Danaher 2011 Annual Report Download - page 85

Table of Contents
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The components of the Company’s debt as of December 31 were as follows ($ in millions):
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U.S. dollar-denominated commercial paper $ 977.3 $180.0
4.5% guaranteed Eurobond Notes due 2013 (€500 million) (the “Eurobond Notes”) 647.3 668.9
Floating rate senior notes due 2013 (the “2013 Notes”) 300.0 —
1.3% senior notes due 2014 (the “2014 Notes”) 400.0 —
2.3% senior notes due 2016 (the “2016 Notes”) 500.0 —
5.625% senior notes due 2018 (the “2018 Notes”) 500.0 500.0
5.4% senior notes due 2019 (the “2019 Notes”) 750.0 750.0
3.9% senior notes due 2021 (the “2021 Notes”) 600.0 —
Zero-coupon LYONs 379.6 573.4
Other 251.0 152.4
Subtotal 5,305.2 2,824.7
Less – currently payable 98.4 40.8
Long-term debt $5,206.8 $2,783.9
The 2013 Notes, the 2014 Notes, the 2016 Notes and the 2021 Notes are collectively referred to as the “2011 Financing Notes”. The 2011 Financing Notes,
the Eurobond Notes, the 2018 Notes and the 2019 Notes are collectively referred to as the “Notes”.
Commercial Paper Program and Credit Facility
The Company primarily satisfies any short-term liquidity needs that are not met through operating cash flow and available cash through issuances of
commercial paper under its U.S. and Euro commercial paper programs. Under these programs, the Company or a subsidiary of the Company, as applicable,
may issue and sell unsecured, short-term promissory notes in an aggregate principal amount not to exceed $2.5 billion. Interest expense on the notes is paid at
maturity and is generally based on the ratings assigned to the Company by credit rating agencies at the time of the issuance and prevailing market rates
measured by reference to LIBOR. Borrowings under the program are available for general corporate purposes, including acquisitions. During 2011, the
Company issued commercial paper under its U.S. program to fund a portion of the purchase price for Beckman Coulter and the retirement of substantially all
of the Beckman Coulter debt (see below). As of December 31, 2011, borrowings outstanding under the Company’s U.S. commercial paper program had a
weighted average interest rate of 0.2% and a weighted average maturity of approximately 30 days. There was no commercial paper outstanding under the Euro
program as of December 31, 2011 or at any other time during 2011. The Company classified its borrowings outstanding under the commercial paper
programs at December 31, 2011 as long-term debt in the accompanying Consolidated Balance Sheet as the Company had the intent and ability, as supported
by availability under the Credit Facility referenced below, to refinance these borrowings for at least one year from the balance sheet date.
Credit support for the commercial paper program is provided by a $2.5 billion unsecured multi-year revolving credit facility with a syndicate of banks that
expires on July 15, 2016 (the “Credit Facility”). The Credit Facility can also be used for working capital and other general corporate purposes. Under the
Credit Facility, borrowings (other than bid loans) bear interest at a rate equal to (at the Company’s option) either (1) a LIBOR-based rate plus a margin that
varies according to the Company’s long-term debt credit rating (the “Eurodollar Rate”), or (2) the highest of (a) the Federal funds rate plus 1/2 of 1%, (b) the
prime rate and (c) the Eurodollar Rate plus 1%, plus in each case a margin that varies according to the Company’s long-term debt credit rating. Under the
Credit Facility, in addition to certain initial fees the Company is obligated to pay a per annum commitment fee that varies according to its long-term debt credit
rating. The Credit Facility requires the Company to maintain a consolidated leverage ratio (as defined in the facility) of 0.65 to 1.00 or less, and also contains
customary representations, warranties, conditions precedent, events of default, indemnities and affirmative and negative covenants. As of December 31, 2011,
no borrowings were outstanding under the Credit Facility and the Company was in compliance with all covenants under the facility. In addition to the Credit
Facility, the Company has entered into reimbursement agreements with various commercial banks to support the issuance of letters of credit.
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Source: DANAHER CORP /DE/, 10-K, February 24, 2012 Powered by Morningstar® Document Research℠
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