|
At December 31 |
|
2008 |
2007 |
| Commercial paper* |
$5,742 |
$3,030 |
Notes payable to banks and others with originating
terms of one year or less |
149 |
219 |
| Current maturities of long-term debt |
429 |
850 |
| Current maturities of long-term capital leases |
78 |
73 |
| Redeemable long-term obligations |
|
|
| Long-term debt |
1,351 |
1,351 |
| Capital leases |
19 |
21 |
| Subtotal |
7,768 |
5,544 |
| Reclassified to long-term debt |
(4,950) |
(4,382) |
| Total short-term debt |
$2,818 |
$1,162 |
Redeemable long-term obligations consist primarily
of tax-exempt variable-rate put bonds that are included as
current liabilities because they become redeemable at the
option of the bondholders within one year following the balance sheet date.
The company periodically enters into interest rate swaps
on a portion of its short-term debt. See Note 7 for information concerning the company’s debt-related
derivative
activities.
At December 31, 2008, the company had $4,950 of committed
credit facilities with banks worldwide, which permit
the company to refinance short-term obligations on a long-term
basis. The facilities support the company's commercial
paper borrowings. Interest on borrowings under the terms of
specific agreements may be based on the London Interbank
Offered Rate or bank prime rate. No amounts were outstanding
under these credit agreements during 2008 or at year-end.
At December 31, 2008 and 2007, the company classified
$4,950 and $4,382, respectively, of short-term debt as
long-term. Settlement of these obligations is not expected to
require the use of working capital in 2009, as the company
has both the intent and the ability to refinance this debt on
a long-term basis.