Debt

The Company’s outstanding debt is as follows:



December 31,
(In millions of dollars)	2013		2012
Short-term:
Current portion of long-term debt	$	334	$	260
Long-term:
Senior notes – 4.850% due 2013	—		250
Senior notes – 5.875% due 2033	297		296
Senior notes – 5.375% due 2014	323		326
Senior notes – 5.75% due 2015	230		479
Senior notes – 2.30% due 2017	249		249
Senior notes – 9.25% due 2019	399		398
Senior notes – 4.80% due 2021	497		497
Senior notes - 2.55% due 2018	248		—
Senior notes - 4.05% due 2023	247		—
Mortgage – 5.70% due 2035	413		422
Term Loan Facility - due 2016	50		—
Other	2		1
	2,955		2,918
Less current portion	334		260
	$	2,621	$	2,658

The senior notes in the table above are publically registered by the Company with no guarantees attached.

In September 2013, the Company issued $250 million of 2.55% five-year senior notes and $250 million of 4.05% ten-year senior notes. The net proceeds of this offering were used for general corporate purposes, which included a partial redemption of $250 million of the outstanding principal amount of the existing 5.75% senior notes due 2015. The redemption settled in October 2013 with a total cash outflow of approximately $275 million including a $24 million cost for early redemption.

In February 2013, the Company repaid its 4.850% fixed rate $250 million senior notes that matured using cash.

During the first quarter of 2012, the Company repaid its 6.25% fixed rate $250 million senior notes that matured. The Company used proceeds from the issuance of 2.3% five-year $250 million senior notes in the first quarter of 2012 to fund the maturing notes.

The Company and certain of its foreign subsidiaries maintain a $1.0 billion multi-currency unsecured revolving credit facility which expires in October 2016. The interest rate on this facility is based on LIBOR plus a fixed margin which varies with the Company's credit ratings. This facility requires the Company to maintain certain coverage and leverage ratios which are tested quarterly. There were no borrowings outstanding under this facility at December 31, 2013.

In December 2012, the Company closed on a $50 million, three-year term loan facility. The interest rate on this facility at December 31, 2013 was 1.29%, which is based on LIBOR plus a fixed margin which varies with the Company's credit ratings. The facility requires the Company to maintain coverage ratios and leverage ratios consistent with the revolving credit facility discussed above. The Company had $50 million of borrowings under this facility at December 31, 2013.

Derivative Financial Instruments

In February 2011, the Company entered into two $125 million 3.5-year interest rate swaps to hedge changes in the fair value of the first $250 million of the outstanding 5.375% senior notes due in 2014.

Under the terms of the swaps, the counter-parties will pay the Company a fixed rate of 5.375% and the Company will pay interest at a floating rate of three-month LIBOR plus a fixed spread of 3.726%. The maturity date of the senior notes and the swaps match exactly. The floating rate resets quarterly, with every second reset occurring on the interest payment date of the senior notes. The swaps net settle every six months on the senior note coupon payment dates. The swaps are designated as fair value hedging instruments and are deemed to be perfectly effective in accordance with applicable accounting guidance. The fair value of the swaps at inception was zero and subsequent changes in the fair value of the interest rate swaps are reflected in the carrying value of the interest rate swaps and in the consolidated balance sheet. The carrying value of the debt on the balance sheet was adjusted by an equal amount. The gain or loss on the hedged item (fixed rate debt) and the offsetting gain or (loss) on the interest rate swaps for the periods ended December 31, 2013 and 2012 is as follows:



	2013							2012
Income statement classification (In millions of dollars)	Loss on Swaps			Gain on Notes		Net Income Effect		Loss on Swaps			Gain on Notes		Net Income Effect
Other Operating Expenses	$	(3	)	$	3	$	—	$	(1	)	$	1	$	—

The amounts earned and owed under the swap agreements are accrued each period and are reported in interest expense. There was no ineffectiveness recognized in the periods presented.

Additional credit facilities, guarantees and letters of credit are maintained with various banks, primarily related to operations located outside the United States, aggregating $282 million at December 31, 2013 and $247 million at December 31, 2012. There was $1 million outstanding borrowings under these facilities at December 31, 2013 and no outstanding borrowings under these facilities at December 31, 2012.

Scheduled repayments of long-term debt in 2014 and in the four succeeding years are $331 million, $241 million, $61 million, $262 million and $262 million, respectively.

Fair value of Short-term and Long-term Debt

The estimated fair value of the Company’s short-term and long-term debt is provided below. Certain estimates and judgments were required to develop the fair value amounts. The fair value amounts shown below are not necessarily indicative of the amounts that the Company would realize upon disposition, nor do they indicate the Company’s intent or need to dispose of the financial instrument.



	December 31, 2013				December 31, 2012
(In millions of dollars)	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Short-term debt	$	334	$	334	$	260	$	261
Long-term debt	$	2,621	$	2,819	$	2,658	$	2,986

The fair value of the Company’s short-term debt, which consists primarily of term debt maturing within the next year, approximates its carrying value. The estimated fair value of a primary portion of the Company’s long-term debt is based on discounted future cash flows using current interest rates available for debt with similar terms and remaining maturities. Short and long-term debt would be classified as Level 2 in the fair value hierarchy.