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18. LONG-TERM BORROWINGS AND CAPITAL LEASE OBLIGATIONS
December 31, 2006 2005
U.S. dollar:
Industrial development bonds due 2006-2029
1
$50 $82
3
Medium-term notes due 2013-2048
2
454 451
8.25% notes due 2006
4
—198
3
6.75% notes due 2007
4
485
3
483
3.375% notes due 2007
4
395
3
392
5.75% notes due 2009 200 200
5.88% notes due 2009 408 413
4
6.88% notes due 2009
4
881 880
4.125% notes due 2010
4
884 901
4.75% notes due 2012 400 400
4.875% notes due 2014 496 485
4
5.25% notes due 2016 598 —
6.50% debentures due 2028 298 298
5.60% notes due 2036 395 —
Other loans (average interest rate of 2.0 percent)
3,5
30 548
Foreign currency denominated loans
Australian dollar loans (average interest rates of 6.8 percent)
5
656
Canadian dollar loans (average interest rate of 4.5 percent)
3,5
56 128
Euro loans (average interest rate of 3.8 percent)
3,5
1,034 1,461
Mexican peso loans (average interest rate of 7.5 percent)
3,5
56 185
Taiwan dollar loans (average interest rate of 1.8 percent)
5
—115
Thai baht loans (average interest rate of 4.9 percent)
5
—27
Other loans (various currencies) 36 49
7,162 7,752
Less short-term portion of long-term debt 1,163 986
5,999 6,766
Capital lease obligations 14 17
Total $6,013 $6,783
1Average interest rates on industrial development bonds for December 31, 2006 and 2005, were 6.0 percent and 4.9 percent, respectively.
2Average interest rates on medium-term notes at December 31, 2006 and 2005, were 5.3 percent and 4.8 percent, respectively.
3Includes long-term debt due within one year.
4The company has outstanding interest rate swap agreements with notional amounts totaling $1,800. 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, 2006 and 2005, was $(24) and $(8), respectively.
5Subsidiary borrowings decreased in 2006 primarily due to the repayment of borrowings used 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 $888, $1,490, $884 and $9
for the years 2008, 2009, 2010 and 2011, respectively, and $2,728 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 $6,000 and $6,900 at December 31, 2006 and 2005, respectively.
The change in estimated fair value in 2006 was due to a decrease in long-term debt, primarily subsidiary
borrowings partly offset by the December 2006 issuance of a total of $1,000 in 10 and 30 year notes.
F-29
E. I. du Pont de Nemours and Company
Notes to the Consolidated Financial Statements (continued)
(Dollars in millions, except per share)