(In millions)
|
|
December 31,
|
|
|
2013
|
|
2012
|
|
|
|
|
|
|
|
|
Current portion of long-term debt
|
$
|
21
|
|
$
|
76
|
|
|
|
|
|
|
|
|
Long term debt
|
|
|
|
|
|
|
Debentures, 6.75%, due 2013
|
|
|
|
$
|
49
|
|
Debentures, 8.875%, due 2016
|
$
|
67
|
|
|
68
|
|
Debentures, 1.45%, due 2017
|
|
250
|
|
|
249
|
|
Debentures, 6.625%, due 2019
|
|
238
|
|
|
250
|
|
Debentures, 4.25%, due 2020
|
|
276
|
|
|
297
|
|
Debentures, 8.875%, due 2021
|
|
70
|
|
|
71
|
|
Debentures, 3.70%, due 2023
|
|
249
|
|
|
|
|
Medium-term notes, average rate 7.66%, due through 2023
|
|
45
|
|
|
45
|
|
Debentures, 7.00%, due 2024
|
|
99
|
|
|
99
|
|
Debentures, 6.85%, due 2029
|
|
172
|
|
|
173
|
|
Debentures, callable, 7.25%, due 2036
|
|
249
|
|
|
249
|
|
Debentures, 4.70%, due 2037
|
|
250
|
|
|
250
|
|
Debentures, 5.75%, due 2040
|
|
398
|
|
|
398
|
|
Debentures, 4.75%, due 2042
|
|
499
|
|
|
500
|
|
Other, average rate 6.00%, due through 2042
|
|
431
|
|
|
760
|
|
Total long term debt
|
|
3,293
|
|
|
3,458
|
|
Less current portion of long-term debt
|
|
21
|
|
|
76
|
|
Long-term debt
|
$
|
3,272
|
|
$
|
3,382
|
At December 31, 2013 and 2012, the weighted-average interest rate on current portion of long-term debt was 2.6% and 5.3%, respectively.
Based on borrowing rates currently available to us for loans with similar terms and maturities, the fair value of long-term debt was $3.5 billion at December 31, 2013 and $3.7 billion at December 31, 2012. The measurement of the fair value of long term debt was determined using Level 2 inputs.
The following table shows debt maturities by year at December 31, 2013 (in millions)*:
|
|
2014
|
|
2015
|
|
2016
|
|
2017
|
|
2018
|
|
Thereafter
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$21
|
|
$9
|
|
$72
|
|
$257
|
|
$3
|
|
$2,940
|
*Excludes interest rate swap gains and bond discounts.
Debt Issuances and Retirements
2013
|
·
|
In the first quarter of 2013, we amended and restated our existing revolving credit facility. The amended facility provides a $1.0 billion unsecured multi-currency line of credit that expires in March 2018. The facility includes a leverage test (debt to capital ratio) financial covenant. As of December 31, 2013, we were in compliance with this covenant. The proceeds of this credit facility may be used for general corporate purposes, including support for our commercial paper program.
|
|
·
|
In the first quarter of 2013, Corning repaid the aggregate principal amount and accrued interest outstanding on the credit facility entered into in the second quarter of 2011 that allowed Corning to borrow up to Chinese Renminbi (RMB) 4.0 billion. The total amount repaid was approximately $500 million. Upon repayment, this facility was terminated.
|
|
·
|
In the second quarter of 2013, the Company established a commercial paper program on a private placement basis, pursuant to which we may issue short-term, unsecured commercial paper notes up to a maximum aggregate principal amount outstanding at any time of $1 billion. Under this program, the Company may issue the notes from time to time and will use the proceeds for general corporate purposes. The maturities of the notes will vary, but may not exceed 390 days from the date of issue. The interest rates will vary based on market conditions and the ratings assigned to the notes by credit rating agencies at the time of issuance. The Company’s $1 billion revolving credit facility is available to support obligations under the commercial paper program, if needed. At December 31, 2013, we did not have any outstanding commercial paper.
|
|
·
|
In the fourth quarter of 2013, we issued $250 million of 3.70% senior unsecured notes that mature on November 15, 2023. The net proceeds of approximately $248 million were used for general corporate purposes.
|
|
·
|
In the fourth quarter of 2013, we recorded a financing obligation in the approximate amount of $230 million for a new LCD glass substrate facility in China.
|
2012
|
·
|
In the first quarter of 2012, we issued $500 million of 4.75% senior unsecured notes that mature on March 15, 2042 and $250 million of 4.70% senior unsecured notes that mature on March 15, 2037. The net proceeds of $742 million were used for general corporate purposes.
|
|
·
|
In the fourth quarter of 2012, we completed the following debt-related transactions:
|
|
o
|
We issued $250 million of 1.45% senior unsecured notes that mature on November 15, 2017. The net proceeds of $248 million from the offering were used for general corporate purposes.
|
|
o
|
We repurchased $13 million of our 8.875% senior unsecured notes due 2021, $11 million of our 8.875% senior unsecured notes due 2016, and $51 million of our 6.75% senior unsecured notes due 2013. Additionally, we redeemed $100 million of our 5.90% senior unsecured notes due 2014 and $74 million of our 6.20% senior unsecured notes due 2016. We recognized a pre-tax loss of $26 million upon the early redemption of these notes.
|
|
·
|
In 2012, we borrowed the equivalent of approximately $377 million from a Chinese Renminbi credit facility that a wholly-owned subsidiary entered into in the second quarter of 2011.
|
2011
|
·
|
In the second quarter of 2011, a wholly-owned subsidiary entered into a credit facility that allows Corning to borrow up to Chinese Renminbi (RMB) 4.0 billion, or approximately $642 million when translated to United States Dollars. Corning was able to request advances during the eighteen month period beginning on June 30, 2011 (the “Availability Period”). The time period for Corning to draw under the RMB facility expired at the end of 2012. Our financing agreement requires us to repay the aggregate principal amount and accrued interest outstanding at the end of the Availability Period in six installments, with the final payment due in August 2016, five years from the date of the first advance. Corning also has the right to repay this loan in full at pre-determined dates with no pre-payment penalty. In 2011, Corning borrowed
approximately $120 million under this credit facility.
|
|
