 |
Notes to Consolidated Financial Statements
|
|
The components of Short-term debt consisted of:
| |
2005 |
2004 |
|
Loans payable:
Domestic |
$ |
200,000 |
|
$ |
33,100 |
|
| Foreign |
|
6,125 |
|
|
15,729 |
|
| Current portion of long-term debt |
|
384 |
|
|
460 |
|
|
| |
$ |
206,509 |
|
$ |
49,289 |
|
|
Domestic loans payable consist of commercial paper. Foreign loans payable consist of short-term borrowings from financial institutions. The weighted average interest rates for loans payable were 3.8% and 2.1% at September 30, 2005 and 2004, respectively. The Company has in place a syndicated credit facility totaling $900 million in order to provide backup support for our commercial paper program and for other general corporate purposes. This credit facility expires in August 2009. Restrictive covenants include a minimum interest coverage ratio. There were no borrowings outstanding under the facility at September 30, 2005. In addition, the Company had short-term foreign lines of credit pursuant to informal arrangements of approximately $207,000 at September 30, 2005, of which $198,000 was unused.
Long-Term Debt consisted of:
| |
2005 |
2004 |
|
Domestic notes due through 2013
(average year-end interest rate:
3.2%–2005; 2.3%–2004) |
$ |
10,194 |
|
$ |
10,415 |
|
Foreign notes due through 2007
(average year-end interest rate:
15.0%–2005 and 2004) |
|
34 |
|
|
17 |
|
| 6.90% Notes due October 1, 2006 |
|
99,937 |
|
|
102,436 |
|
| 7.15% Notes due October 1, 2009 |
|
210,153 |
|
|
221,381 |
|
| 4.55% Notes due April 15, 2013 |
|
198,349 |
|
|
198,169 |
|
| 4.90% Notes due April 15, 2018 |
|
207,116 |
|
|
199,177 |
|
| 8.70% Debentures due January 15, 2025 |
|
— |
|
|
104,861 |
|
| 7.00% Debentures due August 1, 2027 |
|
168,000 |
|
|
168,000 |
|
| 6.70% Debentures due August 1, 2028 |
|
167,050 |
|
|
167,050 |
|
|
| |
$ |
1,060,833 |
|
$ |
1,171,506 |
|
|
On January 15, 2005, the Company exercised the early redemption option available under the terms of our 8.7% Debentures, due January 15, 2025. Redemption was for the full $100 million in outstanding principal at a price of 103.949%. The Company had utilized an interest rate swap (designated as a fair value hedge) to effectively convert the fixed rate of interest under the debentures to a floating rate. The swap was terminated during the first quarter of 2005, which resulted in a gain, which largely offset the early redemption premium on the debentures.
In March 2003, the Company filed a registration statement with the Securities and Exchange Commission for one or more offerings of debt securities, common stock, warrants, purchase contracts and units, up to a total dollar amount of $750,000, including $100,000 of securities carried forward from a registration filed in October 1997. The remaining availability under the March 2003 registration statement is $350,000.
Long-term debt balances as of September 30, 2005 and 2004 have been impacted by certain interest rate swaps that have been designated as fair value hedges, as discussed in Note 9.
The aggregate annual maturities of long-term debt during the fiscal years ending September 30, 2007 to 2010 are as follows: 2007–$100,344; 2008–$393; 2009–$414; 2010–$210,589.
The Company capitalizes interest costs as a component of the cost of construction in progress. The following is a summary of interest costs:
| |
2005 |
2004 |
2003 |
|
| Charged to operations |
$ |
55,673 |
|
$ |
44,832 |
|
$ |
43,477 |
|
| Capitalized |
|
14,770 |
|
|
12,203 |
|
|
10,346 |
|
|
| |
$ |
70,443 |
|
$ |
57,035 |
|
$ |
53,823 |
|
|
Interest paid, net of amounts capitalized, was $68,527 in 2005, $40,730 in 2004 and $32,649 in 2003.
|
