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Borrowings and Lines of Credit | 9 Months Ended
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Sep. 30, 2019
Debt Disclosure [Abstract] |
Borrowings and Lines of Credit [Text Block] | Borrowings and Lines of Credit
(dollars in millions) | September 30, 2019 |  | December 31, 2018
Commercial paper | $ | 984 |  |  | $ | 1,257 |
Other borrowings | 343 |  |  | 212 |
Total short-term borrowings | $ | 1,327 |  |  | $ | 1,469 |
At September 30, 2019, we had credit agreements with various banks permitting aggregate borrowings of up to $10.35 billion, including: a $2.20 billion revolving credit agreement and a $2.15 billion multicurrency revolving credit agreement, both of which expire in August 2021; and a $2.0 billion revolving credit agreement and a $4.0 billion term credit agreement, both of which we entered into on March 15, 2019 and which will expire on March 15, 2021 or, if earlier, the date that is 180 days after the date on which each of the separations of Otis and Carrier have been consummated. As of September 30, 2019, there were no borrowings under any 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, 2019, our maximum commercial paper borrowing limit was $6.35 billion. Commercial paper borrowings at September 30, 2019 include approximately €750 million ($824 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. Long-term debt consisted of the following:
(dollars in millions) | September 30, 2019 |  | December 31, 2018
LIBOR plus 0.350% floating rate notes due 2019 3 | $ | 350 |  |  | $ | 350 |
1.500% notes due 2019 1 | 650 |  |  | 650 |
1.950% notes due 2019 4 | — |  |  | 300 |
EURIBOR plus 0.15% floating rate notes due 2019 (€750 million principal value) 2 | 824 |  |  | 858 |
5.250% notes due 2019 4 | — |  |  | 300 |
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 | 824 |  |  | 858 |
8.750% notes due 2021 | 250 |  |  | 250 |
3.100% notes due 2021 4 | 250 |  |  | 250 |
3.350% notes due 2021 1 | 1,000 |  |  | 1,000 |
LIBOR plus 0.650% floating rate notes due 2021 1,3 | 750 |  |  | 750 |
1.950% notes due 2021 1 | 750 |  |  | 750 |
1.125% notes due 2021 (€950 million principal value) 1 | 1,044 |  |  | 1,088 |
2.300% notes due 2022 1 | 500 |  |  | 500 |
2.800% notes due 2022 4 | 1,100 |  |  | 1,100 |
3.100% notes due 2022 1 | 2,300 |  |  | 2,300 |
1.250% notes due 2023 (€750 million principal value) 1 | 824 |  |  | 858 |
3.650% notes due 2023 1 | 2,250 |  |  | 2,250 |
3.700% notes due 2023 4 | 400 |  |  | 400 |
2.800% notes due 2024 1 | 800 |  |  | 800 |
3.200% notes due 2024 4 | 950 |  |  | 950 |
1.150% notes due 2024 (€750 million principal value) 1 | 824 |  |  | 858 |
3.950% notes due 2025 1 | 1,500 |  |  | 1,500 |
1.875% notes due 2026 (€500 million principal value) 1 | 549 |  |  | 573 |
2.650% notes due 2026 1 | 1,150 |  |  | 1,150 |
3.125% notes due 2027 1 | 1,100 |  |  | 1,100 |
3.500% notes due 2027 4 | 1,300 |  |  | 1,300 |
7.100% notes due 2027 | 141 |  |  | 141 |
6.700% notes due 2028 | 400 |  |  | 400 |
4.125% notes due 2028 1 | 3,000 |  |  | 3,000 |
7.500% notes due 2029 1 | 550 |  |  | 550 |
2.150% notes due 2030 (€500 million principal value) 1 | 549 |  |  | 573 |
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 |  |  | 750 |
5.700% notes due 2040 1 | 1,000 |  |  | 1,000 |
4.500% notes due 2042 1 | 3,500 |  |  | 3,500 |
4.800% notes due 2043 4 | 400 |  |  | 400 |
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 |
4.350% notes due 2047 4 | 1,000 |  |  | 1,000 |
4.625% notes due 2048 1 | 1,750 |  |  | 1,750 |
Project financing obligations 5 | 307 |  |  | 287 |
Other (including finance leases) | 279 |  |  | 287 |
Total principal long-term debt | 43,600 |  |  | 44,416 |
Other (fair market value adjustments, discounts and debt issuance costs) | (323 | ) |  | (348 | )
Total long-term debt | 43,277 |  |  | 44,068 |
Less: current portion | 5,495 |  |  | 2,876 |
Long-term debt, net of current portion | $ | 37,782 |  |  | $ | 41,192 |
1 | We may redeem these notes at our option pursuant to their terms.
2 | The three-month EURIBOR rate as of September 30, 2019 was approximately -0.418%. 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, 2019 was approximately 2.0851%.
4 | Rockwell Collins debt which remained outstanding following the Rockwell Acquisition.
5 | Project financing obligations are associated with the sale of rights to unbilled revenues related to the ongoing activity of an entity owned by Carrier.
We had no debt issuances during the nine months ended September 30, 2019 and had the following issuances of debt in 2018:
(dollars and Euro in millions) |  |  |
Issuance Date | Description of Notes | Aggregate Principal Balance
August 16, 2018: | 3.350% notes due 2021 1 | $ | 1,000 |
| 3.650% notes due 2023 1 | 2,250 |
| 3.950% notes due 2025 1 | 1,500 |
| 4.125% notes due 2028 1 | 3,000 |
| 4.450% notes due 2038 1 | 750 |
| 4.625% notes due 2048 2 | 1,750 |
| LIBOR plus 0.65% floating rate notes due 2021 1 | 750 |
May 18, 2018: | 1.150% notes due 2024 3 | € | 750 |
| 2.150% notes due 2030 3 | 500 |
| EURIBOR plus 0.20% floating rate notes due 2020 3 | 750 |
1 | The net proceeds received from these debt issuances were used to partially finance the cash consideration portion of the purchase price for Rockwell Collins and fees, expenses and other amounts related to the acquisition of Rockwell Collins.
2 | The net proceeds from these debt issuances were used to fund the repayment of commercial paper and for other general corporate purposes.
3 | The net proceeds received from these debt issuances were used for general corporate purposes.
We had the following repayments of debt during the nine months ended September 30, 2019 and the year-ended December 31, 2018:
(dollars and Euro in millions) |  |
Repayment Date | Description of Notes | Aggregate Principal Balance
July 15, 2019 | 1.950% notes 1 | $ | 300 |
July 15, 2019 | 5.250% notes 1 | $ | 300 |
December 14, 2018 | Variable-rate term loan due 2020 (1 month LIBOR plus 1.25%)1 | $ | 482 |
May 4, 2018 | 1.778% junior subordinated notes | $ | 1,100 |
February 22, 2018 | EURIBOR plus 0.80% floating rate notes | € | 750 |
February 1, 2018 | 6.80% notes | $ | 99 |
1 | The notes and term loan were acquired in connection with the Rockwell Collins acquisition and have been subsequently repaid.
The average maturity of our long-term debt at September 30, 2019 is approximately 10 years. The average interest expense rate on our total borrowings for the quarters and nine months ended September 30, 2019 and 2018 were as follows:
| Quarter Ended September 30, |  | Nine Months Ended September 30,
| 2019 |  | 2018 |  | 2019 |  | 2018
Average interest expense rate | 3.7 | % |  | 3.6 | % |  | 3.7 | % |  | 3.5 | %
On September 27, 2019 we filed a universal shelf registration statement with the SEC for an indeterminate amount of debt and equity securities for future issuance, subject to our internal limitations on the amount of debt to be issued under the 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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