Financing Arrangements

12 Months Ended

Dec. 31, 2013

The Company has a secured term loan credit facility (“secured debt”). Under the terms of the secured debt, the Company made interest-only payments through February 2013. Subsequent to the interest-only payments, the note amortizes with principal and interest payments through the remaining term of the loan. Additionally, the Company must also make an additional final payment equal to 6% of the total amount borrowed which is due at maturity and is being accreted over the life of the loan. To secure the Company's repayment obligations under the secured debt agreement, the lender obtained a first priority security interest in all of the Company's assets, excluding intellectual property.

The carrying values and the fixed contractual coupon rates of the Company's financing arrangements are as follows (dollars in millions):



	December 31, 2013		December 31, 2012
Current portion notes payable, 8.64%, due August 1, 2014	$	6,642	$	10,792
Current portion notes payable, 8.9012%, due August 1, 2014	2,467		4,043
Total current portion of notes payable	$	9,109	$	14,835
Long-term portion notes payable, 8.64%, due August 1, 2014	$	—	$	9,837
Long-term portion notes payable, 8.9012%, due August 1, 2014	—		3,606
Total long-term portion of notes payable	$	—	$	13,443

Principal payments on long-term debt obligations subsequent to December 31, 2013 are as follows:



Year ending December 31,	Amount
2014	$	9,365

The fair value of the Company’s debt instruments approximates their carrying values as the interest is tied to or approximates market rates.

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

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