Commercial Paper and Long-Term Debt

Commercial paper and senior unsecured long-term debt consisted of the following:



	December 31, 2014						December 31, 2013
(in millions, except percentages)	Par Value		Carrying Value		Fair Value		Par Value		Carrying Value		Fair Value
Commercial paper	$	321	$	321	$	321	$	1,115	$	1,115	$	1,115
4.750% notes due February 2014	—		—		—		172		173		173
5.000% notes due August 2014	—		—		—		389		397		400
Floating-rate notes due August 2014	—		—		—		250		250		250
4.875% notes due March 2015 (a)	416		419		419		416		431		436
0.850% notes due October 2015 (a)	625		625		627		625		624		628
5.375% notes due March 2016 (a)	601		623		634		601		641		657
1.875% notes due November 2016 (a)	400		397		406		400		398		408
5.360% notes due November 2016	95		95		103		95		95		107
6.000% notes due June 2017 (a)	441		466		489		441		479		506
1.400% notes due October 2017 (a)	625		616		624		625		613		617
6.000% notes due November 2017 (a)	156		164		175		156		168		178
1.400% notes due December 2017 (a)	750		745		749		—		—		—
6.000% notes due February 2018 (a)	1,100		1,106		1,238		1,100		1,116		1,271
1.625% notes due March 2019 (a)	500		496		493		500		489		481
2.300% notes due December 2019 (a)	500		496		502		—		—		—
3.875% notes due October 2020 (a)	450		450		477		450		435		474
4.700% notes due February 2021 (a)	400		413		450		400		416		436
3.375% notes due November 2021 (a)	500		496		519		500		472		494
2.875% notes due December 2021 (a)	750		748		759		—		—		—
2.875% notes due March 2022 (a)	1,100		1,042		1,104		1,100		981		1,046
0.000% notes due November 2022	15		10		11		15		9		10
2.750% notes due February 2023 (a)	625		604		613		625		563		572
2.875% notes due March 2023 (a)	750		777		745		750		729		698
5.800% notes due March 2036	850		845		1,052		850		845		935
6.500% notes due June 2037	500		495		670		500		495		593
6.625% notes due November 2037	650		646		888		650		645		786
6.875% notes due February 2038	1,100		1,085		1,544		1,100		1,084		1,370
5.700% notes due October 2040	300		298		378		300		298		329
5.950% notes due February 2041	350		348		455		350		348		397
4.625% notes due November 2041	600		593		646		600		593		567
4.375% notes due March 2042	502		486		536		502		486		459
3.950% notes due October 2042	625		611		621		625		611		530
4.250% notes due March 2043	750		740		786		750		740		673
Total commercial paper and long-term debt	$	17,347	$	17,256	$	19,034	$	16,952	$	16,739	$	17,596


(a)	Fixed-rate debt instruments hedged with interest rate swap contracts. See below for more information on the Company’s interest rate swaps.

The Company’s long-term debt obligations also included $150 million and $121 million of other financing obligations, of which $34 million were current as of both December 31, 2014 and December 31, 2013.

Maturities of commercial paper and long-term debt for the years ending December 31 are as follows:



(in millions)
2015	$	1,396
2016	1,121
2017	1,980
2018	1,103
2019	1,027
Thereafter	10,870

Commercial Paper and Bank Credit Facilities

Commercial paper consists of short-duration, senior unsecured debt privately placed on a discount basis through broker-dealers. As of December 31, 2014, the Company’s outstanding commercial paper had a weighted-average annual interest rate of 0.4%.

The Company has $3.0 billion five-year and $1.0 billion 364-day revolving bank credit facilities with 23 banks, which mature in November 2019 and November 2015, respectively. These facilities provide liquidity support for the Company’s $4.0 billion commercial paper program and are available for general corporate purposes. There were no amounts outstanding under these facilities as of December 31, 2014. The interest rates on borrowings are variable based on term and are calculated based on the London Interbank Offered Rate (LIBOR) plus a credit spread based on the Company’s senior unsecured credit ratings. As of December 31, 2014, the annual interest rates on the bank credit facilities, had they been drawn, would have ranged from 1.0% to 1.2%.

Debt Covenants

The Company’s bank credit facilities contain various covenants including requiring the Company to maintain a debt to debt-plus-equity ratio of not more than 50%. The Company was in compliance with its debt covenants as of December 31, 2014.

Interest Rate Swap Contracts

The Company uses interest rate swap contracts to convert a portion of its interest rate exposure from fixed rates to floating rates to more closely align interest expense with interest income received on its variable rate financial assets. The floating rates are benchmarked to LIBOR. The swaps are designated as fair value hedges on the Company’s fixed-rate debt. Since the critical terms of the swaps match those of the debt being hedged, they are considered to be highly effective hedges and all changes in the fair values of the swaps are recorded as adjustments to the carrying value of the related debt with no net impact recorded on the Consolidated Statements of Operations.

The following table summarizes the location and fair value of the interest rate swap fair value hedges on the Company’s Consolidated Balance Sheet:



Type of Fair Value Hedge	Notional Amount		Fair Value		Balance Sheet Location
	(in billions)		(in millions)
December 31, 2014
Interest rate swap contracts	$	10.7	$	62	Other assets
			55		Other liabilities
December 31, 2013
Interest rate swap contracts	$	6.2	$	163	Other liabilities

The following table provides a summary of the effect of changes in fair value of fair value hedges on the Company’s Consolidated Statements of Operations:



	For the Years Ended December 31,
(in millions)	2014			2013			2012
Hedge - interest rate swap gain (loss) recognized in interest expense	$	170		$	(166	)	$	3
Hedged item - long-term debt (loss) gain recognized in interest expense	(170		)	166			(3		)
Net impact on the Company’s Consolidated Statements of Operations	$	—		$	—		$	—