E-Z-GO 2002 Annual Report Download - page 54

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December 28, December 29,
(In millions) 2002 2001
Textron Manufacturing:
Short-term debt:
Borrowings under or supported by long-term credit facilities* $ — $ 146
Current portion of long-term debt 25 527
Total short-term debt 25 673
Long-term senior debt:
Medium-term notes due 2010-2011 (average rate - 9.85%) 17 16
6.750% due 2002 — 500
6.375% due 2004 300 300
5.625% due 2005 308 270
6.375% due 2008 300 300
6.50% due 2012 300 —
6.625% due 2020 241 217
Other long-term debt (average rate - 6.49%) 245 185
1,711 1,788
Current portion of long-term debt (25) (527)
Total long-term debt 1,686 1,261
Total Textron Manufacturing debt $ 1,711 $ 1,934
* The weighted average interest rates on these borrowings, before the effect of interest rate exchange agreements,
were 3.2% and 5.6% at year-end 2001 and 2000, respectively. Weighted average interest rates during the years
2002, 2001 and 2000 were 2.5%, 4.3% and 5.7%, respectively.
Textron Manufacturing maintains credit facilities with various banks for both short- and long-term bor-
rowings. Textron Manufacturing has a primary revolving credit facility for $1.5 billion, of which $500 mil-
lion will expire in 2003 and $1 billion will expire in 2007. The $500 million facility includes a one-year term
out option that can effectively extend its expiration into 2004. At December 28, 2002, none of the lines of
credit were used or reserved as support for commercial paper.
December 28, December 29,
(In millions) 2002 2001
Textron Finance:
Borrowings under or supported by credit facilities* $ 917 $ 688
6.25% average rate debt; due 2003 to 2009 2,586 1,512
2.16% average rate variable notes; due 2003 to 2007 1,337 1,988
Total Textron Finance debt $ 4,840 $ 4,188
* The weighted average interest rates on these borrowings, before the effect of interest rate exchange agreements,
were 1.7%, 2.4% and 6.7% at year-end 2002, 2001 and 2000, respectively. Weighted average interest rates during
the years 2002, 2001 and 2000 were 2.1%, 4.1% and 6.4%, respectively.
Textron Finance has bank lines of credit of $1.5 billion, of which $500 million expires in 2003 and $1 bil-
lion expires in 2006. Of these lines, $616 million was not used or reserved as support for commercial
paper or bank borrowings. The $500 million facility includes a one-year term out option that can effec-
tively extend its expiration into 2004. Lending agreements limit Textron Finance’s net assets available for
dividends and other payments to Textron Manufacturing to approximately $449 million of Textron
Finance’s net assets of $1,020 million at the end of 2002. These lending agreements also contain various
restrictive provisions regarding additional debt, minimum net worth, creation of liens and the mainte-
nance of a fixed charges coverage ratio.
The following table shows required payments during the next five years on debt outstanding at the end
of 2002. The payment schedule excludes amounts that are payable under or supported by long-term
credit facilities.
(In millions) 2003 2004 2005 2006 2007
Textron Manufacturing $ 25 $ 318 $ 314 $ 5 $ 37
Textron Finance 1,069 1,407 199 25 726
$1,094 $ 1,725 $ 513 $ 30 $ 763
Note 8
Debt and Credit
Facilities
52