| Notes to Consolidated Financial Statements |
Becton, Dickinson and Company
|
8 Debt
The components of Short-term debt consisted of:
| |
2006 |
2005 |
|
Loans payable:
Domestic |
$ |
200,000 |
|
$ |
200,000 |
|
| Foreign |
|
126,121 |
|
|
6,125 |
|
| Current portion of long-term debt |
|
101,097 |
|
|
384 |
|
|
| |
$ |
427,218 |
|
$ |
206,509 |
|
|
Domestic loans payable consist of commercial paper. Foreign loans payable consist of short-term borrowings from financial institutions. The weighted average interest rates for Short-term debt were 4.6% and 3.8% at September 30, 2006 and 2005, 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, 2006. In addition, the Company had short-term foreign lines of credit pursuant to informal arrangements of approximately $200,000 at September 30, 2006, of which $175,000 was unused.
Long-Term Debt consisted of:
| |
2006 |
2005 |
|
Domestic notes due through 2013
(average year-end interest rate:
4.2%-2006; 3.2%-2005) |
$ |
10,566 |
|
$ |
10,194 |
|
Foreign notes (average year-end interest rate:
15.0%-2005) |
|
— |
|
|
34 |
|
| 6.90% Notes due October 1, 2006 |
|
— |
|
|
99,937 |
|
| 7.15% Notes due October 1, 2009 |
|
206,144 |
|
|
210,153 |
|
| 4.55% Notes due April 15, 2013 |
|
198,537 |
|
|
198,349 |
|
| 4.90% Notes due April 15, 2018 |
|
206,674 |
|
|
207,116 |
|
| 7.00% Debentures due August 1, 2027 |
|
168,000 |
|
|
168,000 |
|
| 6.70% Debentures due August 1, 2028 |
|
167,050 |
|
|
167,050 |
|
|
| |
$ |
956,971 |
|
$ |
1,060,833 |
|
|
Long-term debt balances as of September 30, 2006 and 2005 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, 2008 to 2011 are as follows: 2008-$1,133; 2009- $414; 2010-$206,580; 2011-$460.
The Company capitalizes interest costs as a component
of the cost of construction in progress. The following is a
summary of interest costs:
| |
2006 |
2005 |
2004 |
|
| Charged to operations |
$ |
66,046 |
|
$ |
55,673 |
|
$ |
44,832 |
|
| Capitalized |
|
19,955 |
|
|
14,770 |
|
|
12,203 |
|
|
| |
$ |
86,001 |
|
$ |
70,443 |
|
$ |
57,035 |
|
|
Interest paid, net of amounts capitalized, was $62,514 in
2006, $68,527 in 2005 and $40,730 in 2004.
|
