5. Long-Term Debt

The Company’s long-term debt consisted of the following at December 31:


(In millions)	2014			2013

Term loan	$	810		$	900
Revolving credit facility		42			-
3.125% senior notes due 2015		300			300
3.125% senior notes due 2016		600			600
6.8% senior notes due 2017		500			500
4.625% senior notes due 2020		449			449
4.75% senior notes due 2021		399			399
3.5% senior notes due 2022		697			697
Other borrowings		6			3

Total debt		3,803			3,848
Less: current maturities		(92	)		(92	)

Long-term debt	$	3,711		$	3,756

The estimated fair value of total debt was $3.9 billion at December 31, 2014 and 2013. The Company was in compliance with all financial debt covenants during 2014. Annual maturities of the Company’s total debt were as follows at December 31, 2014:


(In millions)
Year ending December 31,

2015	$	92
2016		691
2017		591
2018		883
2019		1
Thereafter		1,545

Total	$	3,803

Term Loan

On October 25, 2013, the Company obtained a $900 million term loan under a new loan agreement with a syndicate of banks and used the net proceeds to repay outstanding borrowings under the revolving credit facility. This term loan bears interest at a variable rate based on LIBOR or the bank’s base rate, plus a specified margin based on the Company’s long-term debt rating in effect from time to time, and matures in October 2018. The variable interest rate on the term loan borrowings was 1.4% at December 31, 2014. Scheduled principal payments of $90 million commenced on December 31, 2014 and are due on the last business day of December of each year, with the remaining principal balance of $540 million due in October 2018. The term loan facility contains various restrictions and covenants substantially similar to those contained in the revolving credit facility described below.

Revolving Credit Facility

In connection with the term loan financing described above, on October 25, 2013, the Company entered into an amendment to its existing $2.0 billion revolving credit agreement with a syndicate of banks that conformed certain of its provisions to those in the new term loan agreement and extended its maturity to October 25, 2018. Borrowings under the amended revolving credit facility bear interest at a variable rate based on LIBOR or the bank’s base rate, plus a specified margin based on the Company’s long-term debt rating in effect from time to time. The weighted average variable interest rate on the revolving credit facility borrowings was 1.15% at December 31, 2014. There are no significant commitment fees and no compensating balance requirements. The revolving credit facility contains various restrictions and covenants that require the Company, among other things, to (i) limit its consolidated indebtedness as of the end of each fiscal quarter to no more than three and one-half times consolidated net earnings before interest, taxes, depreciation and amortization and certain other adjustments during the period of four fiscal quarters then ended, and (ii) maintain consolidated net earnings before interest, taxes, depreciation and amortization and certain other adjustments of at least three times consolidated interest expense as of the end of each fiscal quarter for the period of four fiscal quarters then ended.

Senior Notes

In September 2012, the Company issued $700 million aggregate principal amount of 3.5% senior notes due in October 2022. These senior notes, along with the Company’s 3.125% senior notes due in October 2015 and its 4.625% senior notes due in October 2020, pay interest at the stated rates on April 1 and October 1 of each year. The Company’s 3.125% senior notes due in June 2016 and 4.75% senior notes due in June 2021 pay interest at the stated rates on June 15 and December 15 of each year, and the Company’s 6.8% senior notes due in November 2017 pay interest at the stated rate on May 20 and November 20 of each year. The interest rates applicable to the senior notes are subject to an increase of up to two percent in the event that the Company’s credit rating is downgraded below investment grade. The indenture governing the senior notes contains covenants that, among other matters, limit (i) the Company’s ability to consolidate or merge into, or convey, transfer or lease all or substantially all of its properties and assets to, another person; (ii) the Company’s and certain of its subsidiaries’ ability to create or assume liens, and (iii) the Company’s and certain of its subsidiaries’ ability to engage in sale and leaseback transactions. At December 31, 2014, the Company’s 3.125% senior notes due in October 2015 were classified in the consolidated balance sheet as long-term and within the debt maturity schedule above as maturing in October 2018, the date that the Company’s revolving credit facility expires, as the Company has the intent to refinance this debt on a long-term basis and the ability to do so under its revolving credit facility.