Kodak 2004 Annual Report Download - page 68

Financials
66
E A S T M A N฀ K OD A K ฀ C O M PA N Y
Annual฀maturities฀(in฀millions)฀of฀long-term฀debt฀outstanding฀at฀De-
cember฀31,฀2004฀are฀as฀follows:฀$400฀in฀2005,฀$509฀in฀2006,฀$4฀in฀2007,฀
$250฀in฀2008,฀฀$1฀in฀2009฀and฀$1,088฀in฀2010฀and฀beyond.
In฀May฀2003,฀the฀Company฀issued฀Series฀A฀fixed฀rate฀medium-term฀
notes฀and฀Series฀A฀floating฀rate฀medium-term฀notes฀under฀its฀then฀existing฀
debt฀shelf฀registration฀totaling฀$250฀million฀and฀$100฀million,฀respectively,฀
as฀follows:
(in฀millions)฀ ฀ Annual
Type฀ Principal฀ Interest฀Rate฀ Maturity
Series฀A฀ $฀250฀ 3.625%฀ May฀2008
฀ fixed฀rate฀
Series฀A฀ ฀ 100฀ 3-month฀ November฀2005
฀฀ floating฀rate฀ LIBOR฀plus
฀ ฀ ฀ ฀ 0.55%฀
Total฀ $฀350฀
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฀securi-
ties฀under฀its฀then฀existing฀debt฀shelf฀registration.฀
On฀September฀5,฀2003,฀the฀Company฀filed฀a฀shelf฀registration฀state-
ment฀on฀Form฀S-3฀(the฀new฀debt฀shelf฀registration)฀for฀the฀issuance฀of฀up฀
to฀$2,000฀million฀of฀new฀debt฀securities.฀The฀new฀debt฀shelf฀registration฀
became฀effective฀on฀September฀19,฀2003.฀Pursuant฀to฀Rule฀429฀under฀the฀
Securities฀Act฀of฀1933,฀$650฀million฀of฀remaining฀unsold฀debt฀securities฀
were฀included฀in฀the฀new฀debt฀shelf฀registration,฀giving฀the฀Company฀the฀
ability฀to฀issue฀up฀to฀$2,650฀million฀in฀public฀debt.
On฀October฀10,฀2003,฀the฀Company฀completed฀the฀offering฀and฀sale฀
of฀$500฀million฀aggregate฀principal฀amount฀of฀Senior฀Notes฀due฀2013฀(the฀
Notes),฀which฀was฀made฀pursuant฀to฀the฀Company’s฀new฀debt฀shelf฀regis-
tration.฀The฀remaining฀unused฀balance฀under฀the฀Company’s฀new฀debt฀shelf฀
is฀$2,150฀million.฀Concurrent฀with฀the฀offering฀and฀sale฀of฀the฀Notes,฀on฀
October฀10,฀2003,฀the฀Company฀completed฀the฀private฀placement฀of฀$575฀
million฀aggregate฀principal฀amount฀of฀Convertible฀Senior฀Notes฀due฀2033฀
(the฀Convertible฀Securities)฀to฀qualified฀institutional฀buyers฀pursuant฀to฀Rule฀
฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀ 2004฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀ 2003
฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀ Weighted-Average฀฀฀฀฀฀฀฀฀฀฀฀ Amount฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀ Weighted-Average฀฀฀฀฀฀฀฀฀฀฀ Amount
Country฀ Type฀ Maturity฀ Interest฀Rate฀ Outstanding฀ Interest฀Rate฀฀ Outstanding฀฀฀฀฀฀
U.S.฀ Medium-term฀฀฀฀฀฀฀฀฀฀ 2004฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀ —฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀ $฀ —฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀ 1.72%฀*฀฀฀฀฀฀฀฀฀฀฀฀ $฀ 200฀ ฀฀
U.S.฀฀฀฀฀฀฀฀฀฀฀฀฀฀ Medium-term฀฀฀฀฀฀฀฀฀฀ 2005฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀ 2.84%*฀฀฀฀฀฀฀฀฀฀฀฀฀ ฀ 100฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀ 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.฀฀฀฀฀฀฀฀฀฀฀฀฀฀ Medium-term฀฀฀฀฀฀฀฀฀฀ 2008฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀ 3.63%฀฀฀฀฀฀฀฀฀฀฀฀฀ ฀ 249฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀ 3.63%฀฀฀฀฀฀฀฀฀฀฀฀฀฀ ฀ 249฀ ฀฀฀฀฀฀฀฀฀฀฀฀฀฀
U.S.฀฀฀฀฀฀฀฀฀฀฀฀฀฀ Term฀note฀฀฀฀฀฀฀฀฀฀ 2008฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀—฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀ ฀ —฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀ 9.50%฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀ ฀ 34฀ ฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀
U.S.฀฀฀฀฀฀฀฀฀฀฀฀฀฀ Term฀note฀฀฀฀฀฀฀฀฀฀ 2013฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀ 7.25%฀฀฀฀฀฀฀฀฀฀฀฀฀ ฀ 500฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀ 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฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀ 3.38%฀฀฀฀฀฀฀฀฀฀฀฀฀฀ ฀ 575฀ ฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀
China฀฀฀฀฀฀฀฀฀฀฀฀ Bank฀loans฀฀฀฀฀฀฀฀ 2004฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀ —฀฀฀฀฀฀฀฀฀฀฀฀฀ ฀ —฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀ 5.50%฀฀฀฀฀฀฀฀฀฀฀฀฀฀ ฀ 225฀ ฀฀฀฀
China฀฀฀฀฀฀฀฀฀฀฀฀ Bank฀loans฀฀฀฀฀฀฀฀ 2005฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀ 5.45%฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀ ฀ 88฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀ 5.45%฀฀฀฀฀฀฀฀฀฀฀฀฀฀ ฀ 106฀ ฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀
Qualex฀฀฀฀฀฀฀฀฀฀ Notes฀฀฀฀฀ 2004-2010฀ 5.08%฀฀฀฀฀฀฀฀฀฀฀฀฀฀ ฀ 20฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀ 5.53%฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀ ฀ 49฀ ฀฀฀฀฀฀฀฀฀฀
Other฀ ฀ ฀ ฀ ฀ 7฀ ฀ ฀ ฀ 8฀ ฀฀฀฀฀฀฀฀฀฀฀
฀ ฀ ฀ ฀ $฀2,252฀ ฀ ฀ $฀2,759฀
Current฀portion฀of฀long-term฀debt฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀ ฀ ฀ (400)฀ ฀ ฀ ฀ (457)฀
Long-term฀debt,฀net฀of฀current฀portion฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀ ฀ ฀$1,852฀฀ ฀ ฀ $฀2,302฀
*Represents฀debt฀with฀a฀variable฀interest฀rate.
Financial฀Position,฀and฀the฀proceeds฀from฀the฀sale฀of฀undivided฀interests฀
are฀recorded฀as฀secured฀borrowings.
As฀the฀Program฀is฀renewable฀annually฀subject฀to฀the฀bank’s฀approval,฀
the฀secured฀borrowings฀under฀the฀Program฀are฀included฀in฀short-term฀bor-
rowings.฀At฀December฀31,฀2004,฀the฀Company฀had฀no฀outstanding฀secured฀
borrowings฀under฀the฀Program.
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.฀฀
Interest฀expense฀for฀the฀year฀ended฀December฀31,฀2004฀in฀relation฀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฀se-
cured฀borrowings฀under฀the฀Program฀shall฀be฀immediately฀due฀and฀payable.฀฀
The฀Company฀was฀in฀compliance฀with฀all฀such฀covenants฀at฀December฀31,฀
2004.
Long-Term฀Debt฀฀Long-term฀debt฀and฀related฀maturities฀and฀interest฀
rates฀were฀as฀follows฀at฀December฀31,฀2004฀and฀2003฀(in฀millions):