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Borrowings and Lines of Credit | 12 Months Ended
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Dec. 31, 2019
Debt Disclosure [Abstract] |
Borrowings and Lines of Credit |
(dollars in millions) | 2019 |  | 2018
Short-term borrowings: |  |  |
Commercial paper | $ | — |  |  | $ | 1,257 |
Other borrowings | 2,293 |  |  | 171 |
Total short-term borrowings | $ | 2,293 |  |  | $ | 1,428 |
At December 31, 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 December 31, 2019, there were borrowings of $2.10 billion under the $4.0 billion term credit agreement. The undrawn portions of the revolving credit agreements are also available to serve as backup facilities for the issuance of commercial paper. As of December 31, 2019, our maximum commercial paper borrowing limit was $6.35 billion. We had no commercial paper borrowings as of December 31, 2019. 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. At December 31, 2019, approximately $2.3 billion was available under short-term lines of credit with local banks at our various domestic and international subsidiaries. The weighted-average interest expense rates applicable to short-term borrowings and total debt were as follows:
| 2019 |  | 2018
Average interest expense rate - average outstanding borrowings during the year: |  |  |
Short-term borrowings | 1.7 | % |  | 1.3 | %
Total debt | 3.6 | % |  | 3.5 | %
Average interest expense rate - outstanding borrowings as of December 31: |  |  |
Short-term borrowings | 2.3 | % |  | 1.9 | %
Total debt | 3.6 | % |  | 3.5 | %
Long-term debt consisted of the following as of December 31:
(dollars in millions) | 2019 |  | 2018
Libor plus 0.350% floating rate notes due 2019 (3) | $ | — |  |  | $ | 350 |
1.500% notes due 2019 (1) | — |  |  | 650 |
1.950% notes due 2019 (4) | — |  |  | 300 |
Euribor plus 0.15% floating rate notes due 2019 (€750 million principal value) (2) | — |  |  | 858 |
5.250% notes due 2019 (4) | — |  |  | 300 |
8.875% notes due 2019 | — |  |  | 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) | 831 |  |  | 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) | 1,053 |  |  | 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) | 831 |  |  | 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) | 831 |  |  | 858 |
3.950% notes due 2025 (1) | 1,500 |  |  | 1,500 |
1.875% notes due 2026 (€500 million principal value)(1) | 554 |  |  | 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) | 554 |  |  | 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 |
Other (including finance leases) | 315 |  |  | 269 |
Total principal long-term debt | 41,274 |  |  | 44,111 |
Other (fair market value adjustments, discounts and debt issuance costs) | (315) |  |  | (348) |
Total long-term debt | 40,959 |  |  | 43,763 |
Less: current portion | 3,258 |  |  | 2,722 |
Long-term debt, net of current portion | $ | 37,701 |  |  | $ | 41,041 |
(1) We may redeem these notes at our option pursuant to their terms. (2) The three-month EURIBOR rate as of December 31, 2019 was approximately (0.383)%. 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 December 31, 2019 was approximately 1.908%. (4) Rockwell Collins debt which remained outstanding following the Rockwell Acquisition. We had no debt issuances during 2019 and the following issuances of debt in 2018: (dollars 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 made the following repayments of debt in 2019 and 2018: (dollars in millions)
Repayment Date | Description of Notes | Aggregate Principal Balance
November 15, 2019 | 8.875% notes | $ | 271 |
November 13, 2019 | EURIBOR plus 0.15% floating rate notes | € | 750 |
November 1, 2019: | LIBOR plus 0.350% floating rate notes | $ | 350 |
| 1.500% notes | $ | 650 |
July 15, 2019: | 1.950% notes(1) | $ | 300 |
| 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) These notes and term loan were assumed in connection with the Rockwell Collins acquisition and subsequently repaid. The percentage of total short-term borrowings and long-term debt at variable interest rates was 9% and 10% at December 31, 2019 and 2018, respectively. Interest rates on our commercial paper borrowings are considered variable due to their short-term duration and high-frequency of turnover. The average maturity of our long-term debt at December 31, 2019 is approximately 10 years. The schedule of principal payments required on long-term debt for the next five years and thereafter is:
(dollars in millions) |
2020 | $ | 3,258 |
2021 | 4,091 |
2022 | 3,904 |
2023 | 3,490 |
2024 | 2,592 |
Thereafter | 23,939 |
Total | $ | 41,274 |
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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