Xerox 2004 Annual Report Download - page 34

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As of December 31, 2004 and 2003, debt secured
by finance receivables was approximately 44 percent
and 40 percent of total debt, respectively. The follow-
ing represents our aggregate debt maturity schedule
as of December 31, 2004 ($ in millions):
Bonds/ Secured by
Bank Finance Total
Loans Receivables Debt
2005 $ 1,177 $ 1,897 $ 3,074(1)
2006 36 915 951
2007 528 838 1,366
2008 385 656 1,041
2009 932 27 959
Thereafter 2,630 103 2,733
Total $ 5,688 $4,436 $ 10,124
(1) Quarterly debt maturities (in millions) for 2005 are $681, $1,500, $421 and
$472 for the first, second, third and fourth quarters, respectively.
The following table summarizes our secured and
unsecured debt as of December 31, 2004 and 2003
($ in millions):
2004 2003
Term Loan $300$300
Debt secured by finance receivables 4,436 4,425
Capital leases 58 29
Debt secured by other assets 235 99
Total Secured Debt 5,029 4,853
Senior Notes 2,936 2,137
Subordinated debt 19 19
Other Debt 2,140 4,157
Total Unsecured Debt 5,095 6,313
Total Debt $10,124 $11,166
Liquidity: Wemanage our worldwide liquidity using
internal cash management practices, which are sub-
ject to (1) the statutes, regulations and practices of
each of the local jurisdictions in which weoperate,
(2) the legal requirements of the agreements to which
weare a party and (3) the policies and cooperation of
the financial institutions we utilize to maintain and
provide cash management services.
With $3.2 billion of cash and cash equivalents on
hand at December 31, 2004, borrowing capacity under
our 2003 Credit Facility of $700 million (less $15 mil-
lion utilized for letters of credit) and funding available
through our secured funding programs, we believe
our liquidity (including operating and other cash
flows that we expect to generate) will be sufficient to
meet operating cash flow requirements as they occur
and to satisfy all scheduled debt maturities for at least
the next twelve months. Our ability to maintain posi-
tiveliquidity going forward depends on our ability to
continue to generate cash from operations and access
to the financial markets, both of which are subject to
general economic, financial, competitive, legislative,
regulatory and other market factors that are beyond
our control. As of December 31, 2004, we had an
active shelf registration statement with $1.75 billion of
capacity that enables us to access the market on an
opportunistic basis and offer both debt and equity
securities.
Credit Facility: The 2003 Credit Facility consists of a
$300 million term loan and a $700 million revolving
credit facility which includes a $200 million sub-facility
for letters of credit. Xerox Corporation is the only bor-
rower of the term loan. The revolving credit facility is
available, without sub-limit, to Xerox Corporation and
December 31, 2004 December 31, 2003
Finance Finance
Receivables, Secured Receivables, Secured
Net Debt Net Debt
GE secured loans:
United States $2,711 $2,486 $2,939 $ 2,598
Canada 486 426 528 440
United Kingdom 771 685 719 570
Germany –– 114 84
Total GE encumbered finance receivables, net 3,968 3,597 4,300 3,692
Merrill Lynch Loan – France 368 287 138 92
Asset-backed notes – France 225 148 429 364
DLL – Netherlands, Spain, and Belgium 436 404 335 277
Total encumbered finance receivables, net (1) 4,997 $4,436 5,202 $ 4,425
Unencumbered finance receivables, net 3,500 3,611
Total finance receivables, net (2) $8,497 $8,813
(1) Encumbered finance receivables represent the book value of finance receivables that secure each of the indicated loans.
(2) Includes (i) Billed portion of finance receivables, net (ii) Finance receivables, net and (iii) Finance receivables due after one year, net as included in the
Consolidated Balance Sheets as of December 31, 2004 and 2003.