E-Z-GO 2007 Annual Report Download - page 76

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Textron Inc.
Note 8. Debt and Credit Facilities
Our debt and credit facilities are summarized below:
December 29, December 30,
(In millions) 2007 2006
Manufacturing group:
Short-term debt:
Revolving lines of credit $ — $ 41
Current portion of long-term debt 355 39
Total short-term debt $ 355 $ 80
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 431 396
5.60% due 2017 350 —
6.625% due 2020 298 295
Other (average rate of 5.39% and 5.27%, respectively) 202 201
2,148 1,759
Current portion of long-term debt (355) (39)
Total long-term debt 1,793 1,720
Total Manufacturing group debt $ 2,148 $ 1,800
Finance group:
Commercial paper* $ 1,447 $ 1,719
Other short-term debt 14 60
Medium-term fi xed-rate and variable-rate notes**:
Due 2007 (weighted-average rate of 5.57%) — 1,118
Due 2008 (weighted-average rate of 4.58% and 4.61%, respectively) 1,259 966
Due 2009 (weighted-average rate of 5.33% and 5.55%, respectively) 1,551 1,562
Due 2010 (weighted-average rate of 4.94% and 4.88%, respectively) 1,913 833
Due 2011 (weighted-average rate of 5.04% and 5.05%, respectively) 592 442
Due 2012 (weighted-average rate of 5.03% and 4.98%, respectively) 219 209
6% Fixed-to-Floating Rate Junior Subordinated Notes 300 —
Fair value adjustments and unamortized discount 16 (47)
Total Finance group debt $ 7,311 $ 6,862
* The weighted-average interest rates on these borrowings before the effect of interest rate exchange agreements were 5.02% and 5.30% at the end of 2007 and
2006, respectively, and 5.16% for the year 2007 and 5.02% for the year 2006.
** At the end of 2007 and 2006, variable-rate notes totaled $2.5 billion and $1.8 billion, respectively.
In 2007, the Finance group issued $300 million of 6% Fixed-to-Floating Rate Junior Subordinated Notes, which are unsecured and rank junior to
all of its existing and future senior debt. The notes mature on February 15, 2067; however, we have the right to redeem the notes at par on or after
February 15, 2017 and are obligated to redeem the notes beginning on February 15, 2042. The Finance group has agreed in a replacement capital
covenant that it will not redeem the notes on or before February 15, 2047 unless it receives a capital contribution from the Manufacturing group
and/or net proceeds from the sale of certain replacement capital securities at specifi ed amounts. Interest on the notes is fi xed at 6% until February
15, 2017 and fl oats at the three-month London Interbank Offered Rate + 1.735% thereafter.
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
December 29, 2007 or December 30, 2006. Our Manufacturing group had no commercial paper outstanding at December 29, 2007 or December
30, 2006 and had a weighted-average interest rate on its commercial paper borrowings throughout the year of 5.20% in 2007 and 5.30% in 2006.
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