Note 9 — Debt and Lines of Credit
The following is a summary of long-term debt at December 31: (in millions)
| |
2013 | 2012 | |||||
|---|---|---|---|---|---|---|---|
|
1.2% Notes, due 2015 (1) |
$ | — | $ | 3,500 | |||
|
Variable Rate Notes, due 2015 (1) |
— | 500 | |||||
|
1.75% Notes, due 2017 (1) |
— | 4,000 | |||||
|
2.0% Notes, due 2018 (1) |
— | 1,000 | |||||
|
5.125% Notes, due 2019 |
947 | 947 | |||||
|
4.125% Notes, due 2020 |
597 | 597 | |||||
|
2.9% Notes, due 2022 (1) |
— | 3,100 | |||||
|
6.15% Notes, due 2037 |
547 | 547 | |||||
|
6.0% Notes, due 2039 |
515 | 515 | |||||
|
5.3% Notes, due 2040 |
694 | 694 | |||||
|
4.4% Notes, due 2042 (1) |
— | 2,600 | |||||
|
Other, including fair value adjustments relating to interest rate hedge contracts designated as fair value hedges |
88 | 85 | |||||
| | | | | | | | |
|
Total, net of current maturities |
3,388 | 18,085 | |||||
|
Current maturities of long-term debt |
9 | 309 | |||||
| | | | | | | | |
|
Total carrying amount |
$ | 3,397 | $ | 18,394 | |||
| | | | | | | | |
| | | | | | | | |
In 2012, Abbott redeemed $7.7 billion of its outstanding notes. Abbott incurred a cost of $1.35 billion to extinguish this debt, net of gains from the unwinding of interest rate swaps related to the debt. In 2012, AbbVie Inc., a wholly owned subsidiary of Abbott, issued $14.7 billion of long-term debt with maturities ranging from 3 to 30 years. The debt issued by AbbVie Inc. was guaranteed by Abbott with the guarantee expiring when AbbVie Inc. separated from Abbott on January 1, 2013.
Principal payments required on long-term debt outstanding at December 31, 2013 are $9 million in 2014, $10 million in 2015, $3 million in 2016, $1 million in 2017, $1 million in 2018 and $3.3 billion in 2019 and thereafter.
At December 31, 2013, Abbott's long-term debt rating was A+ by Standard & Poor's Corporation and A1 by Moody's Investors Service. Abbott has readily available financial resources, including unused lines of credit of $5.0 billion that support commercial paper borrowing arrangements which expire in 2017. Abbott's weighted-average interest rate on short-term borrowings was 0.2% at December 31, 2013 and 0.4% at December 31, 2012 and 2011.