Raytheon 2011 Annual Report Download - page 103
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
95
The adjustments to the principal amounts of long-term debt were as follows at December 31:
(In millions)
Principal
Unamortized issue discounts
Unamortized interest rate hedging costs
Total
2011
$ 4,658
(40)
(13)
$ 4,605
2010
$ 3,658
(35)
(13)
$ 3,610
The aggregate amounts of principal payments due on long-term debt for the next five years are:
(In millions)
2012
2013
2014
2015
2016
$ —
—
575
400
—
In December 2011, we entered into a $1.4 billion revolving credit facility maturing in 2016, replacing the previous $500 million
and $1.0 billion credit facilities, both scheduled to mature in November 2012.
Under the $1.4 billion credit facility we can borrow, issue letters of credit and backstop commercial paper. Borrowings under
this facility bear interest at various rate options, including LIBOR plus a margin based on our credit ratings. Based on our
credit ratings at December 31, 2011, borrowings would generally bear interest at LIBOR plus 90 basis points. The credit
facility is comprised of commitments from approximately 25 separate highly rated lenders, each committing no more than
10% of the facility. As of December 31, 2011 and December 31, 2010, there were no borrowings outstanding under this credit
facility or the previous credit facilities. However, we had $3 million of outstanding letters of credit at December 31, 2011 and
2010, which effectively reduced our borrowing capacity under this credit facility and our previous facilities by those same
amounts.
Under the $1.4 billion credit facility we must comply with certain covenants, including a ratio of total debt to total capitalization
of no more than 60%. We were in compliance with the credit facility covenants during 2011. Our ratio of total debt to total
capitalization, as those terms are defined in the credit facility was 35.6% at December 31, 2011. We are providing this ratio,
which is a financial covenant under our credit facility, as this metric is used by our lenders to monitor the Company's leverage
and is also a threshold that limits our ability to utilize this facility. We were also required to comply with certain covenants
in connection with our previous credit facilities and were in compliance with such covenants in 2010.
Certain of our foreign subsidiaries maintain revolving bank lines of credit to provide them with a limited amount of short-
term liquidity. Other uncommitted bank lines totaled approximately $2 million at December 31, 2011 and December 31,
2010. There were no amounts outstanding under these lines of credit at December 31, 2011 and December 31, 2010.
Compensating balance arrangements are not material.
Total cash paid for interest on notes payable and long-term debt was $167 million, $134 million and $147 million in 2011,
2010 and 2009, respectively.