Raytheon 2011 Annual Report Download - page 102

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
94
Assets and liabilities measured at fair value on a recurring basis consisted of the following at December 31:
(In millions)
Assets
Marketable securities held in trust
Foreign currency forward contracts
Liabilities
Deferred compensation
Foreign currency forward contracts
Level 1
$ 363
12
223
22
Level 2
$ —
—
—
—
Level 3
$ —
—
—
—
Total 2011
$ 363
12
223
22
(In millions)
Assets
Marketable securities held in trust
Foreign currency forward contracts
Liabilities
Deferred compensation
Foreign currency forward contracts
Level 1
$ 344
45
215
41
Level 2
$ —
—
—
—
Level 3
$ —
—
—
—
Total 2010
$ 344
45
215
41
Note 10: Notes Payable and Long-term Debt
Notes payable and long-term debt consisted of the following at December 31:
(In millions, except percentages)
$575 notes due 2014, 1.40%
$400 notes due 2015, 1.625%
$251 notes due 2018, 6.75%
$340 notes due 2018, 6.40%
$500 notes due 2020, 4.40%
$1,000 notes due 2020, 3.125%
$382 notes due 2027, 7.20%
$185 notes due 2028, 7.00%
$600 notes due 2040, 4.875%
$425 notes due 2041, 4.70%
Total debt issued and outstanding
2011
$ 573
397
251
338
496
989
367
184
591
419
$ 4,605
2010
$ —
396
251
338
496
988
366
184
591
—
$ 3,610
The notes are redeemable by the Company at any time at redemption prices based on U.S. Treasury rates.
In the fourth quarter of 2011, we received proceeds of $992 million for the issuance of $1.0 billion fixed rate long-term debt.
In the fourth quarter of 2010, we received proceeds of $1,975 million for the issuance of $2.0 billion fixed rate long-term
debt and exercised our call rights to repurchase, at prices based on fixed spreads to U.S. Treasuries, $678 million of our long-
term debt due 2012 and 2013 at a loss of $73 million pretax, $47 million after-tax, which is included in other (income) expense.
We periodically enter into various interest rate swaps that correspond to a portion of our fixed-rate debt in order to effectively
hedge interest rate risk. In the fourth quarter of 2010, as a result of the repurchase of debt described above, we recorded $15
million of income as a reduction to interest expense resulting from the accelerated amortization of interest rate swaps terminated
in 2009.