Annual report pursuant to Section 13 and 15(d)

DEBT AND FINANCING ARRANGEMENTS (Tables)

v2.4.0.8
DEBT AND FINANCING ARRANGEMENTS (Tables)
 12 Months Ended
Dec. 31, 2013
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, 2013 and 2012 (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
 
2013
 
2012
Commercial paper
$
—

 

 
$
—

 
$
—

Fixed-rate senior notes:
 
 
 
 
 
 
 
4.50% senior notes
1,750

 
2013
 
—

 
1,751

3.875% senior notes
1,000

 
2014
 
1,007

 
1,033

1.125% senior notes
375

 
2017
 
367

 
373

5.50% senior notes
750

 
2018
 
821

 
851

5.125% senior notes
1,000

 
2019
 
1,079

 
1,140

3.125% senior notes
1,500

 
2021
 
1,579

 
1,655

2.45% senior notes
1,000

 
2022
 
913

 
996

6.20% senior notes
1,500

 
2038
 
1,481

 
1,480

4.875% senior notes
500

 
2040
 
489

 
489

3.625% senior notes
375

 
2042
 
367

 
367

8.375% Debentures:
 
 
 
 
 
 
 
8.375% debentures
424

 
2020
 
479

 
512

8.375% debentures
276

 
2030
 
283

 
284

Pound Sterling Notes:
 
 
 
 
 
 
 
     5.50% notes
110

 
2031
 
105

 
103

     5.125% notes
750

 
2050
 
714

 
699

Floating rate senior notes
374

 
2049 – 2053
 
370

 
374

Capital lease obligations
473

 
2014 – 3004
 
473

 
440

Facility notes and bonds
320

 
2015 – 2036
 
320

 
320

Other debt
25

 
2014 - 2022
 
25

 
3

Total debt
$
12,502

 
 
 
10,872

 
12,870

Less: current maturities
 
 
 
 
(48
)
 
(1,781
)
Long-term debt
 
 
 
 
$
10,824

 
$
11,089

Debt Instruments, Average Effective Interest Rate
The average interest rate payable on these notes, including the impact of the interest rate swaps, for 2013 and 2012, respectively, were as follows:
 
Principal
 
 
 
Average Effective Interest Rate
 
Value
 
Maturity
 
2013
 
2012
4.50% senior notes
1,750

 
2013
 
2.43
%
 
2.51
%
3.875% senior notes
1,000

 
2014
 
0.97
%
 
1.14
%
1.125% senior notes
375

 
2017
 
0.64
%
 
0.57
%
5.50% senior notes
750

 
2018
 
2.53
%
 
2.71
%
5.125% senior notes
1,000

 
2019
 
2.01
%
 
2.20
%
3.125% senior notes
1,500

 
2021
 
1.11
%
 
1.28
%
2.45% senior notes
1,000

 
2022
 
0.86
%
 
0.86
%
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):
 
 
2013
 
2012
Vehicles
$
49

 
$
63

Aircraft
2,289

 
2,282

Buildings
181

 
65

Plant Equipment
2

 
2

Technology Equipment
—

 
3

Accumulated amortization
(727
)
 
(611
)
 
$
1,794

 
$
1,804

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
2014
$
67

 
$
310

 
$
1,009

 
$
333

2015
65

 
239

 
107

 
100

2016
58

 
180

 
6

 
50

2017
58

 
146

 
377

 
11

2018
53

 
99

 
750

 
—

After 2018
422

 
242

 
8,030

 
—

Total
723

 
$
1,216

 
$
10,279

 
$
494

Less: imputed interest
(250
)
 
 
 
 
 
 
Present value of minimum capitalized lease payments
473

 
 
 
 
 
 
Less: current portion
(39
)
 
 
 
 
 
 
Long-term capitalized lease obligations
$
434