Tyson Foods 2004 Annual Report Download - page 45

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43
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
Annual maturities of long-term debt for the five fiscal years subsequent
to October 2, 2004, are: 2005 – $338 million; 2006 – $261 million;
2007 – $1,048 million; 2008 – $14 million; 2009 – $91 million.
The revolving credit facilities, senior notes, notes and accounts
receivable securitization contain various covenants, the more
restrictive of which contain a maximum allowed leverage ratio
and a minimum required interest coverage ratio. The Company
is in compliance with all of its covenants at fiscal year end.
Industrial revenue bonds are secured by facilities with a net
book value of $41 million and $159 million at October 2, 2004,
and September 27, 2003, respectively, as three industrial revenue
bonds were paid off in fiscal 2004.
Long-term debt consists of the following:
in millions Maturity 2004 2003
Commercial paper
(2.05% effective rate at 10/2/04 and
1.38% effective rate at 9/27/03) 2009 $86 $32
Revolving Credit Facilities 2006 – 2009 ––
Senior notes and Notes (rates
ranging from 6.13% to 8.25%) 2005 – 2028 2,816 3,316
Accounts Receivable Securitization Debt
(2.51% effective rate at 10/2/04) 2005, 2007 300 –
Institutional notes
(10.84% effective rate at 10/2/04
and 9/27/03) 2005 – 2006 20 40
Leveraged equipment loans (rates
ranging from 4.67% to 5.99%) 2005 – 2008 85 111
Other Various 55 105
Total debt 3,362 3,604
Less current debt 338 490
Total long-term debt $3,024 $3,114
There were no short-term notes payable at October 2, 2004.
Included in current debt at September 27, 2003, are short-term
notes payable totaling $23 million, which carried a weighted
average interest rate of 1.5%.
The Company has fully and unconditionally guaranteed $476 million
of senior notes issued by Tyson Fresh Meats, Inc. (TFM; formerly
known as IBP, inc.), a wholly-owned subsidiary of the Company.
The following condensed consolidating financial information is
provided for the Company, as guarantor, and for TFM, as issuer,
as an alternative to providing separate financial statements for
the issuer.