E-Z-GO 2006 Annual Report Download - page 74

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We have incurred asset retirement obligations primarily related to costs to remove and dispose of underground storage tanks and asbestos mate-
rials used in insulation, adhesive fillers and floor tiles. There is no legal requirement to remove these items, and there currently is no plan to
remodel the related facilities or otherwise cause the impacted items to require disposal. As a result, these asset retirement obligations are not
estimable, and in accordance with the provisions of FASB Interpretation No. 47, “Conditional Asset Retirement Obligations,” we have not
recorded a liability.
Note 8. Debt and Credit Facilities
Debt and credit facilities are composed of the following:
December 30, December 31,
(In millions)
2006 2005
Manufacturing group:
Short-term debt:
Revolving lines of credit $ 41 $ 267
Current portion of long-term debt 39 8
Total short-term debt $ 80 $ 275
Long-term senior debt:
Medium-term notes due 2010 to 2011 (average rate of 9.85%) 17 17
6.375% due 2008 300 300
4.50% due 2010 250 250
6.50% due 2012 300 300
3.875% due 2013 396 356
6.625% due 2020 295 260
Other long-term debt (average rate of 5.3% and 6.2%, respectively) 201 184
1,759 1,667
Current portion of long-term debt (39) (8)
Total long-term debt 1,720 1,659
Total Manufacturing group debt $ 1,800 $ 1,934
Finance group:
Borrowings under or supported by credit facilities* $ 1,779 $ 1,200
Fixed-rate debt at average rate of 5.03% and 4.71%, respectively 3,264 3,209
Variable-rate notes at average rate of 5.52% and 4.73%, respectively 1,819 1,011
Total Finance group debt $ 6,862 $ 5,420
* The weighted-average interest rates on these borrowings before the effect of interest rate exchange agreements were 5.3% and 4.4% at the end of 2006 and
2005, respectively, and 5.0% for the year 2006 and 3.3% for the year 2005.
We have a policy of maintaining unused committed bank lines of credit in an amount not less than outstanding commercial paper balances. These
facilities are in support of commercial paper and letters of credit issuances only, and neither of these primary lines of credit was drawn at Decem-
ber 30, 2006 or December 31, 2005. Our Manufacturing group had no commercial paper outstanding at December 30, 2006 or December 31,
2005. The Manufacturing group’s weighted-average interest rate on its commercial paper borrowings throughout the year was 5.3% in 2006 and
3.0% in 2005. Our primary committed credit facilities at December 30, 2006 include the following:
Amount Not
Reserved as
Support for
Commercial Letters of Commercial
Facility Paper Credit Paper and
(In millions)
Amount Outstanding Outstanding Letters of Credit
Manufacturing group - multi-year facility expiring in 2011* $ 1,250 $ — $ 23 $ 1,227
Finance group - multi-year facility expiring in 2011 $ 1,750 $ 1,719 $ 13 $ 18
* Our Finance group is permitted to borrow under this multi-year facility.
53
Textron Inc.