|
|
 | | | |
- close
- close
- close
- close
| |||||||||
This excerpt taken from the LLY 10-K filed Feb 22, 2010. Note 7: Borrowings
Long-term debt at December 31 consisted of the following:
In March 2009, we issued $2.40 billion of fixed-rate notes
with interest to be paid semi-annually. The $400.0 million
of floating rate bonds outstanding at December 31, 2008
were repaid with proceeds from this issuance.
The 6.55 percent Employee Stock Ownership Plan (ESOP)
debentures are obligations of the ESOP but are shown on the
consolidated balance sheet because we guarantee them. The
principal and interest on the debt are funded by contributions
from us and by dividends received on certain shares held by the
ESOP. Because of the amortizing feature of the ESOP debt,
bondholders will receive both interest and principal payments
each quarter. The balance was $72.8 million and
$81.9 million at December 31, 2009 and 2008,
respectively, and is included in Other in the table above.
The aggregate amounts of maturities on long-term debt for the
next five years are as follows: 2010, $20.3 million; 2011,
$15.8 million; 2012, $1.51 billion; 2013,
$13.9 million; and 2014, $1.01 billion.
At December 31, 2009 and 2008, short-term borrowings
included $7.1 million and $5.43 billion, respectively,
of notes payable to banks and commercial paper. Commercial paper
was issued in late 2008 for the acquisition of ImClone. At
December 31, 2009, we have $1.24 billion of unused
committed bank credit facilities, $1.20 billion of which
backs our commercial paper program and matures in May, 2011.
Compensating balances and commitment fees are not material, and
there are no conditions that are probable of occurring under
which the lines may be withdrawn.
60
We have converted approximately 65 percent of all
fixed-rate debt to floating rates through the use of interest
rate swaps. The weighted-average effective borrowing rates based
on debt obligations and interest rates at December 31, 2009
and 2008, including the effects of interest rate swaps for
hedged debt obligations, were 3.07 percent and
4.77 percent, respectively.
In 2009, 2008, and 2007, cash payments of interest on borrowings
totaled $205.9 million, $203.1 million, and
$159.2 million, respectively, net of capitalized interest.
In accordance with the requirements of derivatives and hedging
guidance, the portion of our fixed-rate debt obligations that is
hedged is reflected in the consolidated balance sheets as an
amount equal to the sum of the debt’s carrying value plus
the fair value adjustment representing changes in fair value of
the hedged debt attributable to movements in market interest
rates subsequent to the inception of the hedge.
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| |||||||
