3M 2007 Annual Report Download - page 69

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63
NOTE 10. Long-Term Debt and Short-Term Borrowings
Long-term debt and short-term borrowings as of December 31 consisted of the following (with interest rates as of
December 31, 2007):
Long-Term Debt Currency/ Effective
(Millions) Fixed vs. Interes
t
Maturity
Description / Principal Amount Floating* Rate* Date 2007 2006
Eurobond (625 million Euros) Euro Fixed 4.98% 2014 $ 919 $ –
30-year bond ($750 million) USD Fixed 5.73% 2037 747 –
Eurobond (400 million Euros) Euro Floating 4.45% 2014 591 –
Medium-term note ($500 million) USD Fixed 4.67% 2012 500 –
Medium-term note ($400 million) USD Floating 4.84% 2009 408 400
Dealer remarketable securities ($350 million) USD Fixed 5.83% 2010 350 350
30-year debenture ($330 million) USD Fixed 5.75% 2028 350 354
Convertible notes ($252 million) USD Fixed 0.50% 2032 222 542
Floating rate note ($100 million) USD Floating 4.56% 2041 100 100
ESOP debt guarantee ($87 million) USD Fixed 5.62% 2008-2009 87 127
Floating rate note ($62 million) USD Floating 4.64% 2044 62 62
Other borrowings Various 4.27% 2008-2040 223 226
Total long-term debt $4,559 $2,161
Less: current portion of long-term debt 540 1,114
Long-term debt (excluding current portion) $4,019 $1,047
Short-Term Borrowings and
Current Portion of Long-Term Debt Effective
(Millions) Interest Rate* 2007 2006
Current portion of long-term debt 5.37% $540 $1,114
Non-U.S. dollar commercial paper 4.60% 349 314
U.S. dollar commercial paper – 1,035
Other borrowings 7.57% 12 43
Total short-term borrowings and
current portion of long-term debt $901 $2,506
Weighted-Average Effective Interest Rate*
Total Excluding ESOP Debt
At December 31 2007 2006 2007 2006
Short-term 5.10% 4.65% 5.07% 4.63%
Long-term 4.48% 3.67% 4.47% 3.49%
* Debt tables reflect the effects of interest rate swaps at December 31; weighted-average effective interest rate table reflects the
combined effects of interest rate and currency swaps at December 31.
Maturities of long-term debt for the five years subsequent to December 31, 2007 are as follows (in millions):
2008 2009 2010 2011 2012 Thereafter Total
$540 $477 $24 $ – $500 $3,018 $4,559
Long-term debt payments due in 2008 include $350 million of dealer remarketable securities (final maturity 2010) and
$62 million of floating rate notes (final maturity 2044). These securities are classified as current portion of long-term
debt as the result of put provisions associated with these debt instruments.
The ESOP debt is serviced by dividends on stock held by the ESOP and by Company contributions. These
contributions are not reported as interest expense, but are reported as an employee benefit expense in the
Consolidated Statement of Income. Other borrowings includes debt held by 3M’s international companies and floating