At December 31, 2004, Bunge had approximately $1,297 million of unused and available borrowing capacity under its committed long-term credit facilities with a number of lending institutions. Certain land, property, equipment and investments in consoli- dated subsidiaries having a net carrying value of approximately  $633 million at December 31, 2004 have been mortgaged or otherwise collateralized against long-term debt of $178 million  at December 31, 2004. Principal maturities of long-term debt at December 31, 2004 are as follows: rates approximate the 30-day commercial paper rate plus  annual commitment fees ranging from 29.5 to 40 basis points. During 2004 and 2003, the outstanding undivided interests averaged $115 million and $125 million, respectively. Bunge retains collection and administrative responsibilities for the receivables in the pools. Bunge recognized $2 million and  $3 million in related expenses for the years ended December 31, 2004 and 2003, respectively, which are included in selling, general and administrative expenses in Bunge’s consolidated statements of income. In addition, Bunge retains interests in the pools of accounts receivable not sold. Due to the short-term nature of the receiv- ables, Bunge’s retained interests in the pools are valued at  historical cost, which approximate fair value. The full amount of the allowance for doubtful accounts receivable has been retained in Bunge’s consolidated balance sheets since collections of  all pooled accounts receivable are first utilized to reduce the outstanding undivided interests. At December 31, 2004, there were no undivided interests in the pooled accounts receivable outstanding. Accounts receivable at December 31, 2003 were net of $125 million representing the outstanding undivided  interests in pooled accounts receivable. Bunge’s indentures, credit facilities other long-term debt agree- ments and commercial paper program contain various restrictive covenants which require the satisfaction of certain financial covenants related to minimum net worth and working capital and a maximum long-term debt to net worth ratio. Bunge was in compliance with these covenants at December 31, 2004. employee defined benefit plans Certain U.S., Canadian and European based subsidiaries of Bunge sponsor noncontributory defined benefit pension plans covering substantially all employees of the subsidiaries. The plans provide benefits based primarily  on participants’ salary and length of service. The funding policies for the defined benefit pension plans are determined in accordance with statutory funding requirements. The U.S. funding policy requires at least those amounts required by the Employee Retirement Income Security Act of 1974 and  no more than those amounts permitted by the Internal Revenue Code. Assets of the plans consist primarily of fixed income and equity investments. postretirement healthcare benefit plans Certain U.S. based subsidiaries of Bunge have benefit plans to provide certain postretirement healthcare benefits to eligible retired employees of those subsidiaries. The plans require minimum retiree contri- butions and define the maximum amount the subsidiaries will be obligated to pay under the plans. During 2002, Bunge established, through its wholly-owned U.S. operating subsidiary, an accounts receivable securitization facility. In addition, through the acquisition of Cereol, Bunge assumed an additional receivables securitization facility. Through agreements with certain financial institutions, Bunge may sell, on a revolving basis, undivided percentage ownership interests (undivided inter- ests) in designated pools of accounts receivable without recourse up to a maximum amount of approximately $150 million. Collec- tions reduce accounts receivable included in the pools, and are used to purchase new receivables, which become part of the pools. One of the facilities expires in 2005, with an option to renew and the other facility expires in 2007. The effective yield In 2004, 2003 and 2002, Bunge paid interest, net of interest capitalized, of $162 million, $152 million and $134 million, respectively. 19. employee benefit plans  18. accounts receivable securitization 72 (US$ in millions) 2005 $ $ 1 14 40 0 2006 1 17 73 3 2007 1 15 52 2 2008 5 52 25 5 2009 7 70 0 Later years 1 1,,6 68 80 0 Total $ $2 2,,7 74 40 0 bunge 2004 annual report notes to the consolidated  financial statements