DuPont 2005 Annual Report Download - page 86

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E. I. du Pont de Nemours and Company
Notes to Consolidated Financial Statements (continued)
(Dollars in millions, except per share)
21. Long-Term Borrowings and Capital Lease Obligations
December 31, 2005 2004
U.S. dollar:
Industrial development bonds due 2006-2029 1$82
3$ 308
Medium-term notes due 2013-2048 2451 615 3
8.25% notes due 2006 4 198 3205
6.75% notes due 2007 4 483 486
3.375% notes due 2007 4 392 399
5.75% notes due 2009 200 200
5.88% notes due 2009 4 413 432
6.88% notes due 2009 4 880 885
4.125% notes due 2010 4 901 908
4.75% notes due 2012 400 400
4.875% notes due 2014 4 485 507
6.50% debentures due 2028 298 298
Other loans (average interest rate of 4.7 percent) 3, 5 548 –
Other Loans (denominated in foreign currencies)
Australian dollar loans (average interest rates of 5.9 percent) 556 –
Canadian dollar loans (average interest rate of 3.7 percent) 5128 –
Euro loans (average interest rate of 2.6 percent) 3, 5 1,461 –
Mexican peso loans (average interest rate of 9.3 percent) 5185 –
Taiwan dollar loans (average interest rate of 1.8 percent) 5115 –
Thai baht loans (average interest rate of 4.9 percent) 527 –
Other loans (various currencies) 49 39
Capital lease obligations 17 33
$7,769 $5,715
Less short-term portion of long-term debt 986 167
Total $6,783 $5,548
1Average interest rates on industrial development bonds for December 31, 2005 and 2004, were 4.9 percent and 5.8 percent, respectively.
2Average interest rates on medium-term notes at December 31, 2005 and 2004, were 4.8 percent and 4.0 percent, respectively.
3Includes long-term debt due within one year.
4The company has outstanding interest rate swap agreements with notional amounts totaling $2,897. Over the remaining terms of the notes and debentures, the
company will receive fixed payments equivalent to the underlying debt and pay floating payments based on USD LIBOR. The fair value of the swaps at
December 31, 2005 and 2004, was $(8) and $65, respectively.
5Subsidiary borrowings increased in 2005 primarily to support the repatriation of foreign subsidiary earnings under AJCA. The majority of these borrowings will be
repaid in 2008.
Maturities of long-term borrowings, together with sinking fund requirements, are $1,576, $1,058, $1,520 and $928 for the years
2007, 2008, 2009 and 2010, respectively, and $1,684 thereafter.
The estimated fair value of the company’s long-term borrowings, including interest rate financial instruments, based on quoted
market prices for the same or similar issues or on current rates offered to the company for debt of the same remaining
maturities, was $6,900 and $5,900 at December 31, 2005 and 2004, respectively. The change in estimated fair value in 2005 was
due to an increase in long-term debt, primarily subsidiary borrowings.
F-27