Annual report pursuant to Section 13 and 15(d)

DEBT AND FINANCING ARRANGEMENTS (Tables)

v2.4.1.9
DEBT AND FINANCING ARRANGEMENTS (Tables)
 12 Months Ended
Dec. 31, 2014
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, 2014 and 2013 (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
 
2014
 
2013
Commercial paper
$
772

 
2015
 
$
772

 
$
—

Fixed-rate senior notes:
 
 
 
 
 
 
 
3.875% senior notes
1,000

 
2014
 
—

 
1,007

1.125% senior notes
375

 
2017
 
370

 
367

5.50% senior notes
750

 
2018
 
802

 
821

5.125% senior notes
1,000

 
2019
 
1,076

 
1,079

3.125% senior notes
1,500

 
2021
 
1,617

 
1,579

2.45% senior notes
1,000

 
2022
 
977

 
913

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
 
480

 
479

8.375% debentures
276

 
2030
 
283

 
283

Pound Sterling Notes:
 
 
 
 
 
 
 
     5.50% notes
103

 
2031
 
99

 
105

     5.125% notes
706

 
2050
 
673

 
714

Floating rate senior notes
463

 
2049 – 2064
 
459

 
370

Capital lease obligations
505

 
2015 – 3005
 
505

 
473

Facility notes and bonds
320

 
2015 – 2036
 
320

 
320

Other debt
17

 
2015 – 2022
 
17

 
25

Total debt
$
11,586

 
 
 
10,787

 
10,872

Less: current maturities
 
 
 
 
(923
)
 
(48
)
Long-term debt
 
 
 
 
$
9,864

 
$
10,824

Debt Instruments, Average Effective Interest Rate
The average interest rate payable on these notes, including the impact of the interest rate swaps, for 2014 and 2013, respectively, were as follows:
 
Principal
 
 
 
Average Effective Interest Rate
 
Value
 
Maturity
 
2014
 
2013
3.875% senior notes
1,000

 
2014
 
0.94
%
 
0.97
%
1.125% senior notes
375

 
2017
 
0.60
%
 
0.64
%
5.50% senior notes
750

 
2018
 
2.49
%
 
2.53
%
5.125% senior notes
1,000

 
2019
 
1.97
%
 
2.01
%
3.125% senior notes
1,500

 
2021
 
1.06
%
 
1.11
%
2.45% senior notes
1,000

 
2022
 
0.82
%
 
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):
 
 
2014
 
2013
Vehicles
$
86

 
$
49

Aircraft
2,289

 
2,289

Buildings
197

 
181

Plant Equipment
—

 
2

Technology Equipment
—

 
—

Accumulated amortization
(781
)
 
(727
)
 
$
1,791

 
$
1,794

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
2015
$
75

 
$
323

 
$
876

 
$
269

2016
74

 
257

 
8

 
195

2017
67

 
210

 
377

 
71

2018
62

 
150

 
752

 
19

2019
59

 
90

 
1,000

 
8

After 2019
435

 
274

 
7,068

 
26

Total
772

 
$
1,304

 
$
10,081

 
$
588

Less: imputed interest
(267
)
 
 
 
 
 
 
Present value of minimum capitalized lease payments
505

 
 
 
 
 
 
Less: current portion
(47
)
 
 
 
 
 
 
Long-term capitalized lease obligations
$
458