Indebtedness:

Short-term Borrowings:

At March 31, 2014 and December 31, 2013, PMI’s short-term borrowings, consisting of commercial paper and bank loans to certain PMI subsidiaries, had a carrying value of $3,284 million and $2,400 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, 2014 and December 31, 2013, PMI’s long-term debt consisted of the following:



(in millions)	March 31, 2014		December 31, 2013
U.S. dollar notes, 0.284% to 6.375% (average interest rate 3.878%), due through 2043	$	15,258	$	16,500
Foreign currency obligations:
Euro notes, 1.750% to 5.875% (average interest rate 3.120%), due through 2033	9,659		7,303
Swiss franc notes, 0.875% to 2.000% (average interest rate 1.240%), due through 2021	1,293		1,289
Other (average interest rate 3.615%), due through 2024	185		186
	26,395		25,278
Less current portion of long-term debt	406		1,255
	$	25,989	$	24,023

Other foreign currency debt above includes mortgage debt in Switzerland and capital lease obligations at March 31, 2014 and December 31, 2013.

PMI's debt offerings in the first quarter of 2014 were as follows:



(in millions)
Type		Face Value	Interest Rate		Issuance	Maturity

EURO notes	^(a)	€750 (approximately $1,029)	1.875	%	March 2014	March 2021
EURO notes	^(a)	€1,000 (approximately $1,372)	2.875	%	March 2014	March 2026

^(a) Interest on these notes is payable annually in arrears beginning in March 2015. U.S. dollar equivalents for foreign currency notes were calculated based on exchange rates on the date of issuance.

The net proceeds from the sale of the securities listed in the table above will be used for general corporate purposes.

Credit Facilities:

On January 31, 2014, PMI extended the term of its $2.0 billion 364-day revolving credit facility until February 10, 2015. On February 28, 2014, PMI replaced its $2.5 billion multi-year revolving credit facility, expiring March 31, 2015, with a new $2.5 billion multi-year credit facility, expiring on February 28, 2019.

At March 31, 2014, PMI's total committed credit facilities were as follows:

(in billions)



Type	Committed Credit Facilities
364-day revolving credit, expiring February 10, 2015	$	2.0
Multi-year revolving credit, expiring February 28, 2019	2.5
Multi-year revolving credit, expiring October 25, 2016	3.5
Total facilities	$	8.0

At March 31, 2014, there were no borrowings under these committed credit facilities, and the entire committed amounts were available for borrowing.