Kodak 2003 Annual Report Download - page 54

Financials
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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’ com-
mercial paper rates. The total charge for these fees is recorded in interest
expense. Interest expense for the year ended December 31, 2003 in rela-
tion to the Program 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, 2003.
Long-Term Debt Long-term debt and related maturities and interest
rates were as follows at December 31, 2003 and 2002 (in millions):
2003 2002
Weighted-Average Amount Weighted-Average Amount
Country Type Maturity Interest Rate Outstanding Interest Rate Outstanding
U.S. Term note 2003 — $ — 9.38% $ 144
U.S. Term note 2003 — — 7.36% 110
U.S. Term note 2004 1.72%* 200 — —
U.S. Term note 2005 1.73%* 100 ——
U.S. Medium-term 2005 7.25% 200 7.25% 200
U.S. Medium-term 2006 6.38% 500 6.38% 500
U.S. Term note 2008 3.63% 249 ——
U.S. Term note 2008 9.50% 34 9.50% 34
U.S. Term note 2013 7.25% 500 ——
U.S. Term note 2018 9.95% 3 9.95% 3
U.S. Term note 2021 9.20% 10 9.20% 10
U.S. Convertible 2033 3.38% 575 ——
China Bank loans 2003 ——5.49% 114
China Bank loans 2004 5.50% 225 5.58% 252
China Bank loans 2005 5.45% 106 5.53% 124
Qualex Term notes 2004-2008 5.53% 49 6.12% 44
Chile Bank loans 2004 ——2.61% 10
Other 8 6
$ 2,759 $ 1,551
Current portion of long-term debt (457) (387)
Long-term debt, net of current portion $ 2,302 $ 1,164
*Represents debt with a variable interest rate.
Annual maturities (in millions) of long-term debt outstanding at
December 31, 2003 are as follows: $457 in 2004, $422 in 2005, $507 in
2006, $2 in 2007, $283 in 2008, and $1,088 in 2009 and beyond.
In May 2003, the Company issued Series A fixed rate notes and
Series A floating rate notes under its then existing debt shelf registration
totaling $250 million and $300 million, respectively, as follows:
(in millions)
Annual
Interest
Type Principal Rate Maturity
Series A
fixed rate $ 250 3.625% May 2008
Series A 3-month
floating rate 200 LIBOR plus November 2004
0.55%
Series A 3-month
floating rate 100 LIBOR plus November 2005
0.55%
Total $ 550
Interest on the notes will be paid quarterly, and the Company may
not redeem or repay these notes prior to their stated maturities. After
these issuances, the Company had $650 million of remaining unsold debt
securities under its then existing debt shelf registration.