Xerox 2008 Annual Report Download - page 71

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Notes to the Consolidated
Financial Statements
(in millions, except per share data and
unless otherwise indicated)
Long-term debt at December 31, 2008 and 2007 was as follows:
Weighted Average
Interest Rates at
December 31, 2008 2008 2007
U.S. Operations
Xerox Corporation
Notes due 2008 — $— $2
Notes due 2011 2.83% 1—
Senior Notes due 2009 10.75% 583 600
Euro Senior Notes due 2009 10.62% 317 330
Floating Senior Notes due 2009 2.60% 150 150
Senior Notes due 2010 7.13% 700 700
Notes due 2011 7.01% 50 50
Senior Notes due 2011 6.59% 750 750
Credit Facility due 2012 2.21% 246 600
Senior Notes due 2012 5.59% 1,100 1,100
Senior Notes due 2013 5.65% 400 —
Senior Notes due 2013 7.63% 550 550
Convertible Notes due 2014 9.00% 19 19
Notes due 2016 7.20% 250 250
Senior Notes due 2016 6.48% 700 700
Senior Notes due 2017 6.83% 500 500
Senior Notes due 2018 6.37% 1,000 —
Zero Coupon Notes due 2022 5.77% 433 409
Zero Coupon Notes due 2023 5.41% 253 —
Subtotal $ 8,002 $ 6,710
Xerox Credit Corporation
Notes due 2012 — —25
Notes due 2013 6.42% 10 60
Notes due 2014 6.06% 50 50
Notes due 2018 — —25
Subtotal $ 60 $ 160
Other U.S. Operations
Borrowings secured by finance receivables(1) 5.59% 56 275
Borrowings secured by other assets 10.34% 68
Subtotal $ 62 $ 283
Total U.S. Operations $ 8,124 $ 7,153
International Operations
Euro Bank Facility due 2008 — —177
Other debt due 2009-2010 4.12% 16 36
Total International Operations $ 16 $ 213
Principal debt balance 8,140 7,366
Less: Unamortized discount (6) (13)
Add: SFAS No. 133 fair value adjustments(2) 189 12
Total Debt 8,323 7,365
Less current maturities (1,549) (426)
Total Long-term debt $ 6,774 $6,939
(1) Refer to Note 4 – Receivables, Net for further discussion of borrowings secured by finance receivables, net.
(2) SFAS No. 133 fair value adjustments represent changes in the fair value of hedged debt obligations attributable to movements in benchmark interest rates. SFAS No. 133 requires hedged debt
instruments to be reported at an amount equal to the sum of their carrying value (principal value plus/minus premiums/discounts) and any fair value adjustment.
Xerox 2008 Annual Report 69