Indebtedness:

Short-term Borrowings:

At March 31, 2012 and December 31, 2011, PMI’s short-term borrowings, consisting of commercial paper and bank loans to certain PMI subsidiaries, had a carrying value of $4,085 million and $1,511 million, respectively. The fair value of PMI’s short-term borrowings, based on current market interest rates, approximates carrying value.

Long-term Debt:

At March 31, 2012 and December 31, 2011, PMI’s long-term debt consisted of the following:



(in millions)	March 31, 2012		December 31, 2011
U.S. dollar notes, 1.625% to 6.875% (average interest rate 4.810%), due through 2042	$	12,488	$	11,269
Foreign currency obligations:
Euro notes, 5.750% to 5.875% (average interest rate 5.813%), due through 2016	1,978		3,533
Swiss franc notes, 1.0% to 4.0% (average interest rate 2.799%), due through 2021	1,790		1,719
Other (average interest rate 2.930%), due through 2024	500		513
	16,756		17,034
Less current portion of long-term debt	1,410		2,206
	$	15,346	$	14,828

Other foreign currency debt above includes capital lease obligations primarily associated with PMI's vending machine distribution network in Japan. Other foreign currency debt also includes long-term debt from our business combination in the Philippines and mortgage debt in Switzerland.

In March 2012, PMI issued $700 million of 4.500% U.S. dollar notes due March 2042 and $550 million of 1.625% U.S. dollar notes due March 2017. Interest on these notes is payable semiannually beginning in September 2012. The net proceeds from the sale of these securities ($1,220 million) were used to meet PMI’s working capital requirements, to repurchase PMI’s common stock, to refinance debt and for general corporate purposes.

Credit Facilities:

At March 31, 2012, PMI’s total committed credit facilities were $6.0 billion, and there were no borrowings outstanding under these committed credit facilities.