent
fees. The yield fee is subject to a floating rate, based on the
average of the conduits’ commercial paper rates. The total charge
for these fees is recorded in interest expense. Based on the
outstanding secured borrowings level of $74 million and the
average of the conduits’ commercial paper rates at December 31,
2002, the estimated annualized borrowing cost rate is 2.13%.
Interest expense for the year ended December 31, 2002 was not
material.
The Program agreement contains a number of customary
covenants and termination events. Upon the occurrence of a
termination event, all secured borrowings under the Program
shall be immediately due and payable. The Company was in
compliance with all such covenants at December 31, 2002.
Long-Term Debt
Long-term debt and related maturities and interest rates were as
follows at December 31, 2002 and 2001 (in millions):
Weighted-
Average
Interest
Country Type Maturity Rate 2002 2001
U.S. Term note 2002 6.38% $— $ 150
U.S. Term note 2003 9.38% 144 144
U.S. Term note 2003 7.36% 110 110
U.S. Medium-term 2005 7.25% 200 200
U.S. Medium-term 2006 6.38% 500 500
U.S. Term note 2008 9.50% 34 34
U.S. Term note 2018 9.95% 33
U.S. Term note 2021 9.20% 10 10
China Bank Loans 2002 6.28% —12
China Bank Loans 2003 5.49% 114 96
China Bank Loans 2004 2.42% —190
China Bank Loans 2004 5.58% 252 182
China Bank Loans 2005 5.53% 124 133
Japan Bank Loans 2003 2.51% —42
Qualex Term notes 2003-2005 6.12% 44 —
Chile Bank Loans 2004 2.61% 10 10
Other 66
1,551 1,822
Current portion of long-term debt (387) (156)
Long-term debt, net of current portion $ 1,164 $ 1,666
Annual maturities (in millions) of long-term debt outstanding
at December 31, 2002 are as follows: 2003: $387; 2004: $285;
2005: $332; 2006: $500; 2007: $0; 2008 and beyond: $47.
During the second quarter of 2001, the Company increased
its medium-term note program from $1,000 million to $2,200
million for issuance of debt securities due nine months or more
from date of issue. At December 31, 2002, the Company had debt
securities outstanding of $700 million under this medium-term
note program, with none of this balance due within one year. The
Company has remaining availability of $1,200 million under its
medium-term note program for the issuance of new notes.
NOTE 9: OTHER LONG-TERM LIABILITIES
(in millions) 2002 2001
Deferred compensation $ 160 $ 164
Minority interest in Kodak companies 70 84
Environmental liabilities 148 162
Deferred income taxes 52 81
Other 209 229
Total $ 639 $ 720
The other component above consists of other miscellaneous
long-term liabilities that, individually, are less than 5% of the
total liabilities component in the accompanying Consolidated
Statement of Financial Position, and therefore, have been
aggregated in accordance with Regulation S-X.
NOTE 10: COMMITMENTS AND CONTINGENCIES
Environmental Cash expenditures for pollution prevention and
waste treatment for the Company’s current facilities were as
follows:
(in millions) 2002 2001 2000
Recurring costs for
pollution prevention and waste
treatment $67 $68 $72
Capital expenditures for pollution
prevention and waste
treatment 12 27 36
Site remediation costs 323
Total $82 $ 97 $ 111
At December 31, 2002 and 2001, the Company’s
undiscounted accrued liabilities for environmental remediation
costs amounted to $148 million and $162 million, respectively.
$
$