8. Debt and Interest Expense

Debt The Company’s outstanding debt is senior unsecured, except for borrowings, if any, under the $5.0 billion Facility. The following summarizes the Company’s outstanding debt:



	September 30,			December 31,
millions	2013			2012
Total debt at face value	$	15,302		$	14,952
Net unamortized discounts and premiums ⁽¹⁾	(1,655		)	(1,683		)
Total long-term debt	$	13,647		$	13,269

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⁽¹⁾	Unamortized discounts and premiums are amortized over the term of the related debt.

Anadarko’s $500 million aggregate principal amount of 7.625% Senior Notes due March 2014 and $275 million aggregate principal amount of 5.750% Senior Notes due June 2014 are classified as long-term debt on the Company’s Consolidated Balance Sheets, as the Company has the ability and intent to refinance these obligations using long-term debt. The Zero-Coupon Senior Notes due 2036 (Zero Coupons) can be put to the Company in October of each year, which would cause the Company to repay up to the then-accreted value of the outstanding Zero Coupons. None of the Zero Coupons (accreted value of $718 million) were put to the Company in October 2013.

Fair Value The Company uses a market approach to determine fair value of its fixed-rate debt using observable market data, which results in a Level 2 fair-value measurement. The carrying amount of floating-rate debt approximates fair value as the interest rates are variable and reflective of market rates. The estimated fair value of the Company’s total borrowings was $15.8 billion at September 30, 2013, and $16.2 billion at December 31, 2012.

Debt Activity The following summarizes the Company’s debt activity during the nine months ended September 30, 2013:



	Carrying
millions	Value			Description
Balance at December 31, 2012	$	13,269
Borrowings	385			WES revolving credit facility
Other, net	9			Amortization of debt discounts and premiums
Balance at March 31, 2013	$	13,663
Borrowings	110			WES revolving credit facility
Repayments	(245		)	WES revolving credit facility
Other, net	10			Amortization of debt discounts and premiums
Balance at June 30, 2013	$	13,538
Issuance	250			WES 2.600% Senior Notes due 2018
Borrowings	100			WES revolving credit facility
Repayments	(250		)	WES revolving credit facility
Other, net	9			Amortization of debt discounts and premiums
Balance at September 30, 2013	$	13,647

WES Borrowings During the third quarter of 2013, WES repaid $250 million of outstanding borrowings under its five-year, $800 million senior unsecured revolving credit facility maturing in March 2016 (RCF) with net proceeds from its public offering of $250 million aggregate principal amount of 2.600% Senior Notes due 2018. At September 30, 2013, WES was in compliance with all covenants contained in its RCF, had outstanding borrowings under its RCF of $100 million at an interest rate of 1.68%, and had available borrowing capacity of $687 million ($800 million maximum capacity, less $100 million of outstanding borrowings and $13 million of outstanding letters of credit).

8. Debt and Interest Expense (Continued)

Interest Expense The following summarizes interest expense:



	Three Months Ended September 30,						Nine Months Ended September 30,
millions	2013			2012			2013			2012
Current debt, long-term debt, and other	$	240		$	238		$	710		$	724
Capitalized interest	(63		)	(53		)	(197		)	(163		)
Interest expense	$	177		$	185		$	513		$	561