Emerson 2008 Annual Report Download - page 48

A Powerful Force for Innovation [ 41 ]
In 2000, the Company issued 13 billion Japanese yen of commercial paper and simultaneously entered into a ten-year
interest rate swap, which xed the rate at 2.2 percent.
At year-end 2008, the Company maintained a ve-year revolving credit facility effective until April 2011 amounting to
$2.8 billion to support short-term borrowings and to assure availability of funds at prevailing interest rates. The credit
facility does not contain any nancial covenants and is not subject to termination based on a change in credit ratings or
a material adverse change. There were no borrowings against U.S. lines of credit in the last three years.
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Long-term debt is summarized as follows:
      2007 2008
5 1/2% notes due September 2008 $ 250 –
5% notes due October 2008 175 175
5.85% notes due March 2009 250 250
7 1/8% notes due August 2010 500 500
5.75% notes due November 2011 250 250
4.625% notes due October 2012 250 250
4 1/2% notes due May 2013 250 250
5 5/8% notes due November 2013 250 250
5% notes due December 2014 250 250
4.75% notes due October 2015 250 250
5.125% notes due December 2016 250 250
5.375% notes due October 2017 250 250
5.250% notes due October 2018 – 400
6% notes due August 2032 250 250
Other 198 189
3,623 3,764
Less current maturities 251 467
Total $3,372 3,297
During the second quarter of 2008, the Company issued $400 million of 5.250% notes due October 2018, under a
shelf registration statement led with the Securities and Exchange Commission. During the rst and third quarters of
2007, the Company issued $250 of 5.125%, ten-year notes, and $250 of 5.375%, ten-year notes, respectively, under a
shelf registration statement led with the Securities and Exchange Commission. In 1999, the Company issued $250 of
5.85%, ten-year notes that were simultaneously swapped to U.S. commercial paper rates. The Company terminated the
swap in 2001, establishing an effective interest rate of 5.7 percent.
Long-term debt maturing during each of the four years after 2009 is $599, $30, $256 and $500, respectively. Total
interest paid related to short-term borrowings and long-term debt was approximately $235, $242 and $214 in 2008,
2007 and 2006, respectively.
As of September 30, 2008, the Company could issue up to $1.35 billion in debt securities, preferred stock, common
stock, warrants, share purchase contracts and share purchase units under the shelf registration statement led with the
Securities and Exchange Commission. The Company may sell securities in one or more separate offerings with the size,
price and terms to be determined at the time of sale. The net proceeds from the sale of the securities will be used for
general corporate purposes, which may include, but are not limited to, working capital, capital expenditures, nancing
acquisitions and the repayment of short- or long-term borrowings. The net proceeds may be invested temporarily
until they are used for their stated purpose. The Company intends to le a new shelf registration statement prior to the
expiration of the existing registration in December 2008.