E-Z-GO 2008 Annual Report Download - page 78

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Textron Inc.
Note 8. Debt and Credit Facilities
Our debt and credit facilities are summarized below:
January 3, December 29,
(In millions) 2009 2007
Manufacturing group:
Short-term debt:
Commercial paper $ 867 $ —
Current portion of long-term debt 9 355
Total short-term debt 876 355
Long-term senior debt:
Medium-term notes due 2010 to 2011 (average rate of 9.85%) 17 17
6.375% due 2008 — 300
4.50% due 2010 250 250
6.50% due 2012 300 300
3.875% due 2013 429 431
5.60% due 2017 350 350
6.625% due 2020 219 298
Other (average rate of 3.93% and 5.40%, respectively) 137 200
1,702 2,146
Current portion of long-term debt (9) (355)
Total long-term debt 1,693 1,791
Total Manufacturing group debt $ 2,569 $ 2,146
Finance group:
Commercial paper $ 743 $ 1,447
Other short-term debt 25 14
Medium-term fixed-rate and variable-rate notes*:
Due 2008 (weighted-average rate of 4.58%) — 1,259
Due 2009 (weighted-average rate of 4.07% and 5.33%, respectively) 1,534 1,551
Due 2010 (weighted-average rate of 3.85% and 4.94%, respectively) 2,315 1,913
Due 2011 (weighted-average rate 4.42% and 5.04%, respectively) 727 592
Due 2012 (weighted-average rate of 4.43% and 4.39%, respectively) 52 42
Due 2013 and thereafter (weighted-average rate of 4.87% and 5.19%, respectively) 730 177
Securitized on-balance sheet debt, with amortization beginning in 2009, 3.09% 853 —
6% Fixed-to-Floating Rate Junior Subordinated Notes 300 300
Fair value adjustments and unamortized discount 109 16
Total Finance group debt $ 7,388 $ 7,311
* At the end of 2008 and 2007, variable-rate notes totaled $2.5 billion.
The Manufacturing group had a year-end average interest rate on commercial paper borrowings of 6.4% and a weighted-average interest rate
throughout the year of 4.3% in 2008 and 5.20% in 2007. The Finance group had an average interest rate on commercial paper borrowings of
5.64% at the end of 2008 and 5.02% at the end of 2007, and a weighted-average interest rate throughout the year of 3.63% in 2008 and 5.16%
in 2007.
In December 2008, the Finance Group amended the terms of its Aviation Finance securitization resulting in the consolidation of the special
purpose entity, which holds finance receivables previously sold as well as $553 million of third-party notes under a revolving credit facility. These
third-party notes are reflected within securitized on-balance sheet debt.
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
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