Indebtedness:

Short-Term Borrowings

At December 31, 2016 and 2015, PMI’s short-term borrowings and related average interest rates consisted of the following:



	December 31, 2016				December 31, 2015
(in millions)	Amount Outstanding		Average Year-End Rate		Amount Outstanding		Average Year-End Rate
Commercial paper	$	—	—	%	$	—	—	%
Bank loans	643		5.0		825		6.1
	$	643			$	825

Given the mix of subsidiaries and their respective local economic environments, the average interest rate for bank loans above can vary significantly from day to day and country to country.

The fair values of PMI’s short-term borrowings at December 31, 2016 and 2015, based upon current market interest rates, approximate the amounts disclosed above.

Long-Term Debt

At December 31, 2016 and 2015, PMI’s long-term debt consisted of the following:



	December 31,
(in millions)	2016		2015
U.S. dollar notes, 1.125% to 6.375% (average interest rate 3.662%), due through 2044	$	19,857	$	18,091
Foreign currency obligations:
Euro notes, 1.750% to 3.125% (average interest rate 2.400%), due through 2036	6,828		7,423
Swiss franc notes, 0.750% to 2.000% (average interest rate 1.269%), due through 2024	1,312		1,690
Other (average interest rate 3.162%), due through 2024	427		451
	28,424		27,655
Less current portion of long-term debt	2,573		2,405
	$	25,851	$	25,250

Other debt:

Other foreign currency debt above includes mortgage debt in Switzerland, capital lease obligations and a bank loan in the Philippines.

Debt Issuances Outstanding:

PMI’s debt issuances outstanding at December 31, 2016, were as follows:



(in millions)
Type		Face Value	Interest Rate	Issuance	Maturity
U.S. dollar notes		$550	1.625%	March 2012	March 2017
U.S. dollar notes		$750	1.125%	August 2012	August 2017
U.S. dollar notes		$500	1.250%	August 2015	August 2017
U.S. dollar notes		$500	1.250%	November 2014	November 2017
U.S. dollar notes		$2,500	5.650%	May 2008	May 2018
U.S. dollar notes		$750	1.875%	November 2013	January 2019
U.S. dollar notes		$500	1.375%	February 2016	February 2019
U.S. dollar notes		$1,000	4.500%	March 2010	March 2020
U.S. dollar notes		$750	1.875%	February 2016	February 2021
U.S. dollar notes		$350	4.125%	May 2011	May 2021
U.S. dollar notes		$750	2.900%	November 2011	November 2021
U.S. dollar notes		$750	2.500%	August 2012	August 2022
U.S. dollar notes		$600	2.625%	March 2013	March 2023
U.S. dollar notes		$500	2.125%	May 2016	May 2023
U.S. dollar notes		$500	3.600%	November 2013	November 2023
U.S. dollar notes		$750	3.250%	November 2014	November 2024
U.S. dollar notes		$750	3.375%	August 2015	August 2025
U.S. dollar notes		$750	2.750%	February 2016	February 2026
U.S. dollar notes		$1,500	6.375%	May 2008	May 2038
U.S. dollar notes		$750	4.375%	November 2011	November 2041
U.S. dollar notes		$700	4.500%	March 2012	March 2042
U.S. dollar notes		$750	3.875%	August 2012	August 2042
U.S. dollar notes		$850	4.125%	March 2013	March 2043
U.S. dollar notes		$750	4.875%	November 2013	November 2043
U.S. dollar notes		$750	4.250%	November 2014	November 2044
U.S. dollar notes		$500	4.250%	May 2016^(a)	November 2044
EURO notes	^(b)	€750 (approximately $951)	2.125%	May 2012	May 2019
EURO notes	^(b)	€1,250 (approximately $1,621)	1.750%	March 2013	March 2020
EURO notes	^(b)	€750 (approximately $1,029)	1.875%	March 2014	March 2021
EURO notes	^(b)	€600 (approximately $761)	2.875%	May 2012	May 2024
EURO notes	^(b)	€750 (approximately $972)	2.750%	March 2013	March 2025
EURO notes	^(b)	€1,000 (approximately $1,372)	2.875%	March 2014	March 2026
EURO notes	^(b)	€500 (approximately $697)	2.875%	May 2014	May 2029
EURO notes	^(b)	€500 (approximately $648)	3.125%	June 2013	June 2033
EURO notes	^(b)	€500 (approximately $578)	2.000%	May 2016	May 2036
Swiss franc notes	^(b)	CHF200 (approximately $217)	0.875%	March 2013	March 2019
Swiss franc notes	^(b)	CHF275 (approximately $311)	0.750%	May 2014	December 2019
Swiss franc notes	^(b)	CHF325 (approximately $334)	1.000%	September 2012	September 2020
Swiss franc notes	^(b)	CHF300 (approximately $335)	2.000%	December 2011	December 2021
Swiss franc notes	^(b)	CHF250 (approximately $283)	1.625%	May 2014	May 2024

^(a) These notes are a further issuance of the 4.250% notes issued by PMI in November 2014.

^(b)USD 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 were used for general corporate purposes, including working capital requirements and repurchase of PMI's common stock.

Aggregate maturities:

Aggregate maturities of long-term debt are as follows:



(in millions)
2017	$	2,573
2018	2,506
2019	2,500
2020	2,623
2021	2,926
2022-2026	7,430
2027-2031	522
Thereafter	7,594
	28,674
Debt discounts	(250		)
Total long-term debt	$	28,424

See Note 16. Fair Value Measurements for additional disclosures related to the fair value of PMI’s debt.

Credit Facilities

On January 27, 2016, PMI entered into an agreement to amend and extend its existing $2.0 billion 364-day revolving credit facility from February 9, 2016, to February 7, 2017. On January 27, 2016, PMI also entered into an agreement to extend the term of its existing $2.5 billion multi-year revolving credit facility from February 28, 2020, to February 28, 2021.

At December 31, 2016, PMI’s total committed credit facilities and commercial paper outstanding were as follows:



Type (in billions of dollars)	Committed Credit Facilities		Commercial Paper
364-day revolving credit, expiring February 7, 2017	$	2.0
Multi-year revolving credit, expiring February 28, 2021	2.5
Multi-year revolving credit, expiring October 1, 2020 ⁽¹⁾	3.5
Total facilities	$	8.0
Commercial paper outstanding			$	—

⁽¹⁾ On August 30, 2016, PMI entered into an agreement, effective October 1, 2016, to extend the term of its multi-year revolving credit facility, for an additional year covering the period October 1, 2020, to October 1, 2021, in the amount of $3.35 billion.

At December 31, 2016, there were no borrowings under these committed credit facilities, and the entire committed amounts were available for borrowing.

On January 27, 2017, PMI entered into an agreement to extend the term of its $2.0 billion 364-day revolving credit facility from February 7, 2017, to February 6, 2018.

Each of these facilities requires PMI to maintain a ratio of consolidated earnings before interest, taxes, depreciation and amortization (“consolidated EBITDA”) to consolidated interest expense of not less than 3.5 to 1.0 on a rolling four-quarter basis. At December 31, 2016, PMI’s ratio calculated in accordance with the agreements was 10.6 to 1.0. These facilities do not include any credit rating triggers, material adverse change clauses or any provisions that could require PMI to post collateral. The terms “consolidated EBITDA” and “consolidated interest expense,” both of which include certain adjustments, are defined in the facility agreements previously filed with the Securities and Exchange Commission.

In addition to the committed credit facilities discussed above, certain subsidiaries maintain short-term credit arrangements to meet their respective working capital needs. These credit arrangements, which amounted to approximately $2.9 billion at December 31, 2016 and December 31, 2015, respectively, are for the sole use of the subsidiaries. Borrowings under these arrangements amounted to $643 million at December 31, 2016, and $825 million at December 31, 2015.