Debt

The following table summarizes the carrying value of our outstanding debt:



	Coupon		Carrying Value as of		Effective		Carrying Value as of		Effective
	Rate		June 30, 2013		Interest Rate		December 31, 2012		Interest Rate
	(In millions, except percentages)
Long-Term Debt
Senior notes due 2015	1.625	%	$	599	1.805	%	$	599	1.805	%
Senior notes due 2015	0.700	%	250		0.820	%	250		0.820	%
Senior notes due 2017	1.350	%	999		1.456	%	999		1.456	%
Senior notes due 2020	3.250	%	498		3.389	%	498		3.389	%
Senior notes due 2022	2.600	%	999		2.678	%	999		2.678	%
Senior notes due 2042	4.000	%	743		4.114	%	742		4.114	%
Total senior notes			4,088				4,087
Other indebtedness			35				19
Total long-term debt			$	4,123			$	4,106

Short-Term Debt
Senior notes due 2013	0.875	%	$	400	1.078	%	$	400	1.078	%
Other indebtedness			10				13
Total short-term debt			410				413
Total Debt			$	4,533			$	4,519

Senior Notes

The effective interest rates for our fixed-rate senior notes include the interest payable, the amortization of debt issuance costs and the amortization of any original issue discount on these senior notes. Interest on these senior notes is payable semiannually. Interest expense associated with these senior notes, including amortization of debt issuance costs, during the three months ended June 30, 2013 and 2012 was approximately $27 million and $8 million, respectively. Interest expense associated with these senior notes, including amortization of debt issuance costs, during the six months ended June 30, 2013 and 2012 was approximately $53 million and $16 million, respectively. At June 30, 2013, the estimated fair value of all these senior notes included in long-term debt was approximately $3.9 billion based on market prices on less active markets (Level 2).

The indenture pursuant to which the senior notes were issued includes customary covenants that, among other things and subject to exceptions, limit our ability to incur, assume or guarantee debt secured by liens on specified assets or enter into sale and lease-back transactions with respect to specified properties, and also includes customary events of default.

Other Indebtedness

Our other indebtedness is comprised of overdraft facilities, notes payable, and capital lease obligations. We have formal overdraft facilities in Brazil and India. Drawn balances bear interest at rates ranging from 9% to 11% per annum and are expected to be repaid in greater than one year. Notes payable is comprised primarily of a note that bears interest at 6.3% per annum and has a maturity date of July 2034. Our capital leases have maturity dates ranging from September 2013 to September 2014 and bear interest at rates ranging from 3% to 9% per annum. The present value of future minimum capital lease payments as of June 30, 2013 was as follows (in millions):



	June 30, 2013
	(In millions)
Gross capital lease obligations	$	10
Imputed interest	(1		)
Total present value of future minimum capital lease payments	$	9

Commercial Paper

We have a $2 billion commercial paper program pursuant to which we may issue commercial paper notes with maturities of up to 397 days from the date of issue. As of June 30, 2013, there were no commercial paper notes outstanding.

Credit Agreement

As of June 30, 2013, no borrowings or letters of credit were outstanding under our $3 billion credit agreement. As described above, we have a $2 billion commercial paper program and maintain $2 billion of available borrowing capacity under our credit agreement in order to repay commercial paper borrowings in the event we are unable to repay those borrowings from other sources when they become due. As a result, at June 30, 2013, $1 billion of borrowing capacity was available for other purposes permitted by the credit agreement. The credit agreement includes customary representations, warranties, affirmative and negative covenants, including a financial covenant, events of default and indemnification provisions in favor of the banks. The negative covenants include restrictions regarding the incurrence of liens, subject to exceptions. The financial covenant requires us to meet a quarterly financial test with respect to a minimum consolidated interest coverage ratio.

As of June 30, 2013, we were in compliance with all covenants in our outstanding debt instruments.