Debt Composition: Average Debt Maturity Declining Since 2000, Combined
With Declining Interest Rate, Leading to “Artificially Low” Interest Payments
USA Inc. Debt Maturity vs. Short-Term Interest Rate, 1980 — 2010
ee 20% a iy! Average Treasury Securities Maturity ro fo] 2 1 ih! =— = Short-Term Interest Rate > A * = 2 | 5° gleeeahtadieeesienttehteieatentieaeetemieaieenieiaaiaaees, dake ¥7 sate aeons 15% & E i! f 30-Year Average » 5 s ) | Maturity S a [ag wv ” = 2 F 5 10% = e 4 a E g 5 i m yy w@_ NJ _______.__ 2 ip me gm RQ = 2 4 ‘7 ia | rN SB & Vv / 5 \ \ a =a 7 1 3 T T T T T T T T T T = = 0% 1980 1983 1986 1989 1992 1995 1998 2001 2004 2007 Source: Dept. of Treasury. (@)E) www.kpcb.com USA Inc. | Income Statement Drilldown 169
Debt Composition: Maturity — Temporary High Mix (32%) of
Short-Term Treasury Bills in 2009 Took Advantage of Historic Low Interest Rates to Reduce Interest Payments
USA Inc. Outstanding Debt Breakdown by Type & Maturity, 2000 - 2010
i+) a a 100% T% aTIPS
a Bonds
Treasury Inflation 6% Protected Securities 5% - Long-Term (10+ Year Maturity) 4% a Notes - Medium-Term (2- 10 Year Maturity) 3% =a Bills 2% - Short-Term (0-1 sy | = ‘i Year Maturity) 1% Short-Term Interest Rate (Fed Funds Rate) 0% emails :
% — =
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 10-Year Average Share of T-Bills
Interest Rate (%)
% of Total Marketable Debt Outstanding
P Note: Data as of March each year, composition excludes nonmarketable securities. Source: Dept. of Treasury. (@E) www.kpcb.com USA Inc. | Income Statement Drilldown 170
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