Debt

Senior Notes

In March 2015, we issued $400 of 2.75% Senior Notes due 2020 (the "2020 Senior Notes") at 99.879% of par and $250 of 4.80% Senior Notes due 2035 (the "2035 Senior Notes") at 99.428% of par, resulting in aggregate net proceeds of approximately $648. Interest on the Senior Notes is payable semi-annually. Debt issuance costs of $6 were paid and deferred in connection with the issuances of these Senior Notes. The proceeds were used for general corporate purposes, which included repayment of a portion of our outstanding borrowings.

Interest Expense and Income

Interest expense and interest income were as follows:



	Three Months Ended March 31,
	2015		2014
Interest expense^(1),(2)	$	89	$	99
Interest income⁽³⁾	92		102

____________


(1)	Includes Equipment financing interest as well as non-financing interest expense that is included in Other expenses, net in the Condensed Consolidated Statements of Income.

(2)

The three months ended March 31, 2015 and 2014 exclude $1 and $1, respectively, of interest on capital lease obligations related to our ITO business, which is held for sale and reported as a discontinued operation as of March 31, 2015. These obligations are expected to be assumed by the purchaser of the ITO business. Refer to Note 5 - Divestitures for additional information regarding this pending sale.


(3)	Includes Finance income as well as other interest income that is included in Other expenses, net in the Condensed Consolidated Statements of Income.

Net (Payments) Proceeds on Debt

Net (payments) proceeds on debt as shown on the Condensed Consolidated Statements of Cash Flows were as follows:



	Three Months Ended March 31,
	2015			2014
Net proceeds on short-term debt	$	204		$	1
Proceeds from issuance of long-term debt	663			18
Payments on long-term debt⁽¹⁾	(1,017		)	(15		)
Net (payments) proceeds on debt	$	(150	)	$	4

____________


(1)	Includes current maturities.