Pizza Hut 2010 Annual Report Download - page 184

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Note 10 – Short-term Borrowings and Long-term Debt
2010 2009
Short-term Borrowings
Current maturities of long-term debt $673 $56
Other — 3
$673 $ 59
Long-term Debt
Unsecured International Revolving Credit Facility, expires November 2012 $ — $ —
Unsecured Revolving Credit Facility, expires November 2012 — 5
Senior Unsecured Notes 3,257 2,906
Capital lease obligations (See Note 11) 236 249
Other, due through 2019 (11%) 64 67
3,557 3,227
Less current maturities of long-term debt (673 ) (56)
Long-term debt excluding hedge accounting adjustment 2,884 3,171
Derivative instrument hedge accounting adjustment (See Note 12) 31 36
Long-term debt including hedge accounting adjustment $ 2,915 $ 3,207
Our primary bank credit agreement comprises a $1.15 billion syndicated senior unsecured revolving credit facility (the
“Credit Facility”) which matures in November 2012 and includes 24 participating banks with commitments ranging from
$10 million to $113 million. Under the terms of the Credit Facility, we may borrow up to the maximum borrowing limit,
less outstanding letters of credit or banker’s acceptances, where applicable. At December 25, 2010, our unused Credit
Facility totaled $998 million net of outstanding letters of credit of $152 million. There were no borrowings outstanding
under the Credit Facility at December 25, 2010. The interest rate for borrowings under the Credit Facility ranges from
0.25% to 1.25% over the London Interbank Offered Rate (“LIBOR”) or is determined by an Alternate Base Rate, which is
the greater of the Prime Rate or the Federal Funds Rate plus 0.50%. The exact spread over LIBOR or the Alternate Base
Rate, as applicable, depends on our performance under specified financial criteria. Interest on any outstanding borrowings
under the Credit Facility is payable at least quarterly.
We also have a $350 million, syndicated revolving credit facility (the “International Credit Facility,” or “ICF”) which
matures in November 2012 and includes 6 banks with commitments ranging from $35 million to $90 million. There was
available credit of $350 million and no borrowings outstanding under the ICF at the end of 2010. The interest rate for
borrowings under the ICF ranges from 0.31% to 1.50% over LIBOR or is determined by a Canadian Alternate Base Rate,
which is the greater of the Citibank, N.A., Canadian Branch’s publicly announced reference rate or the “Canadian Dollar
Offered Rate” plus 0.50%. The exact spread over LIBOR or the Canadian Alternate Base Rate, as applicable, depends on
our performance under specified financial criteria. Interest on any outstanding borrowings under the ICF is payable at
least quarterly.
Form 10-K