NOTE 4 - Short- and Long-term Debt and Borrowing Agreements
SHORT-TERM DEBT
At December 31, 1999 and 1998, the company’s total short-term debt outstanding was $30.6 billion and $22.6 billion, respectively, with weighted average interest rates of 5.6% and 5.7%, respectively. At December 31, 1999 and 1998, $6.9 billion and $0.5 billion, respectively, of short-term debt outstanding was covered by interest rate swaps. The year-end weighted average effective interest rates were 5.5% and 5.7% for 1999 and 1998, respectively. The company generally paid fixed rates of interest under the terms of interest rate swaps. Unused lines of credit to support commercial paper borrowings were approximately $8.8 billion at December 31, 1999.
(a) For floating rate debt issuances, the stated and effective interest rates were based on the respective rates at December 31, 1999 and 1998; these rates are not an indication of future interest rates.
(b) Weighted average rates were determined where appropriate.
The above interest rate swaps generally require the company to pay a floating rate, with a predominant index of LIBOR (London Interbank Offered Rate).
The company paid interest (net of amounts capitalized) of $2.6 billion, $2.6 billion and $2.5 billion in 1999, 1998 and 1997, respectively.
Aggregate annual maturities of long-term debt for the five years ending December 31, 2004 are as follows (millions): 2000, $1,810; 2001, $1,500; 2002, $920; 2003, $216; and 2004, $1,217.
