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Debt (Tables)

12 Months Ended

Dec. 31, 2011

Debt

Components of debt

		December 31,			December 31,
		2011			2010
SHORT-TERM DEBT
Credit Facilities (1):
Senior secured hedged inventory facility bearing a weighted-average interest rate of 1.5% and 2.1% at December 31, 2011 and December 31, 2010, respectively		$	75		$	500
PAA senior unsecured revolving credit facility, bearing a weighted-average interest rate of 1.6% and 0.7% at December 31, 2011 and December 31, 2010, respectively (2)		32			824
PNG senior unsecured revolving credit facility, bearing a weighted-average interest rate of 2.1% and 3.2% at December 31, 2011 and December 31, 2010, respectively (3)		68			—
4.25% senior notes due September 2012 (4)		500			—
Other		4			2
Total short-term debt		679			1,326

LONG-TERM DEBT
Senior Notes:
4.25% senior notes due September 2012 (4)		—			500
7.75% senior notes due October 2012		—			200
5.63% senior notes due December 2013		250			250
5.25% senior notes due June 2015		150			150
3.95% senior notes due September 2015		400			400
5.88% senior notes due August 2016		175			175
6.13% senior notes due January 2017		400			400
6.50% senior notes due May 2018		600			600
8.75% senior notes due May 2019		350			350
5.75% senior notes due January 2020		500			500
5.00% senior notes due February 2021		600			—
6.70% senior notes due May 2036		250			250
6.65% senior notes due January 2037		600			600
Unamortized discounts		(13		)	(12		)
Senior notes, net of unamortized discounts		4,262			4,363
Credit Facilities and Other:
PNG senior unsecured revolving credit facility, bearing a weighted-average interest rate of 2.1% and 3.2% at December 31, 2011 and December 31, 2010, respectively (3)		54			260
PNG GO Zone term loans, bearing a weighted-average interest rate of 1.5% at December 31, 2011		200			—
Other		4			8
Total long-term debt (2)		4,520			4,631
Total debt (5)		$	5,199		$	5,957

(1) During August 2011, we renewed, extended or refinanced our principal bank credit facilities, including PNG’s credit facility. See “Credit Facilities” below for further discussion.

(2) We classify as short-term certain borrowings under our PAA senior unsecured revolving credit facility. These borrowings are primarily designated as working capital borrowings, must be repaid within one year and are primarily for hedged LPG and crude oil inventory and NYMEX and ICE margin deposits.

(3) PNG classifies as short-term debt any borrowings under the PNG senior unsecured revolving credit facility that have been designated as working capital borrowings and must be repaid within one year. Such borrowings are primarily related to a portion of PNG’s hedged natural gas inventory.

(4) Our $500 million 4.25% senior notes will mature in September 2012 and thus are classified as short-term at December 31, 2011. The proceeds from the the issuance of these notes are being used to supplement capital available from our hedged inventory facility to fund working capital needs associated with base levels of routine waterborne cargos and for seasonal LPG inventory requirements. At December 31, 2010, approximately $466 million had been used to fund hedged inventory and would have been classified as short-term debt if funded on our credit facilities. After the $500 million 4.25% senior notes mature, we intend to use our recently renewed and expanded credit facilities to finance hedged inventory. Concurrent with the issuance of these senior notes, we entered into interest rate swaps whereby we receive fixed payments at 4.25% and pay three-month LIBOR plus a spread. See Note 6 for further discussion of our interest rate swaps.

(5) Our fixed-rate senior notes have a face value of approximately $4.8 billion and $4.4 billion as of December 31, 2011 and December 31, 2010, respectively. We estimate the aggregate fair value of these notes as of December 31, 2011 and December 31, 2010 to be approximately $5.4 billion and $4.7 billion, respectively. Our fixed-rate senior notes are traded among institutions, which trades are routinely published by a reporting service. Our determination of fair value is based on reported trading activity near quarter end. We estimate that the carrying value of outstanding borrowings under our credit facilities and agreements approximates fair value as interest rates reflect current market rates.

Long-term debt maturities

Calendar Year		Payment
2012 (1)		$	—
2013		250
2014		—
2015		550
2016		429
Thereafter		3,300
Total (2)		$	4,529

(1) Our $500 million 4.25% senior notes will mature in September 2012 and thus are classified as short-term at December 31, 2011.

(2) Excludes aggregate unamortized net discount of $13 million and other long-term obligations of $4 million.