Debt Financing Arrangements



	December 31, 2014			December 31, 2013
	(In millions)
4.479% Debentures $750 million face amount, due in 2021	773			746

5.45% Notes $700 million face amount, due in 2018	701			699

5.765% Debentures $596 million face amount, due in 2041	600			600

5.375% Debentures $600 million face amount, due in 2035	589			588

5.935% Debentures $420 million face amount, due in 2032	417			416

4.016% Debentures $570 million face amount, due in 2043	378			376

4.535% Debentures $528 million face amount due in 2042	375			373

8.375% Debentures $295 million face amount, due in 2017	294			294

7.5% Debentures $187 million face amount, due in 2027	186			186

7.0% Debentures $185 million face amount, due in 2031	184			184

6.625% Debentures $182 million face amount, due in 2029	182			182

6.95% Debentures $172 million face amount, due in 2097	170			170

6.45% Debentures $154 million face amount, due in 2038	153			153

6.75% Debentures $124 million face amount, due in 2027	122			122

0.875% Convertible Senior Notes $1.15 billion face amount, due in 2014	—			1,144

Other	458			279
Total long-term debt including current maturities	5,582			6,512
Current maturities	(24		)	(1,165		)
Total long-term debt	$	5,558		$	5,347

In February 2007, the Company issued $1.15 billion principal amount of convertible senior notes due in 2014 (the Notes) in a private placement. The Notes were issued at par and bear interest at a rate of 0.875% per year, payable semiannually. In accordance with applicable accounting standards, the Company recognized the Notes proceeds received in 2007 as long-term debt of $853 million and equity of $297 million. The discount on the long-term debt was amortized over the life of the Notes using the effective interest method. Discount amortization expense of $6 million, $49 million, $24 million, $22 million, and $45 million for the years ended December 31, 2014 and 2013, the six months ended December 31, 2012 and 2011, and the year ended June 30, 2012, respectively, were included in interest expense related to the Notes.

On February 18, 2014, the Notes were repaid with available funds.

Discount amortization expense net of premium of $11 million, $54 million, $23 million, $26 million, and $49 million for the years ended December 31, 2014 and 2013, the six months ended December 31, 2012 and 2011, and the year ended June 30, 2012, respectively, were included in interest expense related to the Company's long-term debt.

At December 31, 2014, the fair value of the Company’s long-term debt exceeded the carrying value by $1.3 billion, as estimated using quoted market prices (a Level 2 measurement under applicable accounting standards).

The aggregate maturities of long-term debt for the five years after December 31, 2014, are $24 million, $14 million, $307 million, $711 million, and $10 million, respectively.

At December 31, 2014, the Company had lines of credit totaling $6.6 billion which was unused. The weighted average interest rates on short-term borrowings outstanding at December 31, 2014 and 2013, were 3.76% and 4.24%, respectively. Of the Company’s total lines of credit, $4.0 billion support a commercial paper borrowing facility, against which there was no commercial paper outstanding at December 31, 2014.

The Company’s credit facilities and certain debentures require the Company to comply with specified financial and non-financial covenants including maintenance of minimum tangible net worth as well as limitations related to incurring liens, secured debt, and certain other financing arrangements. The Company is in compliance with these covenants as of December 31, 2014.

The Company has outstanding standby letters of credit and surety bonds at December 31, 2014 and 2013, totaling $980 million and $795 million, respectively.

The Company has accounts receivable securitization programs (the “Programs”). The Programs provide the Company with up to $1.6 billion in funding resulting from the sale of accounts receivable. As of December 31, 2014, the Company utilized $1.6 billion of its facility under the Programs (see Note 20 for more information on the Programs).