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maturity. We recognized a loss of $445 million on the early retirement, which was recorded in net interest expense in
our Consolidated Statements of Operations.
We periodically obtain short-term financing under our commercial paper program, a form of notes payable.
Commercial Paper
(dollars in millions) 2014 2013 2012
Maximum daily amount outstanding during the year $ 590 $ 1,465 $ 970
Average amount outstanding during the year 129 408 120
Amount outstanding at year-end — 80 970
Weighted average interest rate 0.11% 0.13% 0.16%
No balances were outstanding at any time during 2014 or 2013 under our $2.25 billion revolving credit facility that
expires in October 2018.
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. As
a result of our use of derivative instruments, we have counterparty credit exposure to 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.
In June 2014, we entered into two interest rate swaps, each with a notional amount of $500 million, under which we
pay a variable rate and receive a fixed rate. In March 2014, we entered into an interest rate swap with a notional
amount of $250 million, under which we pay a variable rate and receive a fixed rate. We designated these swaps as
fair value hedges. As of February 1, 2014, one swap was designated as a fair value hedge. No ineffectiveness was
recognized in 2014 or 2013.
Outstanding Interest Rate Swap Summary
Designated
January 31, 2015
De-Designated
(dollars in millions) Pay Floating Pay Floating Pay Fixed
Weighted average rate:
Pay (a) 1-month LIBOR 3.8%
Receive 1.7% 5.7% 1-month LIBOR
Weighted average maturity 4.1 years 1.5 years 1.5 years
Notional $ 1,250 $ 500 $ 500
(a) There are three designated swaps at January 31, 2015. Two swaps have floating pay rates equal to 3-month LIBOR and one swap
has a floating pay rate equal to 1-month LIBOR.
Classification and Assets Liabilities
Fair Value Jan 31, Feb 1, Jan 31, Feb 1,
(millions) Classification 2015 2014 Classification 2015 2014
Designated: Other current assets $ — $ 1 N/A $ — $ —
Other noncurrent assets 27 — N/A — —
De-designated: Other noncurrent assets 38 62 Other noncurrent liabilities 24
Total $ 65 $ 63 $ 24 $ 39
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