Chevron 2004 Annual Report Download - page 70

68 CHEVRONTEXACO CORPORATION 2004 ANNUAL REPORT


At December 31
 2003
Commercial paper*  $ 4,078
Notes payable to banks and others with
originating terms of one year or less  190
Current maturities of long-term debt  863
Current maturities of long-term
capital leases  71
Redeemable long-term obligations
Long-term debt  487
Capital leases  299
Subtotal  5,988
Reclassified to long-term debt  (4,285)
Total short-term debt   $ 1,703
* Weighted-average interest rates at December 31, 2004 and 2003, were 1.98 per-
cent and 1.01 percent, respectively.
Redeemable฀long-term฀obligations฀consist฀primarily฀of฀
tax-exempt฀variable-rate฀put฀bonds฀that฀are฀included฀as฀current฀
liabilities฀because฀they฀become฀redeemable฀at฀the฀option฀of฀the฀
bondholders฀during฀the฀year฀following฀the฀balance฀sheet฀date.
The฀company฀periodically฀enters฀into฀interest฀rate฀swaps฀on฀a฀
portion฀of฀its฀short-term฀debt.฀See฀Note฀8฀beginning฀on฀page฀59฀for฀
information฀concerning฀the฀company’s฀debt-related฀derivative฀
activities.
At฀December฀31,฀2004,฀the฀company฀had฀$4,735฀of฀committed฀
credit฀facilities฀with฀banks฀worldwide,฀which฀permit฀the฀company฀
to฀refinance฀short-term฀obligations฀on฀a฀long-term฀basis.฀The฀
facilities฀support฀the฀company’s฀commercial฀paper฀borrowings.฀
Interest฀on฀borrowings฀under฀the฀terms฀of฀specific฀agreements฀
may฀be฀based฀on฀the฀London฀Interbank฀Offered฀Rate฀or฀bank฀
prime฀rate.฀No฀amounts฀were฀outstanding฀under฀these฀credit฀
agreements฀during฀2004฀or฀at฀year-end.
At฀December฀31,฀2004฀and฀2003,฀the฀company฀classified฀
$4,735฀and฀$฀4,285,฀respectively,฀of฀short-term฀debt฀as฀long-term.฀
Settlement฀of฀these฀obligations฀is฀not฀expected฀to฀require฀the฀use฀
of฀working฀capital฀in฀2005,฀as฀the฀company฀has฀both฀the฀intent฀
and฀the฀ability฀to฀refinance฀this฀debt฀on฀a฀long-term฀basis.


ChevronTexaco฀has฀three฀“shelf”฀registrations฀on฀file฀with฀the฀
SEC฀that฀together฀would฀permit฀the฀issuance฀of฀$3,800฀of฀debt฀
securities฀pursuant฀to฀Rule฀415฀of฀the฀Securities฀Act฀of฀1933.฀The฀
company’s฀long-term฀debt฀outstanding฀at฀year-end฀2004฀and฀
2003฀was฀as฀follows:
At December 31
 2003
3.5% notes due 2007   $ 1,993
3.375% notes due 2008   749
5.5% note due 2009  431
7.327% amortizing notes due 20141  360
9.75% debentures due 2020  250
5.7% notes due 2008  220
8.625% debentures due 2031  199
8.625% debentures due 2032  199
7.5% debentures due 2043  198
8.625% debentures due 2010  150
8.875% debentures due 2021  150
7.09% notes due 2007  150
8.25% debentures due 2006  150
6.625% notes due 2004  499
8.11% amortizing notes due 20042  240
6.0% notes due 2005  299
Medium-term notes, maturing from
2017 to 2043 (7.1%)3  210
Other foreign currency obligations (4.0%)3  52
Other long-term debt (4.3%)3  730
Total including debt due within one year  7,229
Debt due within one year  (863)
Reclassified from short-term debt  4,285
Total long-term debt  $ 10,651
1 Guarantee of ESOP debt.
2
Debt assumed from ESOP in 1999.
3
Less than $150 individually; weighted-average interest rates at December 31, 2004.
Consolidated฀long-term฀debt฀maturing฀after฀December฀31,฀
2004,฀is฀as฀follows:฀2005฀–฀$333;฀2006฀–฀$149;฀2007฀–฀$2,178;฀2008฀
–฀$1,061;฀and฀2009฀–฀$455;฀after฀2009฀–฀$1,639.
In฀2004,฀the฀company฀repaid฀$500฀of฀6.625฀percent฀notes฀
and฀$240฀of฀8.11฀percent฀notes฀that฀matured฀during฀the฀year.฀
Other฀repayments฀during฀2004฀include฀$300฀of฀6฀percent฀notes฀
due฀June฀2005฀and฀$265฀in฀various฀Philippine฀debt.
In฀January฀2005,฀the฀company฀contributed฀$98฀to฀permit฀the฀
ESOP฀to฀make฀a฀principal฀payment฀of฀$113.


FASB฀Interpretation฀No.฀46,฀“Consolidation฀of฀Variable฀Interest฀
Entities”฀(FIN฀46)฀FIN฀46฀was฀issued฀in฀January฀2003฀and฀estab-
lished฀standards฀for฀determining฀under฀what฀circumstances฀a฀
variable฀interest฀entity฀(VIE)฀should฀be฀consolidated฀by฀its฀pri-
mary฀beneficiary.฀FIN฀46฀also฀requires฀disclosures฀about฀VIEs฀
that฀the฀company฀is฀not฀required฀to฀consolidate฀but฀in฀which฀it฀
has฀a฀significant฀variable฀interest.฀In฀December฀2003,฀the฀FASB฀
issued฀FIN฀46-R,฀which฀not฀only฀included฀amendments฀to฀FIN฀
46,฀but฀also฀required฀application฀of฀the฀interpretation฀to฀all฀
affected฀entities฀no฀later฀than฀March฀31,฀2004,฀for฀calendar฀year฀฀
reporting฀companies.฀Prior฀to฀this฀requirement,฀companies฀were฀
required฀to฀apply฀the฀interpretation฀to฀special-purpose฀entities฀
by฀December฀31,฀2003.฀The฀full฀adoption฀of฀the฀interpretation฀as฀
of฀March฀31,฀2004,฀including฀the฀requirement฀relating฀to฀special-
purpose฀entities,฀did฀not฀have฀an฀impact฀on฀the฀company’s฀results฀
of฀operations,฀financial฀position฀or฀liquidity.
FASB฀Staff฀Position฀No.฀FAS฀106-2,฀“Accounting฀and฀Disclosure฀
Requirements฀Related฀to฀the฀Medicare฀Prescription฀Drug,฀Improve-
ment฀and฀Modernization฀Act฀of฀2003”฀(FSP฀FAS฀106-2)฀ In฀
December฀2003,฀the฀Medicare฀Prescription฀Drug,฀Improvement฀
and฀Modernization฀Act฀of฀2003฀(The฀Act)฀became฀law.฀The฀Act฀
Notes to the Consolidated Financial Statements
Millions฀of฀dollars,฀except฀per-share฀amounts