NOTES PAYABLE, LONG-TERM DEBT AND AVAILABLE CREDIT FACILITIES

6 Months Ended

Jun. 30, 2014

Debt Disclosure [Abstract]

NOTES PAYABLE, LONG-TERM DEBT AND AVAILABLE CREDIT FACILITIES

NOTES PAYABLE, LONG-TERM DEBT AND AVAILABLE CREDIT FACILITIES

Notes Payable In millions	Jun 30, 2014			Dec 31, 2013
Notes payable to banks and other lenders	$	458		$	300
Notes payable to related companies	119			137
Notes payable trade	10			6
Total notes payable	$	587		$	443
Period-end average interest rates	3.81		%	3.23		%

Long-Term Debt In millions	2014 Average Rate		Jun 30, 2014			2013 Average Rate		Dec 31, 2013
Promissory notes and debentures:
Final maturity 2014	2.79	%	$	31		5.33	%	$	399
Final maturity 2015	2.82	%	60			2.89	%	56
Final maturity 2016	2.53	%	805			2.53	%	805
Final maturity 2017	5.67	%	489			5.65	%	491
Final maturity 2018	5.45	%	567			5.43	%	570
Final maturity 2019	8.41	%	2,168			8.40	%	2,171
Final maturity 2020 and thereafter	5.40	%	10,062			5.41	%	10,029
Other facilities:
U.S. dollar loans, various rates and maturities	1.39	%	475			1.44	%	490
Foreign currency loans, various rates and maturities	3.03	%	1,134			3.18	%	1,140
Medium-term notes, varying maturities through 2024	3.63	%	1,357			3.76	%	1,143
Tax-exempt bonds, varying maturities through 2038	5.66	%	343			5.59	%	518
Capital lease obligations	—		80			—		41
Unamortized debt discount	—		(327		)	—		(336		)
Long-term debt due within one year	—		(208		)	—		(697		)
Long-term debt	—		$	17,036		—		$	16,820

Annual Installments on Long-Term Debt For Next Five Years at June 30, 2014 In millions
2014	$	103
2015	$	418
2016	$	1,374
2017	$	780
2018	$	935
2019	$	2,501

2014 Activity

During the first six months of 2014, the Company issued $217 million aggregate principal amount of InterNotes. The Company also repaid $346 million of long-term debt related to the purchase of an ethylene facility (see Note 11 for additional information), redeemed $124 million of tax-exempt bonds at maturity and repurchased $51 million of tax-exempt bonds. In addition, approximately $38 million of long-term debt (net of $41 million of additional borrowings) was repaid by consolidated variable interest entities.

2013 Activity

On June 24, 2013, the Company redeemed $1.25 billion aggregate principal amount of 5.9 percent notes due February 15, 2015, at a price of 108.4 percent of the principal amount of the notes, plus accrued and unpaid interest. As a result of this redemption, the Company realized a $108 million pretax loss on the early extinguishment of debt, included in "Sundry income (expense) - net" in the consolidated statements of income and reflected in Corporate.

On June 15, 2013, the Company redeemed $142 million aggregate principal amount of InterNotes of various interest rates and varying maturities in 2017, 2018, 2020, 2021 and 2022. As a result of this redemption, the Company realized a $2 million pretax loss on the early extinguishment of debt, included in "Sundry income (expense) - net" in the consolidated statements of income and reflected in Corporate.

On March 25, 2013, the Company redeemed $750 million aggregate principal amount of 7.6 percent notes due May 15, 2014, at a price of 107.8 percent of the principal amount of the notes, plus accrued and unpaid interest. As a result of this redemption, the Company realized a $60 million pretax loss on the early extinguishment of debt, included in "Sundry income (expense) - net" in the consolidated statements of income and reflected in Corporate.

During the first six months of 2013, the Company redeemed $250 million of 5.6 percent notes that matured on March 15, 2013 and redeemed $80 million principal amount of InterNotes at maturity. In the second quarter of 2013, the Company repurchased $200 million of tax-exempt bonds.

During the first six months of 2013, the Company issued $142 million aggregate principal amount of InterNotes and approximately $48 million of long-term debt (net of $61 million of repayments) was entered into by consolidated variable interest entities. The Company also drew $300 million on a Committed Term Loan Facility on April 5, 2013.

Available Credit Facilities

The following table summarizes the Company's credit facilities:

Committed and Available Credit Facilities at June 30, 2014
In millions	Effective Date	Committed Credit		Credit Available		Maturity Date	Interest
Five Year Competitive Advance and Revolving Credit Facility	October 2011	$	5,000	$	5,000	October 2016	Floating rate
Bilateral Revolving Credit Facility	October 2012	170		170		October 2016	Floating rate
Bilateral Revolving Credit Facility	March 2013	100		100		March 2015	Floating rate
Bilateral Revolving Credit Facility	March 2013	300		300		October 2016	Floating rate
Term Loan Facility	March 2013	300		—		March 2016	Floating rate
Bilateral Revolving Credit Facility	April 2013	200		200		April 2016	Floating rate
Bilateral Revolving Credit Facility	October 2013	200		200		October 2016	Floating rate
Bilateral Revolving Credit Facility	October 2013	100		100		October 2016	Floating rate
Bilateral Revolving Credit Facility	January 2014	100		100		October 2016	Floating rate
Total Committed and Available Credit Facilities		$	6,470	$	6,170

Debt Covenants and Default Provisions

There were no material changes to the debt covenants and default provisions related to the Company's outstanding long-term debt and primary, private credit agreements in the first six months of 2014. For additional information on the Company's debt covenants and default provisions, see Note 16 to the Consolidated Financial Statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2013.