LONG-TERM BORROWINGS AND CAPITAL LEASE OBLIGATIONS



December 31,	2012		2011
U.S. dollar:
Medium-term notes due 2013 – 2041^1,2	$	374	$	401
4.75% notes due 2012²	—		400
5.00% notes due 2013²	250		250
5.00% notes due 2013²	749		747
5.875% notes due 2014	170		170
1.75% notes due 2014	400		400
Floating rate notes due 2014³	600		600
4.875% notes due 2014	499		499
3.25% notes due 2015⁴	1,054		1,065
4.75% notes due 2015	400		399
1.95% notes due 2016	497		496
2.75% notes due 2016	499		499
5.25% notes due 2016	599		599
6.00% notes due 2018⁵	1,383		1,405
5.75% notes due 2019	499		499
4.625% notes due 2020	997		997
3.625% notes due 2021	999		999
4.25% notes due 2021	499		499
6.50% debentures due 2028	299		299
5.60% notes due 2036	395		395
4.90% notes due 2041	493		493
Other loans (average interest rate of 3.9 percent)²	36		8
Other loans-various currencies²	2		4
	11,693		12,123
Less short-term portion of long-term debt	1,252		410
	10,441		11,713
Capital lease obligations	24		23
Total	$	10,465	$	11,736


^1.	Average interest rates on medium-term notes at December 31, 2012 and 2011 were 4.0% and 3.7%, respectively.


^2.	Includes long-term debt due within one year.


^3.	Interest rate on floating rate notes at December 31, 2012 and 2011 was 0.7% and 1.0%, respectively.

^4.

At December 31, 2012 and 2011, the company had outstanding interest rate swap agreements with gross notional amounts of $1,000. Over the remaining terms of the notes, the company will receive fixed payments equivalent to the underlying debt and pay floating payments based on USD LIBOR (London Interbank Offered Rate). The fair value of outstanding swaps was an asset of $55 and $66 at December 31, 2012 and 2011, respectively.


^5.	During 2008, the interest rate swap agreement associated with these notes was terminated. The gain will be amortized over the remaining life of the bond, resulting in an effective yield of 3.85%.

Maturities of long-term borrowings are $1,669, $1,455, $1,596 and $0 for the years 2014, 2015, 2016 and 2017, respectively, and $5,721 thereafter.

The estimated fair value of the company's long-term borrowings, including interest rate financial instruments, was determined using level 2 inputs within the fair value hierarchy, as described in Note 1 to the Consolidated Financial Statements. Based on quoted market prices for the same or similar issues, or on current rates offered to the company for debt of the same remaining maturities, the fair value of the company's long-term borrowings was $11,715 and $13,050 at December 31, 2012 and 2011, respectively.