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73
NOTE 10. Long-Term Debt and Short-Term Borrowings
The following debt tables reflect interest rates, including the effects of interest rate swaps, as of December 31, 2010.
Long-term debt and short-term borrowings as of December 31 consisted of the following:
Long-Term Debt
(Millions)
Description / 2010 Principal Amount
Currency/
Fixed vs.
Floating
Effective
Interest
Rate
Final
Maturity
Date
2010
2009
Eurobond (775 million Euros) ................
Euro Fixed
4.30
%
2014
$
1,055
$
898
Medium-term note ($850 million) .............
USD Fixed
4.42
%
2013
849
849
Medium-term note ($800 million) .............
USD Floating
3.24
%
2011
806
801
30-year bond ($750 million) ..................
USD Fixed
5.73
%
2037
747
747
Eurobond (250 million Euros) ................
Euro Floating
1.18
%
2014
357
623
Medium-term note ($500 million) .............
USD Fixed
4.67
%
2012
500
500
30-year debenture ($330 million) .............
USD Fixed
6.01
%
2028
349
350
Dealer Remarketable Securities ..............
USD Fixed
—
%
2010
—
350
Convertible notes ($252 million) ..............
USD Fixed
0.50
%
2032
226
225
Japan borrowing (11.6 billion Japanese Yen) . .
JPY Floating
0.76
%
2011
142
—
Canada borrowing (100.5 million Canadian Dollar)
CAD Floating
1.80
%
2012
101
—
Floating rate note ($100 million) ..............
USD Floating
0.00
%
2041
100
100
Floating rate note ($60 million) ...............
USD Floating
0.00
%
2044
60
60
Other borrowings ..........................
Various
0.08
%
2011-2040
76
116
Total long-term debt ........................
$
5,368
$
5,619
Less: current portion of long-term debt ........
1,185
522
Long-term debt (excluding current portion) .....
$
4,183
$
5,097
Short-Term Borrowings and Current Portion of Long-Term Debt
(Millions)
Effective
Interest Rate
2010
2009
Current portion of long-term debt ..................................................
2.41
%
$
1,185
$
522
U.S. dollar commercial paper ........................................................
—
—
—
Other borrowings ...........................................................................
2.47
%
84
91
Total short-term borrowings and current portion of long-term debt
$
1,269
$
613
The following weighted-average effective interest rate table reflects the combined effects of interest rate and
currency swaps at December 31, 2010 and 2009.
Weighted-Average Effective Interest Rate
Total
At December 31
2010
2009
Short-term ..............................................................
2.41
%
4.51
%
Long-term ...............................................................
4.22
%
4.04
%
Maturities of long-term debt for the five years subsequent to December 31, 2010 are as follows (in millions):
2011
2012
2013
2014
2015
After 2015
Total
$
1,185
$
752
$
922
$
1,413
$
—
$
1,096
$
5,368
The Company’s $350 million of Dealer Remarketable Securities matured in December 2010. These securities were
originally issued in December 2000. Long-term debt payments due in 2011 include $160 million of floating rate notes.
The floating rate notes are classified as current portion of long-term debt as the result of put provisions associated
with these debt instruments. Additionally, payments due in 2012 include the $226 million carrying amount of
Convertible Notes, and payments due in 2013 include $73 million of floating rate notes, as a result of put provisions.