Debt and Bank Credit Agreements and Leases (Tables)

12 Months Ended

Dec. 31, 2012

Debt and Bank Credit Agreements and Leases



(Millions)	2012		2011
6 ⁷/₈% notes, due 2012⁽¹⁾	$	—	$	71
5.75% notes, due 2013⁽¹⁾	600		600
3 ⁷/₈% notes, due 2015 (€300)	395		388
1.9 % notes, due 2016⁽¹⁾	249		248
7 ³/₈% notes, due 2016⁽¹⁾	146		146
6 ⁷/₈% notes, due 2017	74		74
6.65% notes, due 2018	700		700
7.4% notes, due 2019	198		198
3.6% notes, due 2020	495		495
9% non-callable debentures, due 2021	149		149
2.70% notes, due 2022 ⁽²⁾	400		—
7.70% notes, due 2038	249		249
5.5% notes, due 2040	248		248
Impact of derivatives on debt⁽¹⁾	31		42
Various other non-U.S. debt, weighted average 3.4% as of December 31, 2012 and 2.3% of December 31, 2011.	5		9
Capital lease obligations	32		32
Total	3,971		3,649
Less payments due within one year	603		75
Long-term debt	$	3,368	$	3,574

(1)

PPG entered into several interest rate swaps which as of December 31, 2011 had the effect of converting $445 million, of these fixed rate notes to variable rates, based on the three-month London Interbank Offered Rate (LIBOR). There were no interest rate swaps outstanding at December 31, 2012. The fair values of these interest rate swaps were based on Level 2 inputs as described in Note 9. The weighted average effective interest rate for these borrowings, including the effects of the swaps, was 2.7% and 3.1% for the years ended December 31, 2012 and 2011, respectively. Refer to Note 11 for additional information.


(2)	In 2012, the $400 million notes were issued at a discount. Concurrently, PPG settled forward starting swaps with a payment of $121 million. This loss will be amortized to interest expense over the life of the debt. The effective interest rate on the $400 million notes was 5.8% at December 31, 2012.

Short-Term Debt Outstanding

Short-term debt outstanding as of December 31, 2012 and 2011, was as follows:



(Millions)	2012		2011
Other, weighted average 2.27% as of Dec. 31, 2012 and 3.72% as of December 31, 2011	$	39	$	33
Total	$	39	$	33