COL » Topics » Long-Term Debt

These excerpts taken from the COL 10-K filed Nov 25, 2008.

Long-Term Debt

        In June 2006, the Company entered into a five-year unsecured variable rate loan facility agreement for 20.4 million euros ($25 million). The interest rate is variable at the Euro Interbank Offered Rate plus 35 basis points and interest is payable quarterly. The outstanding balance of this loan facility was $24 million at September 30, 2008 and 2007. The interest rate was 5.31 percent and 5.08 percent at September 30, 2008 and 2007, respectively. The variable rate loan facility contains customary loan covenants, none of which are financial covenants. Failure to comply with customary covenants or the occurrence of customary events of default contained in the agreement would require the repayment of any outstanding borrowings under the agreement.

        In June 2006, the Company entered into a five-year unsecured variable rate loan facility agreement for 11.5 million British pounds ($21 million). This loan facility was repaid in 2007.

64



ROCKWELL COLLINS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

        In addition, the Company has a shelf registration statement filed with the Securities and Exchange Commission, which expires on November 30, 2008, covering up to $750 million in debt securities, common stock, preferred stock or warrants that may be offered in one or more offerings on terms to be determined at the time of sale. On November 20, 2003, the Company issued $200 million of 4.75 percent fixed rate unsecured debt under the shelf registration due December 1, 2013 (the Notes). Interest payments on the Notes are due on June 1 and December 1 of each year. The Notes contain certain covenants and events of default, including requirements that the Company satisfy certain conditions in order to incur debt secured by liens, engage in sale/leaseback transactions, or merge or consolidate with another entity. In 2004, the Company entered into interest rate swap contracts which effectively converted $100 million aggregate principal amount of the Notes to floating rate debt based on six-month LIBOR less 7.5 basis points. See Note 17 for additional information relating to the interest rate swap contracts. At September 30, 2008, $550 million of the shelf registration statement was available for future use.

        Long-term debt and a reconciliation to the carrying amount is summarized as follows:

 
  September 30  
(in millions)
  2008   2007  

Principal amount of Notes due December 1, 2013

  $ 200   $ 200  

Principal amount of variable rate loan facility due June 2011

    24     24  

Fair value swap adjustment (Note 17)

    4     (1 )
           

Long-term debt

  $ 228   $ 223  
           

        The Company was in compliance with all debt covenants at September 30, 2008 and 2007.

        Interest paid on debt for the years ended September 30, 2008, 2007, and 2006 was $20 million, $13 million, and $11 million, respectively.

Long-Term Debt





        In June 2006, the Company entered into a five-year unsecured variable rate loan facility agreement for 20.4 million
euros ($25 million). The interest rate is variable at the Euro Interbank Offered Rate plus 35 basis points and interest is payable quarterly. The outstanding balance of this loan facility was
$24 million at September 30, 2008 and 2007. The interest rate was 5.31 percent and 5.08 percent at September 30, 2008 and 2007, respectively. The variable rate loan
facility contains customary loan covenants, none of which are financial covenants. Failure to comply with customary covenants or the occurrence of customary events of default contained in the
agreement would require the repayment of any outstanding borrowings under the agreement.




        In
June 2006, the Company entered into a five-year unsecured variable rate loan facility agreement for 11.5 million British pounds ($21 million). This loan
facility was repaid in 2007.



64










ROCKWELL COLLINS, INC.



NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)




        In
addition, the Company has a shelf registration statement filed with the Securities and Exchange Commission, which expires on November 30, 2008, covering up to
$750 million in debt securities, common stock, preferred stock or warrants that may be offered in one or more offerings on terms to be determined at the time of sale. On November 20,
2003, the Company issued $200 million of 4.75 percent fixed rate unsecured debt under the shelf registration due December 1, 2013 (the Notes). Interest payments on the Notes are
due on June 1 and December 1 of each year. The Notes contain certain covenants and events of default, including requirements that the Company satisfy certain conditions in order to incur
debt secured by liens, engage in sale/leaseback transactions, or merge or consolidate with another entity. In 2004, the Company entered into interest rate swap contracts which effectively converted
$100 million aggregate principal amount of the Notes to floating rate debt based on six-month LIBOR less 7.5 basis points. See Note 17 for additional information relating to
the interest rate swap contracts. At September 30, 2008, $550 million of the shelf registration statement was available for future use.



        Long-term
debt and a reconciliation to the carrying amount is summarized as follows:






















































































 
 September 30  
(in millions)
 2008  2007  

Principal amount of Notes due December 1, 2013

 $200 $200 

Principal amount of variable rate loan facility due June 2011

  24  24 

Fair value swap adjustment (Note 17)

  4  (1)
      

Long-term debt

 $228 $223 
      




        The
Company was in compliance with all debt covenants at September 30, 2008 and 2007.



        Interest
paid on debt for the years ended September 30, 2008, 2007, and 2006 was $20 million, $13 million, and $11 million, respectively.



This excerpt taken from the COL 10-Q filed Apr 25, 2007.

Long-Term Debt

In June 2006, the Company entered into a five-year unsecured variable rate loan facility agreement for 20.4 million euros ($25 million). The interest rate is variable at the Euro Interbank Offered Rate (EURIBOR) plus 35 basis points and interest is payable quarterly. As of March 31, 2007 the outstanding balance of the loan facility agreement was 17 million euros ($23 million) and the interest rate was 4.25 percent.

In June 2006, the Company entered into a five-year unsecured variable rate loan facility agreement for 11.5 million British pounds ($21 million). The interest rate is variable at the London Interbank Offered Rate (LIBOR) plus 35 basis points and interest is payable quarterly. As of March 31, 2007 the outstanding balance of the loan facility agreement was 3 million British pounds ($5 million) and the interest rate was 5.97 percent.

Long-term debt and a reconciliation to the carrying amount is summarized as follows (in millions):

 

     March 31,
2007
    September 30,
2006
 

Principal amount of notes due December 1, 2013

   $ 200     $ 200  

Principal amount of variable rate loan facilities due June 2011

     28       47  

Fair value swap adjustment (Note 16)

     (2 )     (2 )
                

Long-term debt

   $ 226     $ 245  
                

 

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Table of Contents

ROCKWELL COLLINS, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

 

Interest paid on debt for the six months ended March 31, 2007 and 2006 was $6 million and $5 million, respectively.

 

11. Retirement Benefits

The Company sponsors defined benefit pension (Pension Benefits) and other postretirement (Other Retirement Benefits) plans covering most of its U.S. employees and certain employees in foreign countries which provide monthly pension and other benefits to eligible employees upon retirement. During the first quarter of 2007, the Company changed its measurement date from June 30 to September 30 for all of the Company’s benefit plans. In accordance with the measurement date transition provisions of SFAS 158, the Company remeasured benefit obligations and plan assets as of the beginning of the fiscal year. As a result of this remeasurement, retirement benefit liabilities increased $141 million, primarily due to a decline in the discount rate for Pension Benefits from 6.5 percent to 6.1 percent. The Company also recorded an adjustment to Retained Earnings of $5 million, after tax, which was the net benefit cost for the period from July 1, 2006 to September 30, 2006. The remeasurement will also decrease overall retirement net benefit cost by $1 million for fiscal 2007.

Effective September 30, 2007 pursuant to the recognition provisions of SFAS 158, the Company must recognize a net liability on the Statement of Financial Position to report the funded status of the Company’s retirement benefit plans. If the Company adopted the recognition provisions of SFAS 158 based on the October 1, 2006 measurement of benefit obligations and plan assets, Accumulated Other Comprehensive Loss would increase by $56 million.

This excerpt taken from the COL 10-Q filed Jul 27, 2006.

Long-Term Debt

On June 26, 2006, the Company entered into a five-year unsecured variable rate loan facility agreement for 20.4 million Euros ($25 million). The interest rate is variable at the Euro Interbank Offered Rate (EURIBOR) plus 35 basis points and interest is payable quarterly. As of June 30, 2006 the interest rate was 3.41 percent.

On June 30, 2006, the Company entered into a five-year unsecured variable rate loan facility agreement for 11.5 million British pounds ($21 million). The interest rate is variable at the London Interbank Offered Rate (LIBOR) plus 35 basis points and interest is payable quarterly. As of June 30, 2006 the interest rate was 5.10 percent.

Both of the variable rate loan facilities contain customary loan covenants, none of which are financial covenants. Failure to comply with customary covenants or the occurrence of customary events of default contained in the agreements would require the repayment of any outstanding borrowings under such agreements.

In addition, the Company has a shelf registration statement filed with the Securities and Exchange Commission covering up to $750 million in debt securities, common stock, preferred stock or warrants that may be offered in one or more offerings on terms to be determined at the time of sale. On November 20, 2003, the Company issued $200 million of 4.75 percent fixed rate unsecured debt under the shelf registration due December 1, 2013 (the Notes). Interest payments on the Notes are due on June 1 and December 1 of each year. The Notes contain certain covenants and events of default, including requirements that the Company satisfy certain conditions in order to incur debt secured by liens, engage in sale/leaseback transactions, or merge or consolidate with another entity. The Company entered into interest rate swap contracts which effectively converted $100 million aggregate principal amount of the Notes to floating rate debt based on six-month LIBOR less 7.5 basis points. At June 30, 2006, $550 million of the shelf registration statement was available for future use.

Long-term debt and a reconciliation to the carrying amount is summarized as follows (in millions):

 

     June 30,
2006
    September 30,
2005

Principal amount of Notes due December 1, 2013

   $ 200     $ 200

Principal amount of variable rate loan facilities due June 2011

     46       —  

Fair value swap adjustment (Note 16)

     (5 )     —  
              

Long-term debt

   $ 241     $ 200
              

Interest paid on debt for the nine months ended June 30, 2006 and 2005 was $11 million and $9 million, respectively.

 

9


Table of Contents

ROCKWELL COLLINS, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

 

11. Retirement Benefits
This excerpt taken from the COL 10-Q filed Apr 26, 2006.

Long-term Debt

Long-term debt and a reconciliation to the carrying amount is summarized as follows (in millions):

 

     March 31,
2006
    September 30,
2005

Principal amount of Notes due December 1, 2013

   $ 200     $ 200

Fair value swap adjustment (Note 16)

     (4 )     —  
              

Long-term debt

   $ 196     $ 200
              

Interest paid on debt for the six months ended March 31, 2006 and 2005 was $5 million and $4 million, respectively.

 

8


Table of Contents

ROCKWELL COLLINS, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

 

11. Retirement Benefits
This excerpt taken from the COL 10-Q filed Jan 26, 2006.

Long-term Debt

 

Long-term debt and a reconciliation to the carrying amount is summarized as follows (in millions):

 

     December 31,
2005


    September 30,
2005


Principal amount of Notes due December 1, 2013

   $ 200     $ 200

Fair value swap adjustment (Note 16)

     (1 )     —  
    


 

Long-term debt

   $ 199     $ 200
    


 

 

Interest paid on debt for the three months ended December 31, 2005 and 2004 was $5 million and $4 million, respectively.

 

8


Table of Contents

ROCKWELL COLLINS, INC.

 

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

 

11. Retirement Benefits

 

This excerpt taken from the COL 10-Q filed Jul 28, 2005.

Long-term Debt

 

On November 20, 2003, the Company issued $200 million of 4.75 percent fixed rate unsecured debt due December 1, 2013 (the Notes). Interest payments on the Notes are due on June 1 and December 1 of each year. The Notes contain certain covenants and events of default, including requirements that the Company satisfy certain conditions in order to incur debt secured by liens, engage in sale/leaseback transactions, or merge or consolidate with another entity. In addition, on November 20, 2003, the Company entered into interest rate swap contracts which effectively converted $100 million aggregate principal amount of the Notes to floating rate debt based on six-month LIBOR less 7.5 basis points.

 

Long-term debt and a reconciliation to the carrying amount is summarized as follows (in millions):

 

     June 30,
2005


   September 30,
2004


Principal amount of Notes due December 1, 2013

   $ 200    $ 200

Fair value adjustment (Note 16)

     2      1
    

  

Long-term debt

   $ 202    $ 201
    

  

 

Interest paid on debt for the nine months ended June 30, 2005 and 2004 was $9 million and $7 million, respectively.

 

9


Table of Contents

ROCKWELL COLLINS, INC.

 

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

 

11. Retirement Benefits

 

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