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Debt Financing

12 Months Ended

Dec. 31, 2020

Debt Disclosure [Abstract]

Debt Financing

Debt Financing

LINE OF CREDIT AGREEMENTS

At December 31, 2020, the Company had two line of credit agreements available, with a combined commitment amount of $4.5 billion. Both line of credit agreements remain unused, with the $1.0 billion agreement expiring in March 2021, and the $3.5 billion agreement expiring in December 2024. The Company intends to renew both line of credit agreements prior to their expiration. The $1.0 billion line of credit includes a fixed fee of 0.375% on the total commitment, and the $3.5 billion line of credit incurs fees of 0.09% per annum on the total commitment. Fees and interest rates on the $3.5 billion line of credit are primarily based on the Company’s long-term credit rating assigned by Moody’s and Standard & Poor's. In addition, the Company's subsidiaries had unused lines of credit that were primarily uncommitted, short-term and denominated in various currencies at local market rates of interest.

The weighted-average interest rate of short-term borrowings was 1.9% at December 31, 2020 (based on $265.7 million of foreign currency bank line borrowings) and 1.9% at December 31, 2019 (based on $242.4 million of foreign currency bank line borrowings and $899.3 million of commercial paper outstanding).

DEBT OBLIGATIONS

The Company has incurred debt obligations principally through public and private offerings and bank loans. There are no provisions in the Company’s debt obligations that would accelerate repayment of debt as a result of a change in credit ratings or a material adverse change in the Company’s business. Certain of the Company’s debt obligations contain cross-acceleration provisions, and restrictions on Company and subsidiary mortgages and the long-term debt of certain subsidiaries. Under certain agreements, the Company has the option to retire debt prior to maturity, either at par or at a premium over par. The Company has no current plans to retire a significant amount of its debt prior to maturity, but continues to look for ways to optimize its debt portfolio.

The following table summarizes the Company’s debt obligations (interest rates and debt amounts reflected in the table include the effects of interest rate swaps used to hedge debt).

									Interest rates(1) December 31															Amounts outstanding December 31
In millions of U.S. Dollars			Maturity dates						2020						2019									2020						2019
Fixed									3.9		%				4.0		%							$	22,734.5					$	19,340.2
Floating									0.9						2.2									1,150.0						2,049.3
Total U.S. Dollar			2021-2050																					23,884.5						21,389.5
Fixed									1.5						1.5									9,453.9						8,671.8
Floating									2.1						2.3									366.5						337.0
Total Euro			2021-2031																					9,820.4						9,008.8
Fixed									3.4						3.4									845.1						771.0
Floating									1.2						2.0									230.8						210.6
Total Australian Dollar			2024-2029																					1,075.9						981.6
Total British Pounds Sterling - Fixed			2032-2054						4.2						4.6									1,156.4						1,386.3
Total Canadian Dollar - Fixed			2021-2025						3.1						3.1									784.9						768.6
Total Japanese Yen - Fixed			2030						2.9						2.9									121.1						115.1
Fixed									0.2						0.2									451.9						413.8
Floating									1.9						2.2									265.7						241.8
Total other currencies(2)			2021-2024																					717.6						655.6
Debt obligations before fair value adjustments and deferred debt costs(3)																								37,560.8						34,305.5
Fair value adjustments(4)																								35.8						12.1
Deferred debt costs																								(156.2)						(140.4)
Total debt obligations																								$	37,440.4					$	34,177.2

(1)Weighted-average effective rate, computed on a semi-annual basis.

(2)Consists of Swiss Francs and Korean Won.

(3)Aggregate maturities for 2020 debt balances, before fair value adjustments and deferred debt costs, are as follows (in millions): 2021–$2,243.6; 2022–$2,332.2; 2023–$2,643.9; 2024–$3,300.7; 2025–$3,159.6; Thereafter–$23,880.8. These amounts include a reclassification of short-term obligations totaling $268.9 million to long-term obligations as they are supported by a long-term line of credit agreement expiring in December 2024.

(4)The carrying value of underlying items in fair value hedges, in this case debt obligations, are adjusted for fair value changes to the extent they are attributable to the risk designated as being hedged. The related hedging instruments are also recorded at fair value on the Consolidated Balance Sheet.

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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

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