Debt Financing Arrangements



	December 31, 2015			December 31, 2014
	(In millions)
1.75% Notes €600 million, due in 2023	$	644		$	—

5.45% Notes $562 million face amount, due in 2018 ⁽¹⁾	561			699

Floating Rate Notes €500 million, due in 2019	541			—

4.479% Debentures $516 million face amount, due in 2021 ⁽²⁾	516			771

5.375% Debentures $470 million face amount, due in 2035 ⁽³⁾	459			585

5.765% Debentures $378 million face amount, due in 2041 ⁽⁴⁾	378			595

5.935% Debentures $383 million face amount, due in 2032 ⁽⁵⁾	377			415

4.016% Debentures $570 million face amount, due in 2043	377			374

4.535% Debentures $528 million face amount due in 2042	374			372

8.375% Debentures $261 million face amount, due in 2017 ⁽⁶⁾	260			294

7.0% Debentures $164 million face amount, due in 2031 ⁽⁷⁾	163			183

6.625% Debentures $160 million face amount, due in 2029 ⁽⁸⁾	159			181

6.95% Debentures $159 million face amount, due in 2097 ⁽⁹⁾	155			168

7.5% Debentures $150 million face amount, due in 2027 ⁽¹⁰⁾	149			185

6.45% Debentures $127 million face amount, due in 2038 ⁽¹¹⁾	125			152

6.75% Debentures $118 million face amount, due in 2027 ⁽¹²⁾	117			121

Other	436			457
Total long-term debt including current maturities	5,791			5,552
Current maturities	(12		)	(24		)
Total long-term debt	$	5,779		$	5,528

⁽¹⁾ $700 million face amount as of December 31, 2014

⁽²⁾ $750 million face amount as of December 31, 2014

⁽³⁾ $600 million face amount as of December 31, 2014

⁽⁴⁾ $596 million face amount as of December 31, 2014

⁽⁵⁾ $420 million face amount as of December 31, 2014

⁽⁶⁾ $295 million face amount as of December 31, 2014

⁽⁷⁾ $185 million face amount as of December 31, 2014

⁽⁸⁾$182 million face amount as of December 31, 2014

⁽⁹⁾ $172 million face amount as of December 31, 2014

⁽¹⁰⁾$187 million face amount as of December 31, 2014

⁽¹¹⁾ $154 million face amount as of December 31, 2014

⁽¹²⁾ $124 million face amount as of December 31, 2014

On June 24, 2015, the Company issued €500 million ($563 million) aggregate principal amount of Floating Rate Notes due in 2019 and €600 million ($675 million) aggregate principal amount of 1.75% Notes due in 2023. Proceeds before expenses were €499 million ($562 million) and €594 million ($669 million) from the Floating Rate Notes and the 1.75% Notes, respectively. At December 31, 2015, the Company designated €1.1 billion of the Notes as a hedge of its net investment in a foreign subsidiary.

On July 1, 2015, the Company accepted for repurchase $794 million aggregate principal amount of certain of its outstanding debentures (the “Debentures”) validly tendered and not withdrawn. Pursuant to the terms of its previously announced cash tender offers, the Company paid aggregate total consideration of $961 million for the Debentures accepted for repurchase. In September 2015, the Company redeemed $141 million of its 5.45% outstanding debentures for $156 million. These cash tender offers and the debt redemption were financed by the Euro-denominated debt issued on June 24, 2015. The Company recognized a debt extinguishment charge of $189 million, including transaction expenses of $7 million, in the quarter ended September 30, 2015 pertaining to these transactions.

The debt issuance and the debt repurchase transactions discussed above resulted in a net increase in long-term debt of $0.3 billion.

Discount amortization expense, net of premium amortization, of $8 million, $11 million, and $54 million for the years ended December 31, 2015, 2014, and 2013, respectively, were included in interest expense related to the Company’s long-term debt.

At December 31, 2015, the fair value of the Company’s long-term debt exceeded the carrying value by $0.9 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, 2015, are $12 million, $273 million, $571 million, $552 million, and $8 million, respectively.

At December 31, 2015, the Company had lines of credit totaling $5.7 billion, of which $5.6 billion was unused. The weighted average interest rates on short-term borrowings outstanding at December 31, 2015 and 2014, were 5.50% and 3.76%, 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, 2015.

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, 2015.

The Company has outstanding standby letters of credit and surety bonds at December 31, 2015 and 2014, totaling $0.8 billion and $1.0 billion, 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, 2015, the Company utilized $1.2 billion of its facility under the Programs (see Note 20 for more information on the Programs).