Short-Term Debt
|
| | | | | | | | |
| At December 31 | |
| 2013 |
| | | 2012 |
|
Commercial paper* | $ | 5,130 |
| | | $ | 2,783 |
|
Notes payable to banks and others with
originating terms of one year or less | 49 |
| | | 23 |
|
Current maturities of long-term debt | — |
| | | 20 |
|
Current maturities of long-term
capital leases | 34 |
| | | 38 |
|
Redeemable long-term obligations | | | | |
Long-term debt | 3,152 |
| | | 3,151 |
|
Capital leases | 9 |
| | | 12 |
|
Subtotal | 8,374 |
| | | 6,027 |
|
Reclassified to long-term debt | (8,000 | ) | | | (5,900 | ) |
Total short-term debt | $ | 374 |
| | | $ | 127 |
|
| |
* | Weighted-average interest rates at December 31, 2013 and 2012, were 0.09 percent and 0.13 percent, respectively. |
Redeemable long-term obligations consist primarily of tax-exempt variable-rate put bonds that are included as current liabilities because they become redeemable at the option of the bondholders during the year following the balance sheet date.
The company may periodically enter into interest rate swaps on a portion of its short-term debt. At December 31, 2013, the company had no interest rate swaps on short-term debt.
At December 31, 2013, the company had $8,000 in committed credit facilities with various major banks, expiring in December 2016, that enable the refinancing of short-term obligations on a long-term basis. These facilities support commercial paper borrowing and can also be used for general corporate purposes. The company’s practice has been to continually replace expiring commitments with new commitments on substantially the same terms, maintaining levels management believes appropriate. Any borrowings under the facilities would be unsecured indebtedness at interest rates based on the London Interbank Offered Rate or an average of base lending rates published by specified banks and on terms reflecting the company’s strong credit rating. No borrowings were outstanding under these facilities at December 31, 2013.
At December 31, 2013 and 2012, the company classified $8,000 and $5,900, respectively, of short-term debt as long-term. Settlement of these obligations is not expected to require the use of working capital within one year, as the company has both the intent and the ability, as evidenced by committed credit facilities, to refinance them on a long-term basis.
