Indebtedness:

Short-term Borrowings:

At June 30, 2014 and December 31, 2013, PMI’s short-term borrowings, consisting of commercial paper and bank loans to certain PMI subsidiaries, had a carrying value of $1,941 million and $2,400 million, respectively. The fair value of PMI’s short-term borrowings, based on current market interest rates, approximates carrying value.

Long-term Debt:

At June 30, 2014 and December 31, 2013, PMI’s long-term debt consisted of the following:



(in millions)	June 30, 2014		December 31, 2013
U.S. dollar notes, 0.277% to 6.375% (average interest rate 3.878%), due through 2043	$	15,259	$	16,500
Foreign currency obligations:
Euro notes, 1.750% to 5.875% (average interest rate 3.104%), due through 2033	10,253		7,303
Swiss franc notes, 0.750% to 2.000% (average interest rate 1.217%), due through 2024	1,871		1,289
Other (average interest rate 3.644%), due through 2024	185		186
	27,568		25,278
Less current portion of long-term debt	407		1,255
	$	27,161	$	24,023

Other foreign currency debt above includes mortgage debt in Switzerland and capital lease obligations at June 30, 2014 and December 31, 2013.

PMI's debt issuances in the first six months of 2014 were as follows:



(in millions)
Type		Face Value ^(d)	Interest Rate		Issuance	Maturity

EURO notes	^(a)	€750 (approximately $1,029)	1.875	%	March 2014	March 2021
EURO notes	^(a)	€1,000 (approximately $1,372)	2.875	%	March 2014	March 2026
EURO notes	^(b)	€500 (approximately $697)	2.875	%	May 2014	May 2029
Swiss franc notes	^(c)	CHF275 (approximately $311)	0.750	%	May 2014	December 2019
Swiss franc notes	^(b)	CHF250 (approximately $283)	1.625	%	May 2014	May 2024

^(a) Interest on these notes is payable annually in arrears beginning in March 2015.

^(b) Interest on these notes is payable annually in arrears beginning in May 2015.

^(c) Interest on these notes is payable annually in arrears beginning in December 2014.

^(d)U.S. dollar equivalents for foreign currency notes were calculated based on exchange rates on the date of issuance.

The net proceeds from the sale of the securities listed in the table above will be used for general corporate purposes.

Credit Facilities:

On January 31, 2014, PMI extended the term of its $2.0 billion 364-day revolving credit facility until February 10, 2015. On February 28, 2014, PMI replaced its $2.5 billion multi-year revolving credit facility, expiring March 31, 2015, with a new $2.5 billion multi-year credit facility, expiring on February 28, 2019.

At June 30, 2014, PMI's total committed credit facilities were as follows:

(in billions)



Type	Committed Credit Facilities
364-day revolving credit, expiring February 10, 2015	$	2.0
Multi-year revolving credit, expiring February 28, 2019	2.5
Multi-year revolving credit, expiring October 25, 2016	3.5
Total facilities	$	8.0

At June 30, 2014, there were no borrowings under these committed credit facilities, and the entire committed amounts were available for borrowing.