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40
LONG-TERM DEBT
December 31, (dollars in millions) 1998 1997
Year-End Year-End
Year-End Effective Year-End Effective
Notional Stated Interest Notional Stated Interest
Outstanding Amount of Rate on Rate with Maturity of Outstanding Amount of Rate on Rate with Maturity of
Balance Swaps Debt (a,b) Swaps (a,b) Swaps Balance Swaps Debt (a,b) Swaps (a,b) Swaps
Notes due
June 23, 2004 $ 499 — 6.75% — — $ 499 — 6.75% — —
Notes due
August 12, 2002 400 $ 400 6.50% 5.40% 2002 400 $ 400 6.50% 5.78% 2002
Notes due
June 15, 2000 300 300 6.125% 5.34% 2000 300 300 6.125% 5.70% 2000
Notes due
November 15, 2001 299 299 6.125% 5.54% 2001 299 299 6.125% 5.98% 2001
Notes due
August 15, 2001 299 — 8.50% — — 299 — 8.50% — —
Floating Rate Notes due
May 1, 2002 399 399 5.27% 5.31% 2002 399 399 5.80% 6.00% 2002
Floating Rate Notes due
December 18, 2001 300 — 5.35% — — 300 — 6.03% — —
Other Fixed Senior Notes 1999-
1998-
due 1998-2022 1,631 1,315 7.10% 6.39% 2012 1,509 1,200 7.59% 6.71%
2005
Other Floating
Senior Notes 1999- 1998-
due 1998-2002 2,170 150 5.52% 5.55% 2000 3,106 320 5.94% 5.98% 1999
Other Floating Rate Notes
due 1999-2004 486 150 6.34% 6.53% 2004 506 150 6.52% 6.70% 2004
Other Fixed Rate Notes
due 1998-2006 236 34 4.95% 4.98% 2006 256 31 4.38% 4.40% 2006
Total $ 7,019 $ 3,047 $ 7,873 $ 3,099
(a) For floating rate debt issuances, the stated and effective interest rates were based on the respective rates at December 31, 1998 and 1997; 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 capi-
talized) of $2.6 billion, $2.5 billion and $2.4 billion in
1998, 1997 and 1996, respectively.
Aggregate annual maturities of long-term debt for
the five years ending December 31, 2003 are as follows
(millions): 1999, $2,126; 2000, $1,316; 2001, $1,464;
2002, $915; and 2003, $145.