Annual report pursuant to Section 13 and 15(d)

DEBT AND FINANCING ARRANGEMENTS (Tables)

v3.3.1.900
DEBT AND FINANCING ARRANGEMENTS (Tables)
 12 Months Ended
Dec. 31, 2015
Debt Disclosure [Abstract]  
Carrying Value of Debt Obligations
The following table sets forth the principal amount, maturity or range of maturities, as well as the carrying value of our debt obligations, as of December 31, 2015 and 2014 (in millions). The carrying value of these debt obligations can differ from the principal amount due to the impact of unamortized discounts or premiums and valuation adjustments resulting from interest rate swap hedging relationships.
 
 
Principal
 
 
 
Carrying Value
 
Amount
 
Maturity
 
2015
 
2014
Commercial paper
$
2,965

 
2016
 
$
2,965

 
$
772

Fixed-rate senior notes:
 
 
 
 
 
 
 
1.125% senior notes
375

 
2017
 
372

 
369

5.50% senior notes
750

 
2018
 
787

 
802

5.125% senior notes
1,000

 
2019
 
1,064

 
1,076

3.125% senior notes
1,500

 
2021
 
1,613

 
1,616

2.45% senior notes
1,000

 
2022
 
991

 
976

6.20% senior notes
1,500

 
2038
 
1,481

 
1,481

4.875% senior notes
500

 
2040
 
489

 
489

3.625% senior notes
375

 
2042
 
367

 
367

8.375% Debentures:
 
 
 
 
 
 
 
8.375% debentures
424

 
2020
 
474

 
480

8.375% debentures
276

 
2030
 
282

 
282

Pound Sterling Notes:
 
 
 
 
 
 
 
     5.50% notes
98

 
2031
 
92

 
97

     5.125% notes
670

 
2050
 
638

 
673

Euro Senior Notes:
 
 
 
 
 
 
 
1.625% notes
765

 
2025
 
759

 
—

Floating rate senior notes
547

 
2020
 
544

 
—

Floating rate senior notes
606

 
2049 – 2065
 
600

 
458

Capital lease obligations
475

 
2016 – 3005
 
475

 
505

Facility notes and bonds
320

 
2016 – 2045
 
319

 
320

Other debt
21

 
2016 – 2022
 
22

 
16

Total debt
$
14,167

 
 
 
14,334

 
10,779

Less: current maturities
 
 
 
 
(3,018
)
 
(923
)
Long-term debt
 
 
 
 
$
11,316

 
$
9,856

Debt Instruments, Average Effective Interest Rate
The average interest rate payable on these notes, including the impact of the interest rate swaps, for 2015 and 2014, respectively, were as follows:
 
Principal
 
 
 
Average Effective Interest Rate
 
Value
 
Maturity
 
2015
 
2014
3.875% senior notes
$
1,000

 
2014
 
—
%
 
0.94
%
1.125% senior notes
$
375

 
2017
 
0.68
%
 
0.60
%
5.50% senior notes
$
750

 
2018
 
2.54
%
 
2.49
%
5.125% senior notes
$
1,000

 
2019
 
2.06
%
 
1.97
%
3.125% senior notes
$
1,500

 
2021
 
1.04
%
 
1.06
%
2.45% senior notes
$
1,000

 
2022
 
0.87
%
 
0.82
%
Recorded Value of Property, Plant and Equipment Subject to Capital Leases
The recorded value of our property, plant and equipment subject to capital leases is as follows as of December 31 (in millions):
 
 
2015
 
2014
Vehicles
$
74

 
$
86

Aircraft
2,289

 
2,289

Buildings
207

 
197

Accumulated amortization
(849
)
 
(781
)
Property, plant and equipment subject to capital leases
$
1,721

 
$
1,791

Aggregate Minimum Lease Payments, Annual Principal Payments and Amounts Expected to be Spent for Purchase Commitments
The following table sets forth the aggregate minimum lease payments under capital and operating leases, the aggregate annual principal payments due under our long-term debt and the aggregate amounts expected to be spent for purchase commitments (in millions).
Year
Capital
Leases
 
Operating
Leases
 
Debt
Principal
 
Purchase
Commitments
2016
$
72

 
$
324

 
$
2,978

 
$
257

2017
73

 
263

 
377

 
119

2018
61

 
197

 
751

 
53

2019
59

 
125

 
1,000

 
24

2020
53

 
84

 
547

 
15

After 2020
392

 
266

 
8,039

 
11

Total
710

 
$
1,259

 
$
13,692

 
$
479

Less: imputed interest
(235
)
 
 
 
 
 
 
Present value of minimum capitalized lease payments
475

 
 
 
 
 
 
Less: current portion
(46
)
 
 
 
 
 
 
Long-term capitalized lease obligations
$
429