Walmart 2006 Annual Report Download - page 39

37
2 COMMERCIAL PAPER AND LONG-TERM DEBT
Information on short-term borrowings and interest rates is as
follows (dollars in millions):
Fiscal Year 2006 2005 2004
Maximum amount outstanding
at any month-end $9,054 $7,782 $4,957
Average daily short-term borrowings 5,719 4,823 1,498
Weighted-average interest rate 3.4% 1.6% 1.1%
At January 31, 2006 and 2005, short-term borrowings consisted
of $3.8 billion of commercial paper. At January 31, 2006, the
Company had committed lines of credit of $5.0 billion with 57
fi rms and banks, which were used to support commercial paper,
and committed and informal lines of credit with various banks
totaling an additional $693 million.
Long-term debt at January 31, consists of (in millions):
Interest Rate Due by Fiscal Year 2006 2005
2.130 – 6.875% Notes due 2010 $ 4,527 $ 4,500
5.250% Notes due 2036 4,279 1,883
1.100 – 13.250%,
LIBOR less 0.140% Notes due 2007 3,415 3,164
2.875 – 8.380%,
LIBOR less 0.1025% Notes due 2008 3,311 1,500
0.1838 – 0.880% Notes due 2011(1) 3,308 500
0.750 – 7.250% Notes due 2014 2,885 2,883
3.000 – 3.375% Notes due 2009 2,800 1,000
1.200 – 4.125% Notes due 2012 2,015 2,000
5.750 – 7.550% Notes due 2031 1,890 1,941
3.150 – 6.630% Notes due 2016 767 –
2.950 – 5.006% Notes due 2019(1) 516 500
5.300 – 6.750% Notes due 2024 266 250
2.100 – 2.875% Notes due 2015 53 –
2.000 – 2.500% Notes due 2017 41 –
3.750 – 5.000% Notes due 2018 31 –
5.170% Notes due 2021 25 –
1.000 – 2.300% Notes due 2013 23 –
4.150 – 5.875%,
LIBOR less 0.0425% Notes due 2006 – 2,597
Other (2) 872 1,128
Total $31,024 $23,846
(1) Includes put option on $500 million.
(2) Includes adjustments to debt hedged by derivatives.
The Company has two separate issuances of $500 million debt
with embedded put options. For the fi rst issuance, beginning June
2001, and each year thereafter, the holders of $500 million of the
debt may require the Company to repurchase the debt at face
value, in addition to accrued and unpaid interest. The holders of
the other $500 million issuance may require the Company to
repurchase the debt at par plus accrued interest at any time. Both
of these issuances have been classifi ed as a current liability in the
Consolidated Balance Sheets.
Under the Company’s most signifi cant borrowing arrangements,
the Company is not required to observe fi nancial covenants.
However, under certain lines of credit totaling $5.0 billion, which
were undrawn as of January 31, 2006, the Company has agreed
to observe certain covenants, the most restrictive of which relates
to minimum net worth levels and amounts of additional secured
debt and long-term leases. In addition, one of our subsidiaries
has restrictive fi nancial covenants on $2.0 billion of long-term
debt that requires it to maintain certain equity, sales, and profi t
levels. The Company was in compliance with these covenants at
January 31, 2006.
Long-term debt is unsecured except for $1.1 billion, which is
collateralized by property with an aggregate carrying value of
approximately $1.4 billion. Annual maturities of long-term debt
during the next fi ve years and thereafter are (in millions):
Fiscal Year Ended January 31, Annual Maturity
2007 $ 4,595
2008 3,320
2009 2,858
2010 4,639
2011 2,877
Thereafter 12,735
Total $31,024
The Company has entered into sale/leaseback transactions involv-
ing buildings while retaining title to the underlying land. These
transactions were accounted for as fi nancings and are included in
long-term debt and the annual maturities schedule above. The
resulting obligations are amortized over the lease terms. Future
minimum lease payments during the next fi ve years and thereafter
are (in millions):
Fiscal Year Ended January 31, Minimum Payments
2007 $ 9
2008 10
2009 10
2010 10
2011 10
Thereafter 211
Total $260