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49
Required Principal Payments
(millions) 2014 2015 2016 2017 2018
Total required principal payments $ 1,001 $ 27 $ 751 $ 2,251 $ 201
Concurrent with the sale of our U.S. consumer credit card receivables portfolio, we repaid $1.5 billion of nonrecourse
debt collateralized by credit card receivables (the 2006/2007 Series Variable Funding Certificate). We also used $1.4
billion of proceeds from the transaction to repurchase, at market value, an additional $970 million of debt during the
first quarter of 2013.
We periodically obtain short-term financing under our commercial paper program, a form of notes payable.
Commercial Paper
(dollars in millions) 2013 2012 2011
Maximum daily amount outstanding during the year $ 1,465 $ 970 $ 1,211
Average amount outstanding during the year 408 120 244
Amount outstanding at year-end 80 970 —
Weighted average interest rate 0.13% 0.16% 0.11%
In October 2011, we entered into a five-year $2.25 billion revolving credit facility, which was amended in 2013 to
extend the expiration date to October 2018. No balances were outstanding at any time during 2013 or 2012.
In June 2012, we issued $1.5 billion of unsecured fixed rate debt at 4.0% that matures in July 2042. Proceeds from
this issuance were used for general corporate purposes.
Substantially all of our outstanding borrowings are senior, unsecured obligations. Most of our long-term debt obligations
contain covenants related to secured debt levels. In addition to a secured debt level covenant, our credit facility also
contains a debt leverage covenant. We are, and expect to remain, in compliance with these covenants, which have
no practical effect on our ability to pay dividends.
19. Derivative Financial Instruments
Our derivative instruments primarily consist of interest rate swaps, which are used to mitigate our interest rate risk.
We have counterparty credit risk resulting from our derivative instruments, primarily with large global financial
institutions. We monitor this concentration of counterparty credit risk on an ongoing basis. See Note 8 for a description
of the fair value measurement of our derivative instruments and their classification on the Consolidated Statements
of Financial Position.
As of February 1, 2014 and February 2, 2013, one swap was designated as a fair value hedge for accounting purposes,
and no ineffectiveness was recognized in 2013 or 2012.
Outstanding Interest Rate Swap Summary February 1, 2014
Designated De-Designated
(dollars in millions) Pay Floating Pay Floating Pay Fixed
Weighted average rate:
Pay three-month LIBOR one-month LIBOR 3.8%
Receive 1.0% 5.7% one-month LIBOR
Weighted average maturity 0.5 years 2.5 years 2.5 years
Notional $ 350 $ 500 $ 500