Boeing 2013 Annual Report Download - page 96

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Note 13 – Debt
On May 3, 2013, we issued $350 of fixed rate senior notes due May 15, 2018 (Fixed Rate Senior Notes)
and $150 of floating rate senior notes due November 3, 2014 (Floating Rate Senior Notes). The Fixed
Rate Senior Notes bear an annual interest rate of 0.95%, and may be redeemed at our option at any time
for a redemption price equal to the full principal amount plus any accrued and unpaid interest and a make-
whole premium. The Floating Rate Senior Notes bear an annual interest rate of three-month LIBOR plus
one basis point, and are not redeemable prior to maturity. The notes are unsecured senior obligations and
rank equally in right of payment with our existing and future unsecured and unsubordinated indebtedness.
The net proceeds of the issuance totaling $494, after deducting underwriting discounts, commissions and
offering expenses, were used to fund BCC.
Interest incurred, including amounts capitalized, was $548, $625 and $683 for the years ended December
31, 2013, 2012 and 2011, respectively. Interest expense recorded by BCC is reflected as a separate line
item on our Consolidated Statements of Operations, and is included in Earnings from operations. Total
Company interest payments were $551, $614 and $626 for the years ended December 31, 2013, 2012
and 2011, respectively.
We have $4,845 currently available under credit line agreements, of which $2,392 is a 364-day revolving
credit facility expiring in November 2014 and $2,453 is a five-year credit facility, of which $2,393 expires
in November 2018 and $60 in November 2017. The 364-day credit facility has a one-year term out option
which allows us to extend the maturity of any borrowings one year beyond the aforementioned expiration
date. We continue to be in full compliance with all covenants contained in our debt or credit facility
agreements.
Short-term debt and current portion of long-term debt at December 31 consisted of the following:
2013 2012
Unsecured debt securities $1,370 $1,224
Non-recourse debt and notes 32 51
Capital lease obligations 68 96
Other notes 93 65
Total $1,563 $1,436
Debt at December 31 consisted of the following:
Unsecured debt securities
2013 2012
Variable rate: 3-month USD LIBOR plus 1 basis point due 2014 $150
0.95% - 5.00% due through 2023 4,832 $4,521
5.80% - 6.88% due through 2043 2,392 3,591
7.25% – 8.75% due throu
g
h 2043 1,672 1,672
Non-recourse debt and notes
4.12% - 4.84% notes due through 2013 13
6.98% - 7.38% notes due through 2021 233 231
Capital lease obligations due through 2017 151 179
Other notes 205 202
Total debt $9,635 $10,409
84