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Borrowings and Lines of Credit | 9 Months Ended
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Sep. 30, 2018
Debt Disclosure [Abstract] |
Borrowings and Lines of Credit [Text Block] | Borrowings and Lines of Credit
(dollars in millions) | September 30, 2018 |  | December 31, 2017
Commercial paper | $ | 1,380 |  |  | $ | 300 |
Other borrowings | 196 |  |  | 92 |
Total short-term borrowings | $ | 1,576 |  |  | $ | 392 |
At September 30, 2018, we had revolving credit agreements with various banks permitting aggregate borrowings of up to $4.35 billion, pursuant to a $2.20 billion revolving credit agreement and a $2.15 billion multicurrency revolving credit agreement, both of which expire in August 2021. As of September 30, 2018, there were no borrowings under either of these agreements. The undrawn portions of these revolving credit agreements are also available to serve as backup facilities for the issuance of commercial paper. As of September 30, 2018, our maximum commercial paper borrowing limit was $4.35 billion. Commercial paper borrowings at September 30, 2018 include approximately €750 million ($881 million) of euro-denominated commercial paper. We use our commercial paper borrowings for general corporate purposes, including the funding of potential acquisitions, pension contributions, debt refinancing, dividend payments and repurchases of our common stock. The need for commercial paper borrowings arises when the use of domestic cash for general corporate purposes exceeds the sum of domestic cash generation and foreign cash repatriated to the U.S. On August 16, 2018, we issued $1.0 billion aggregate principal amount of 3.350% notes due 2021, $2.25 billion aggregate principal amount of 3.650% notes due 2023, $1.5 billion aggregate principal amount of 3.950% notes due 2025, $3.0 billion aggregate principal amount of 4.125% notes due 2028, $750 million aggregate principal amount of 4.450% notes due 2038, $1.75 billion aggregate principal amount of 4.625% notes due 2048, and $750 million aggregate principal amount of floating rate notes due 2021. The net proceeds received from the issuance of the notes due 2021, notes due 2023, notes due 2025, notes due 2028, notes due 2038 and the floating rate notes due 2021 are specifically designated to finance payment obligations with respect to the cash consideration and related fees, expenses and other amounts in connection with the acquisition of Rockwell Collins. If either the acquisition of Rockwell Collins does not occur on or before July 15, 2019 or we notify the trustee that we will not pursue the acquisition of Rockwell Collins, we will be required to redeem the mandatorily redeemable notes then outstanding at a redemption price equal to 101% of the principal amount of such notes plus accrued and unpaid interest (the special mandatory redemption). We expect to use the proceeds of the notes due 2048 for general corporate purposes which may include the repayment of debt, including outstanding commercial paper. The notes due 2048 are not subject to the special mandatory redemption. On May 18, 2018, we issued €750 million aggregate principal amount of 1.150% notes due 2024, €500 million aggregate principal amount of 2.150% notes maturing 2030 and €750 million aggregate principal amount of floating rate notes maturing 2020. The net proceeds received from these debt issuances were used for general corporate purposes. On May 4, 2018, we repaid at maturity approximately $1.1 billion aggregate principal amount of 1.778% junior subordinated notes. On February 1, 2018, we repaid at maturity the $99 million 6.80% notes and on February 22, 2018, we repaid at maturity the €750 million EURIBOR plus 0.80% floating rate notes. In connection with the merger agreement with Rockwell Collins announced on September 4, 2017, we entered into a $6.5 billion 364-day unsecured bridge loan credit agreement that would have been funded only to the extent certain anticipated debt issuances were not completed prior to the completion of the merger. This unsecured bridge loan credit agreement was terminated on August 16, 2018 upon issuance of the $11 billion of aggregate principal notes described above. See Note 1 for additional discussion. Long-term debt consisted of the following:
(dollars in millions) | September 30, 2018 |  | December 31, 2017
6.800% notes due 2018 | $ | — |  |  | $ | 99 |
EURIBOR plus 0.800% floating rate notes due 2018 (€750 million principal value) 2 | — |  |  | 890 |
1.778% junior subordinated notes due 2018 | — |  |  | 1,100 |
LIBOR plus 0.350% floating rate notes due 2019 3 | 350 |  |  | 350 |
1.500% notes due 2019 1 | 650 |  |  | 650 |
EURIBOR plus 0.15% floating rate notes due 2019 (€750 million principal value) 2 | 881 |  |  | 890 |
8.875% notes due 2019 | 271 |  |  | 271 |
4.875% notes due 2020 1 | 171 |  |  | 171 |
4.500% notes due 2020 1 | 1,250 |  |  | 1,250 |
1.900% notes due 2020 1 | 1,000 |  |  | 1,000 |
EURIBOR plus 0.20% floating rate notes due 2020 (€750 million principal value) 2 | 881 |  |  | — |
8.750% notes due 2021 | 250 |  |  | 250 |
3.350% notes due 2021 1 | 1,000 |  |  | — |
LIBOR plus 0.650% floating rate notes due 2021 1,3 | 750 |  |  | — |
1.950% notes due 2021 1 | 750 |  |  | 750 |
1.125% notes due 2021 (€950 million principal value) 1 | 1,117 |  |  | 1,127 |
2.300% notes due 2022 1 | 500 |  |  | 500 |
3.100% notes due 2022 1 | 2,300 |  |  | 2,300 |
1.250% notes due 2023 (€750 million principal value) 1 | 881 |  |  | 890 |
3.650% notes due 2023 1 | 2,250 |  |  | — |
2.800% notes due 2024 1 | 800 |  |  | 800 |
1.150% notes due 2024 (€750 million principal value) 1 | 881 |  |  | — |
3.950% notes due 2025 1 | 1,500 |  |  | — |
1.875% notes due 2026 (€500 million principal value) 1 | 588 |  |  | 593 |
2.650% notes due 2026 1 | 1,150 |  |  | 1,150 |
3.125% notes due 2027 1 | 1,100 |  |  | 1,100 |
7.100% notes due 2027 | 141 |  |  | 141 |
6.700% notes due 2028 | 400 |  |  | 400 |
4.125% notes due 2028 1 | 3,000 |  |  | — |
7.500% notes due 2029 1 | 550 |  |  | 550 |
2.150% notes due 2030 (€500 million principal value) 1 | 588 |  |  | — |
5.400% notes due 2035 1 | 600 |  |  | 600 |
6.050% notes due 2036 1 | 600 |  |  | 600 |
6.800% notes due 2036 1 | 134 |  |  | 134 |
7.000% notes due 2038 | 159 |  |  | 159 |
6.125% notes due 2038 1 | 1,000 |  |  | 1,000 |
4.450% notes due 2038 1 | 750 |  |  | — |
5.700% notes due 2040 1 | 1,000 |  |  | 1,000 |
4.500% notes due 2042 1 | 3,500 |  |  | 3,500 |
4.150% notes due 2045 1 | 850 |  |  | 850 |
3.750% notes due 2046 1 | 1,100 |  |  | 1,100 |
4.050% notes due 2047 1 | 600 |  |  | 600 |
4.625% notes due 2048 1 | 1,750 |  |  | — |
Project financing obligations | 250 |  |  | 158 |
Other (including capitalized leases) | 230 |  |  | 195 |
Total principal long-term debt | 38,473 |  |  | 27,118 |
Other (fair market value adjustments and discounts) | (106 | ) |  | (25 | )
Total long-term debt | 38,367 |  |  | 27,093 |
Less: current portion | 92 |  |  | 2,104 |
Long-term debt, net of current portion | $ | 38,275 |  |  | $ | 24,989 |
1 | We may redeem these notes at our option pursuant to their terms.
2 | The three-month EURIBOR rate as of September 30, 2018 was approximately -0.318%. The notes may be redeemed at our option in whole, but not in part, at any time in the event of certain developments affecting U.S. taxation.
3 | The three-month LIBOR rate as of September 30, 2018 was approximately 2.398%.
The average maturity of our long-term debt at September 30, 2018 is approximately 11 years. The average interest expense rate on our total borrowings for the quarter and nine months ended September 30, 2018 and 2017 were as follows:
| Quarter Ended September 30, |  | Nine Months Ended September 30,
| 2018 |  | 2017 |  | 2018 |  | 2017
Average interest expense rate | 3.6 | % |  | 3.6 | % |  | 3.5 | % |  | 3.6 | %
We have an existing universal shelf registration statement filed with the Securities and Exchange Commission (SEC) for an indeterminate amount of equity and debt securities for future issuances, subject to our internal limitations on the amount of equity and debt to be issued under this shelf registration statement.

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- 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. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -URI http://asc.fasb.org/topic&trid=2208564 + Details
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