Name: EMC Corp. (NYSE:EMC) | Analysis of Debt
Creator: Stock Analysis on Net

Total Debt (Carrying Amount)
Total Debt (Fair Value)
Weighted-average Interest Rate on Debt

EMC Corp., balance sheet: debt

US$ in millions

	Dec 31, 2015	Dec 31, 2014	Dec 31, 2013	Dec 31, 2012	Dec 31, 2011
Notes converted and payable	—)	—)	1,665)	—)	1,700)
Short-term debt	1,299)	—)	—)	—)	—)
Current portion of convertible debt	—)	—)	—)	1,652)	1,605)
Long-term debt	5,475)	5,495)	5,494)	—)	—)
Total debt (carrying amount)	6,774)	5,495)	7,159)	1,652)	3,305)

Based on: 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31).

The carrying amount of total debt exhibits significant volatility between 2011 and 2015, characterized by a sharp increase in 2013 followed by fluctuating levels of short-term obligations. Total debt decreased from US$ 3,305 million in 2011 to a period low of US$ 1,652 million in 2012, before surging to a peak of US$ 7,159 million in 2013.

Debt Composition and Structural Shifts: A fundamental shift in the debt profile occurred in 2013. In 2011 and 2012, the debt structure was primarily composed of notes converted and payable and the current portion of convertible debt. Starting in 2013, long-term debt became the dominant component of the capital structure, maintaining a relatively stable balance of approximately US$ 5.5 billion through 2015.
Analysis of Short-term Liabilities: Short-term obligations demonstrated inconsistent patterns over the five-year period. The current portion of convertible debt was a primary driver of total debt in 2011 and 2012 but was absent from the reporting in the following three years. A new short-term debt obligation of US$ 1,299 million emerged in 2015, contributing to the rise in total debt to US$ 6,774 million in that final year.
Long-term Debt Stability: Following its appearance in 2013 at US$ 5,494 million, long-term debt remained remarkably constant, ending 2015 at US$ 5,475 million. This indicates that the fluctuations in total debt observed from 2013 to 2015 were driven by the presence or absence of shorter-term instruments and convertible notes rather than adjustments to long-term borrowing levels.

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	Dec 31, 2015
Selected Financial Data (US$ in millions)
Notes converted and payable	—)
Short-term debt	1,299)
Long-term debt	4,999)
Total debt (fair value)	6,298)
Financial Ratio
Debt, fair value to carrying amount ratio	0.93

Based on: 10-K (reporting date: 2015-12-31).

Weighted-average effective interest rate on debt: 2.34%

Interest rate	Debt amount¹	Interest rate × Debt amount
2.55%	5,495)	140)
0.73%	699)	5)
Total	6,194)	145)
2.34%

Based on: 10-K (reporting date: 2015-12-31).

¹ US$ in millions

² Weighted-average interest rate = 100 × 145 ÷ 6,194 = 2.34%

EMC Corp. (NYSE:EMC)

Analysis of Debt

Total Debt (Carrying Amount)

Total Debt (Fair Value)

Weighted-average Interest Rate on Debt