Debt

The carrying value of long-term debt at June 30, 2015 and December 31, 2014 consists of the following:



	June 30, 2015			December 31, 2014
Senior unsecured notes:
1.250%, due 2015	$	624.9		$	624.3
2.375%, due 2017	400.0			398.9
5.875%, due 2017	527.2			526.7
1.875%, due 2018	621.6			616.4
2.300%, due 2018	645.1			644.3
2.250%, due 2019	843.0			842.1
7.000%, due 2019	438.7			438.5
4.350%, due 2020	698.8			695.3
3.700%, due 2021	695.9			695.6
3.125%, due 2022	842.2			841.6
3.300%, due 2023	991.8			991.2
3.500%, due 2024	790.4			789.8
5.950%, due 2034	444.4			444.4
5.850%, due 2036	767.8			767.7
6.375%, due 2037	639.5			639.3
5.800%, due 2040	193.7			206.4
4.625%, due 2042	885.6			885.4
4.650%, due 2043	985.2			985.0
4.650%, due 2044	790.3			790.1
5.100%, due 2044	593.2			593.1
4.850%, due 2054	246.6			246.5
Remarketable subordinated notes:
1.900%, due 2028	1,235.5			—
Surplus notes:
9.000%, due 2027	24.9			24.9
Senior convertible debentures:
2.750%, due 2042	469.6			956.4
Variable rate debt:
Commercial paper program	697.4			—
Total long-term debt	16,093.3			14,643.9
Current portion of long-term debt	(624.9		)	(624.3		)
Long-term debt, less current portion	$	15,468.4		$	14,019.6

We generally issue senior unsecured notes for long-term borrowing purposes. At June 30, 2015, we had $13,665.9 outstanding under these notes. During the three months ended March 31, 2015, we repurchased $13.0 of outstanding principal balance of certain senior unsecured notes, plus applicable premium for early redemption plus accrued and unpaid interest, for cash totaling $16.2. We recognized a loss on extinguishment of debt of $3.4. We did not repurchase any senior unsecured noted during the three months ended June 30, 2015.

On May 12, 2015, we issued 25.0 Equity Units, pursuant to an underwriting agreement dated May 6, 2015, in an aggregate principal amount of $1,250.0. Each Equity Unit has a stated amount of $50 (whole dollars) and consists of a purchase contract obligating the holder to purchase a certain number of shares of our common stock on May 1, 2018, subject to earlier termination or settlement, for a price in cash of $50 (whole dollars); and a 5% undivided beneficial ownership interest in $1,000 (whole dollars) principal amount of our 1.900% remarketable subordinated notes, or RSNs, due 2028. We received $1,228.8 in cash proceeds from issuance of the Equity Units, net of underwriting discounts and commissions and offering expenses payable by us, and recorded $1,250.0 in long-term debt. The proceeds will be used for general corporate purposes, including, but not limited to, the repurchase of a portion of our outstanding senior convertible debentures due 2042. On May 1, 2018, if the applicable market value of our common stock is equal to or greater than $207.805 per share, the settlement rate will be 0.2406 shares of our common stock. If the applicable market value of our common stock is less than $207.805 per share but greater than $143.865 per share, the settlement rate will be a number of shares of our common stock equal to $50 (whole dollars) divided by the applicable market value of our common stock. If the applicable market value of common stock is less than or equal to $143.865, the settlement rate will be 0.3475 shares of our common stock. Holders of the Equity Units may elect early settlement at a minimum settlement rate of 0.2406 shares of our common stock for each purchase contract being settled. The RSNs are pledged as collateral to secure the purchase of common stock under the related stock purchase contracts. Quarterly interest payments on the RSNs will commence on August 1, 2015, subject to any termination event or optional re-marketing. The RSNs are scheduled to be remarketed during the five business day period ending on April 26, 2018 and may be remarketed earlier, at our election, during the period from January 30, 2018 through April 12, 2018. Following the re-marketing, the interest rate on the RSNs will be set to current market rates and interest will be payable semi-annually. At June 30, 2015, the present value of the stock purchase contract liability was $120.9 and is included in other current liabilities and other noncurrent liabilities with a corresponding offset to additional paid-in capital in our consolidated balance sheet. Contract adjustment payments will commence on August 1, 2015 at a rate of 3.350% per annum on the stated amount per Equity Unit. Subject to certain specified terms and conditions, we have the right to defer payments on all or part the contract adjustment payments but not beyond the contract settlement date and we have the right to defer payment of interest on the RSNs but not beyond the purchase contract settlement date or maturity date.

We have an unsecured surplus note with an outstanding principal balance of $24.9 at June 30, 2015.

We have a senior revolving credit facility, or the Facility, with certain lenders for general corporate purposes. The Facility, as amended, provides credit up to $2,000.0, and matures on September 29, 2016. There were no amounts outstanding under this Facility as of June 30, 2015 or at any time during the three and six months then ended.

We have an authorized commercial paper program of up to $2,500.0, the proceeds of which may be used for general corporate purposes. At June 30, 2015, we had $697.4 outstanding under this program.

We have outstanding senior convertible debentures due 2042, or the Debentures, which are governed by an indenture between us and The Bank of New York Mellon Trust Company, N.A., as trustee. We have accounted for the Debentures in accordance with the cash conversion guidance in FASB guidance for debt with conversion and other options. As a result, the value of the embedded conversion option has been bifurcated from its debt host and recorded as a component of additional paid-in capital (net of deferred taxes and equity issuance costs) in our consolidated balance sheets. During the three months ended June 30, 2015, we repurchased $700.5 aggregate principal balance of the Debentures. In addition, $66.5 aggregate principal balance was surrendered for conversion by certain holders in accordance with the terms and provisions of the indenture governing the Debentures. We elected to settle the excess of the principal amount of the repurchases and the conversions with cash for total payments of $1,646.3. We recognized a gain on extinguishment of debt of $2.9 based on the fair values of the debt on the repurchase and conversion settlement dates. The following table summarizes at June 30, 2015 the related balances, conversion rate and conversion price of the Debentures:



Outstanding principal amount	$	733.0
Unamortized debt discount	$	254.7
Net debt carrying amount	$	469.6
Equity component carrying amount	$	265.7
Conversion rate (shares of common stock per $1,000 of principal amount)	13.4231
Effective conversion price (per $1,000 of principal amount)	$	74.4977

We have $540.0 in outstanding short-term borrowings from various Federal Home Loan Banks at June 30, 2015 with fixed interest rates of 0.194%.