Raytheon 2012 Annual Report Download - page 106

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
98
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) 2012 2011
$575 notes due 2014, 1.40% $— $ 573
$400 notes due 2015, 1.625% —397
$251 notes due 2018, 6.75% 251 251
$340 notes due 2018, 6.40% 338 338
$500 notes due 2020, 4.40% 497 496
$1,000 notes due 2020, 3.125% 991 989
$1,100 notes due 2022, 2.50% 1,092 —
$382 notes due 2027, 7.20% 368 367
$185 notes due 2028, 7.00% 184 184
$600 notes due 2040, 4.875% 591 591
$425 notes due 2041, 4.70% 419 419
Total debt issued and outstanding $ 4,731 $ 4,605
The notes are redeemable by us at any time at redemption prices based on U.S. Treasury rates.
In the fourth quarter of 2012, we received proceeds of $1,092 million for the issuance of $1.1 billion fixed rate long-term
debt and exercised our call rights to repurchase, at prices based on fixed spreads to the U.S. Treasuries, $970 million of our
long-term debt due 2014 and 2015 at a loss of $29 million pretax, $19 million after-tax, which is included in other (income)
expense, net.
In the fourth quarter of 2011, we received proceeds of $992 million for the issuance of $1.0 billion fixed rate long-term debt.
We may enter into interest rate swap agreements with commercial and investment banks to manage interest rates associated
with our financing arrangements.
The adjustments to the principal amounts of long-term debt were as follows at December 31:
(In millions) 2012 2011
Principal $ 4,783 $ 4,658
Unamortized issue discounts (40)(40)
Unamortized interest rate hedging costs (12)(13)
Total $ 4,731 $ 4,605
There are no aggregate amounts of principal payments due on long-term debt for the next five years.
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, 2012, 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, 2012 and December 31, 2011, there were no borrowings outstanding under this credit
facility. However, we had $2 million and $3 million of outstanding letters of credit at December 31, 2012 and December 31,
2011, respectively, which effectively reduced our borrowing capacity under this credit facility by those same amounts.