DTE Energy 2010 Annual Report Download - page 26

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24
The following table shows the scheduled debt maturities and sinking fund requirements, excluding any unamortized discount or
premium on debt:
(in Millions)
2011
2012
2013
2014
2015
2016 and
thereafter
Total
Amount to mature
$ —
$40
$ 60
$ 80
$ 140
$ 570
$ 890
Preferred and Preference Securities — Authorized and Unissued
At December 31, 2010, MichCon had 7 million shares of preferred stock with a par value of $1 per share and 4 million shares of
preference stock with a par value of $1 per share authorized, with no shares issued.
NOTE 12 — SHORT-TERM CREDIT ARRANGEMENTS AND BORROWINGS
In August 2010, MichCon entered into an amended and restated $250 million, two-year unsecured revolving credit agreement and a
new $175 million, three-year unsecured revolving credit agreement with a syndicate of 23 banks and may be used for general
corporate borrowings, but are intended to provide liquidity support for the Company’ s commercial paper program. No one bank
provides more than 8.25% of the commitment in any facility. Borrowings under the facilities are available at prevailing short-term
interest rates.
The above agreements require the Company to maintain a total funded debt to capitalization ratio of no more than 0.65 to 1. In the
agreements, “total funded debt” means all indebtedness of the Company and its consolidated subsidiaries, including capital lease
obligations, hedge agreements and guarantees of third parties’ debt, but excluding contingent obligations, nonrecourse and junior
subordinated debt and, except for calculations at the end of the second quarter, certain MichCon short-term debt. “Capitalization”
means the sum of (a) total funded debt plus (b) ”consolidated net worth,” which is equal to consolidated total stockholders’ equity of
the Company and its consolidated subsidiaries (excluding pension effects under certain FASB statements), as determined in
accordance with accounting principles generally accepted in the United States of America. At December 31, 2010, the total funded
debt to total capitalization ratio for MichCon is 0.46 to 1. Should MichCon have delinquent obligations of at least $50 million to any
creditor, such delinquency will be considered a default under its credit agreements.
At December 31, 2010, the Company had outstanding commercial paper of $150 million, resulting in net availability under the
combined facilities of $275 million. At December 31, 2009, the Company had outstanding commercial paper of $327 million.
The weighted average interest rates for short-term borrowings were 0.4% and 0.7% at December 31, 2010 and 2009, respectively.
NOTE 13 — OPERATING LEASES
Lessee — MichCon leases certain property under operating lease arrangements expiring at various dates through 2025. Some leases
contain renewal options. Future minimum lease payments under non-cancelable leases at December 31, 2010 were:
Rental expense for operating leases was $1 million in 2010, 2009 and 2008.
(in Millions)
Operating
Leases
2011
$ 1
2012
1
2013
1
Total minimum lease payments
$ 3