Debt and Credit Agreements

12 Months Ended

Dec. 31, 2012

Debt and Credit Agreements

Note 8 – Debt and Credit Agreements

The carrying value of debt, including the net effect of interest rate swap revaluation adjustments and unamortized deferred debt costs, consisted of the following at December 31:

(Interest rates are the contractual rates at December 31, 2012)	2012		2011
2.13% – 7.58% fixed rate notes due through 2019	$	2,440	$	3,283
1.54% floating rate notes due through 2023		25		25
4.12% – 4.84% non-recourse notes due through 2013		13		49
.91% capital lease obligations due through 2015		33		43
	$	2,511	$	3,400

At December 31, 2012 and 2011, we had interest rate swaps with maturities in 2013, 2014 and 2019 which effectively convert debt of $388 from fixed rate to floating rate.

During 2012, we had a Commercial Paper (CP) program that served as a potential source of short-term liquidity subject to market conditions. No amounts were outstanding under the CP program at any time during 2012. As of December 31, 2012, we had $1,500 available exclusively for us under Boeing’s committed revolving credit line agreements. See Note 2 – Relationship and Transactions with Boeing. On January 24, 2013, in connection with our plan to suspend our SEC reporting obligations, we terminated our commercial paper program and the arrangements with Boeing relating to Boeing’s credit line agreements.

The most restrictive covenants in our debt agreements require us to (a) limit the payment of cash dividends to the extent that our consolidated assets would be less than 115% of our consolidated liabilities (excluding deferred taxes) after dividend payments and (b) restrict the amount of liens on our property to secure indebtedness to 15% or less of consolidated assets, other than liens specifically excluded. At December 31, 2012, as well as at each quarter end during the year, we were in compliance with these covenants.

At December 31, 2012, $46 of our debt (non-recourse notes and capital lease obligations) was collateralized by portfolio assets and underlying equipment totaling $62.

Scheduled principal payments for debt and capital lease obligations are as follows at December 31:

	Debt		Capital Lease Obligations
2013	$	637	$	11
2014		515		11
2015		5		11
2016		505		–
2017		5		–
Thereafter		775		–
	$	2,442	$	33

In 2012, 2011 and 2010, interest payments were $112, $136 and $174, respectively.