E-Z-GO 2000 Annual Report Download - page 47

Debt at year-end 2000 and 1999 consisted of the following:
December 30, January 1,
(In millions) 2000 2000
Textron Manufacturing:
Short-term debt:
Borrowings under or supported by long-term credit facilities* $ 528 $ 626
Current portion of long-term debt 87 62
Total short-term debt 615 688
Long-term senior debt:
Medium-term notes due 2001-2011 (average rate – 9.66%) 43 63
6.75% due 2002 500 500
6.375% due 2004 300 300
5.63% due 2005 273 –
6.63% due 2020 221 –
Other long-term debt (average rate – 8.39%) 219 278
1,556 1,141
Current portion of long-term debt (87) (62)
Total long-term debt 1,469 1,079
Total Textron Manufacturing debt $2,084 $1,767
*The weighted average interest rates on these borrowings, before the effect of interest rate exchange agreements, were 5.6%,
5.8% and 5.8% at year-end 2000, 1999, and 1998, respectively. Comparable rates during the years 2000, 1999, and 1998 were
5.7%, 4.9% and 5.4%, respectively.
Textron Manufacturing maintains credit facilities with various banks for both short- and long-term
borrowings. At year-end, Textron Manufacturing had (a) a $1.0 billion domestic credit agreement
with 22 banks available on a fully revolving basis until April 1, 2003, (b) $71 million in multi-currency
credit agreements with two banks available through December 29, 2002 and (c) $209 million in
other credit facilities available with various banks. At year-end 2000, $767 million of the credit facilities
was not used or reserved as support for commercial paper or bank borrowings.
December 30, January 1,
(In millions) 2000 2000
Textron Finance:
Senior:
Borrowings under or supported by credit facilities* $ 966 $1,339
6.89% average rate debt; due 2001 to 2004 1,432 1,507
6.96% average rate variable notes; due 2001 to 2004 2,269 1,705
Total Textron Finance debt $4,667 $4,551
*The weighted average interest rates on these borrowings, before the effect of interest rate exchange agreements, were 6.7%,
6.4% and 6.3% at year-end 2000, 1999 and 1998, respectively. Comparable rates during the years 2000, 1999 and 1998 were
6.4%, 5.4% and 5.8%, respectively.
Textron Finance has lines of credit with various banks aggregating $1.4 billion at year-end 2000,
of which $444 million was not used or reserved as support for commercial paper or bank borrow-
ings. Lending agreements limit Textron Finance’s net assets available for cash dividends and other
payments to Textron Manufacturing to approximately $351 million of Textron Finance’s net assets of
$910 million at year-end 2000. Textron Finance’s loan agreements also contain provisions regarding
additional debt, creation of liens or guarantees and the making of investments.
The following table shows required payments during the next five years on debt outstanding at
the end of 2000. The payments schedule excludes amounts that are payable under credit facilities
and revolving credit agreements.
(In millions) 2001 2002 2003 2004 2005
Textron Manufacturing $ 87 $ 510 $ 5 $304 $276
Textron Finance 1,098 1,580 385 638 –
$1,185 $2,090 $390 $942 $276
Textron Manufacturing has agreed to cause Textron Finance to maintain certain minimum levels
of financial performance. No payments from Textron Manufacturing were necessary in 2000, 1999,
or 1998 for Textron Finance to meet these standards.
Debt and Credit Facilities8
45 TEXTRON 2000 ANNUAL REPORT