Financial Statement Disclosure. Use the following excerpt from the financial statements of Fixet Company’s debt footnote (from Fixet Company’s 2018 annual report) to answer these questions:
- a. At December 31, 2018, what is the amount of the current portion of long-term debt?
- b. How much debt will mature over the next 5 years?
- c. What would be the difference in liabilities if Fixet reported the debt at fair values?
Fixet Company
Note 9—Long-Term Debt [Excerpt]
Long-term debt net of unamortized premiums and discounts and swap fair value adjustments is comprised of the following:
In millions of U.S. dollars | December 31, 2018 |
5.66% Corporate bond, payable July 23, 2020 | $ 27.0 |
5.4% Corporate bond, payable August 7, 2020 | 16.1 |
4.7% Corporate bond, payable October 1, 2021 | 50.0 |
5.15% Corporate bond, payable December 15, 2023 | 110.4 |
4.3% Japanese yen note, payable June 26, 2025 | 1177 |
1.52125% Japanese yen note, payable February 14, 2020 | 55.1 |
Total | 376.3 |
Less current maturities | 7.4 |
Non Current Portion | $368.9 |
The scheduled maturity of long-term debt m each of the years ending December 31, 2019, through 2023, is $7.4 million $172.1 million, $57.4 million $47.4 million, and $7.3 million at face value, respectively.
The Company’s long-term debt is recorded at adjusted cost, net of amortized premiums and discounts The fair value of long-term debt is estimated based upon quoted prices for similar instruments The fair value of the Company’s long-term debt including the current portion, was approximately $403 million at December 31, 2018.
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Intermediate Accounting, Student Value Edition (2nd Edition)
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