Northrop Grumman 2013 Annual Report Download - page 74

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NORTHROP GRUMMAN CORPORATION
-64-
Long-term debt consists of the following:
$ in millions
December 31
2013 2012
Fixed-rate notes and debentures, maturing in Interest rate
2014 3.70% $ — $ 350
2015 1.85% —500
2016 7.75% 107 107
2018 1.75% - 6.75% 1,050 200
2019 5.05% 500 500
2021 3.50% 700 700
2023 3.25% 1,050 —
2026 7.75% - 7.88% 527 527
2031 7.75% 466 466
2040 5.05% 300 300
2043 4.75% 950 —
Capital leases Various 35 32
Other Various 245 253
Total long-term debt 5,930 3,935
Less: current portion 25
Long-term debt, net of current portion $5,928 $3,930
Indentures underlying long-term debt issued by the company or its subsidiaries contain various restrictions with
respect to the issuer, including one or more restrictions relating to limitations on liens, sale-leaseback arrangements,
and funded debt of subsidiaries. The majority of these fixed rate notes and debentures are subject to redemption at
the company’s discretion at any time prior to maturity in whole or in part at the principal amount plus any make-
whole premium and accrued and unpaid interest. Interest on these fixed rate notes and debentures are payable semi-
annually in arrears.
Maturities of long-term debt as of December 31, 2013, are as follows:
$ in millions
Year Ending December 31
2014 $ 2
2015 3
2016 110
2017 3
2018 1,053
Thereafter 4,757
Total principal payments 5,928
Unamortized premium on long-term debt, net of discount 2
Total long-term debt $5,930
The premium on long-term debt primarily represents non-cash fair market value adjustments resulting from
acquisitions, which are amortized over the life of the related debt.