Xerox 2004 Annual Report Download - page 60

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Weighted Average
Interest Rates at
U.S. Operations December 31, 2004 2004 2003
Xerox Corporation
Notes due 2004 —% $—$194
Euro notes due 2004 — —377
Notes due 2006 7.25 15 15
Notes due 2007 7.38 25 25
Notes due 2008 1.31 27 27
Senior Notes due 2009 9.75 627 616
Euro Senior Notes due 2009 9.75 297 272
Senior Notes due 2010 7.13 704 701
Notes due 2011 7.01 50 50
Senior Notes due 2011 6.88 758 —
Senior Notes due 2013 7.63 550 548
Convertible Notes due 2014 9.00 19 19
Notes due 2016 7.20 252 254
2003 Credit Facility 3.92 300 300
Subtotal 3,624 3,398
Xerox Credit Corporation
Yen notes due 2005 1.50 970 936
Yen notes due 2007 2.00 292 281
Notes due 2008 6.50 25 25
Notes due 2012 7.12 125125
Notes due 2013 6.50 59 59
Notes due 2014 6.06 50 50
Notes due 2018 7.00 25 25
Subtotal 1,546 1,501
Other US Operations
Borrowings secured by
finance receivables (1) 4.812,486 2,598
Borrowings secured by
other assets 4.18 257 70
Subtotal 2,743 2,668
Total U.S. operations $ 7,913 $ 7,567
International Operations
Xerox Capital (Europe) plc:
Euros due 2004 —% $—$ 942
Japanese yen due 20051.3097 93
U.S. dollars due 2004-2008 6.25 25 525
Subtotal 1221,560
Other International Operations
Pound Sterling secured
borrowings due 2008 (1) 6.95 685 570
Euro secured borrowings
due 2005-2009 (1) 3.61 839 817
Canadian dollars secured
borrowings due 2004-2007 (1) 5.78426 440
Other debt due 2004-2010 4.93103 170
Subtotal 2,053 1,997
Total international operations 2,175 3,557
Subtotal 10,088 11,124
Less current maturities (3,038) (4,194)
Total long-term debt $7,050 $ 6,930
(1) Refer to Note 3 for further discussion of borrowings secured by finance
receivables, net.
Consolidated Long-Term Debt Maturities:
Scheduled payments due on long-term debt for the
next five years and thereafter follow:
2005 2006 2007 2008 2009 Thereafter Total
$3,038 $951 $1,366 $1,041 $959 $2,733 $10,088
Credit Facility: In June 2003, we entered into the
2003 Credit Facility. The 2003 Credit Facility consists
of a fully drawn $300 term loan and a $700 revolving
credit facility that includes a $200 letter of credit sub-
facility, under which $15 of letters of credit were out-
standing at December 31, 2004. Xerox is the only
borrower of the term loan. The revolving credit facility
is available, without sub-limit, to Xerox and certain
foreign subsidiaries of Xerox, including Xerox Canada
Capital Limited, Xerox Capital (Europe) plc and other
qualified foreign subsidiaries (excluding Xerox, the
“Overseas Borrowers”). The 2003 Credit Facility
matures on September 30, 2008. In conjunction with
the 2003 Credit Facility, debt issuance costs of $29
were deferred. As of December 31, 2004, the $300 term
loan and $15 of letters of credit were outstanding and
there were no outstanding borrowings under the
revolving credit facility. Since inception of the 2003
Credit Facility in June 2003, there havebeen no
borrowings under the revolving credit facility.
Subject to certain limits described in the following
paragraph, the obligations under the 2003 Credit
Facility are secured by liens on substantially all the
assets of Xeroxand each of our U.S.subsidiaries that
have a consolidated net worth from time to time of
$100 or more (the “Material Subsidiaries”), excluding
Xerox Credit Corporation (“XCC”) and certain other
finance subsidiaries, and are guaranteed by certain
Material Subsidiaries. Xerox is required to guarantee
the obligations of the Overseas Borrowers. At
December 31, 2004, Xerox is the only borrower
under the 2003 Credit Facility.
Under the terms of certain of our outstanding
public bond indentures, the amount of obligations
under the 2003 Credit Facility that can be (1) secured
by assets (the “Restricted Assets”) of (a) Xerox and (b)
our non-financing subsidiaries that have a consolidat-
ed net worth of at least $100, without (2) triggering a
requirement to also secure those indentures, is limited
to the excess of (x) 20 percent of our consolidated net
worth (as defined in the public bond indentures) over
(y) the outstanding amount of certain other debt that
is secured by the Restricted Assets. Accordingly, the
amount of 2003 Credit Facility debt secured by the
Restricted Assets will vary from time to time with
changes in our consolidated net worth. The amount of
security provided under this formula accrues ratably
to the benefit of both the term loan and revolving
loans under the 2003 Credit Facility.