SHORT-TERM BORROWINGS AND CAPITAL LEASE OBLIGATIONS
|
| | | | | | |
December 31, | 2013 | 2012 |
Other loans-various currencies | 44 |
| 20 |
|
Long-term debt payable within one year | 1,674 |
| 1,252 |
|
Capital lease obligations | 3 |
| 3 |
|
| $ | 1,721 |
| $ | 1,275 |
|
The estimated fair value of the company's short-term borrowings, including interest rate financial instruments, was determined using level 2 inputs within the fair value hierarchy, as described in Note 1 to the Consolidated Financial Statements. Based on quoted market prices for the same or similar issues, or on current rates offered to the company for debt of the same remaining maturities, the fair value of the company's short-term borrowings was $1,730 and $1,300 at December 31, 2013 and 2012, respectively.
Unused bank credit lines were approximately $4,400 and $4,300 at December 31, 2013 and 2012, respectively. These lines are available to support short-term liquidity needs and general corporate purposes including letters of credit. Outstanding letters of credit were $352 and $503 at December 31, 2013 and 2012, respectively. These letters of credit support commitments made in the ordinary course of business.
The weighted-average interest rate on short-term borrowings outstanding at December 31, 2013 and 2012 was 3.0% and 4.8%, respectively. The decrease in the interest rate for 2013 was primarily due to long-term debt maturing within one year.
