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Debt and Borrowing Arrangements | 9 Months Ended
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Sep. 30, 2017
Debt and Borrowing Arrangements | Note 7. Debt and Borrowing Arrangements Short-Term Borrowings: Our short-term borrowings and related weighted-average interest rates consisted of:
|  | As of September 30, 2017 |  |  | As of December 31, 2016 |
|  | Amount |  |  | Weighted- |  |  | Amount |  |  | Weighted- |
|  | Outstanding |  |  | Average Rate |  |  | Outstanding |  |  | Average Rate |
|  | (in millions) |  |  |  |  |  | (in millions) |  |  |  |
Commercial paper |  | $ | 4,370 |  |  |  | 1.3% |  |  | $ | 2,371 |  |  |  | 1.0% |
Bank loans |  |  | 181 |  |  |  | 10.6% |  |  |  | 160 |  |  |  | 10.6% |
Total short-term borrowings |  | $ | 4,551 |  |  |  |  |  |  | $ | 2,531 |  |  |  |  |
As of September 30, 2017, commercial paper issued and outstanding had between 2 and 66 days remaining to maturity. Commercial paper borrowings increased since year-end primarily as a result of issuances to finance the payment of long-term debt maturities, dividend payments and share repurchases during the year. Some of our international subsidiaries maintain primarily uncommitted credit lines to meet short-term working capital needs. Collectively, these credit lines amounted to $1.9 billion at September 30, 2017 and $1.8 billion at December 31, 2016. Borrowings on these lines were $181 million at September 30, 2017 and $160 million at December 31, 2016. Borrowing Arrangements: On March 1, 2017, to supplement our commercial paper program, we entered into a $1.5 billion revolving credit agreement for a 364-day senior unsecured credit facility that is scheduled to expire on February 28, 2018. The agreement includes the same terms and conditions as our existing $4.5 billion multi-year credit facility discussed below. As of September 30, 2017, no amounts were drawn on the facility. We also maintain a $4.5 billion multi-year senior unsecured revolving credit facility for general corporate purposes, including working capital needs, and to support our commercial paper program. On October 14, 2016, the revolving credit agreement, which was scheduled to expire on October 11, 2018, was extended through October 11, 2021. The revolving credit agreement includes a covenant that we maintain a minimum shareholders’ equity of at least $24.6 billion, excluding accumulated other comprehensive earnings/(losses) and the cumulative effects of any changes in accounting principles. At September 30, 2017, we complied with this covenant as our shareholders’ equity, as defined by the covenant, was $35.9 billion. The revolving credit facility agreement also contains customary representations, covenants and events of default. There are no credit rating triggers, provisions or other financial covenants that could require us to post collateral as security. As of September 30, 2017, no amounts were drawn on the facility. Long-Term Debt: On April 12, 2017, we discharged $488 million of our 6.500% U.S. dollar-denominated debt. We paid $504 million, representing principal as well as past and future interest accruals from February 2017 through the August 2017 maturity date. We recorded an $11 million loss on debt extinguishment within interest expense and a $5 million reduction in accrued interest. On March 30, 2017, fr.175 million of our 0.000% Swiss franc-denominated notes matured. The notes and accrued interest to date were paid with net proceeds from the fr.350 million Swiss franc-denominated notes issued on March 13, 2017. On March 13, 2017, we launched an offering of fr.350 million of Swiss franc-denominated notes, or $349 million in U.S. dollars as of March 31, 2017, consisting of:
| • |  | fr.225 million (or $224 million) of 0.050% fixed rate notes that mature on March 30, 2020
| • |  | fr.125 million (or $125 million) of 0.617% fixed rate notes that mature on September 30, 2024
On March 30, 2017, we received net proceeds of fr.349 million (or $349 million) that were used for general corporate purposes. On January 26, 2017, €750 million of our 1.125% euro-denominated notes matured. The notes and accrued interest to date were paid with the issuance of commercial paper and cash on hand. Our weighted-average interest rate on our total debt was 2.0% as of September 30, 2017 and 2.2% as of December 31, 2016, down from 3.7% as of December 31, 2015. Fair Value of Our Debt: The fair value of our short-term borrowings at September 30, 2017 and December 31, 2016 reflects current market interest rates and approximates the amounts we have recorded on our condensed consolidated balance sheets. The fair value of our long-term debt was determined using quoted prices in active markets (Level 1 valuation data) for the publicly traded debt obligations. At September 30, 2017, the aggregate fair value of our total debt was $19,367 million and its carrying value was $18,633 million. At December 31, 2016, the aggregate fair value of our total debt was $17,882 million and its carrying value was $17,199 million. Interest and Other Expense, net: Interest and other expense, net within our results of continuing operations consisted of:
|  | For the Three Months Ended |  |  | For the Nine Months Ended |
|  | September 30, |  |  | September 30, |
|  | 2017 |  |  | 2016 |  |  | 2017 |  |  | 2016 |
|  | (in millions) |
Interest expense, debt |  | $ | 89 |  |  | $ | 129 |  |  | $ | 295 |  |  | $ | 400 |
Loss on debt extinguishment |  |  | – |  |  |  | – |  |  |  | 11 |  |  |  | – |
Loss related to interest rate swaps |  |  | – |  |  |  | – |  |  |  | – |  |  |  | 97 |
Other (income)/expense, net |  |  | (70 | ) |  |  | 16 |  |  |  | (44 | ) |  |  | 43 |
Interest and other expense, net |  | $ | 19 |  |  | $ | 145 |  |  | $ | 262 |  |  | $ | 540 |
See Note 8, Financial Instruments, for information on the loss related to U.S. dollar interest rate swaps no longer designated as accounting cash flow hedges during the first quarter of 2016. See Note 11, Commitments and Contingencies, for information on the $59 million of other income recorded in connection with the resolution of a Brazilian indirect tax matter and the reversal of related accrued interest.

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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://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -URI http://asc.fasb.org/topic&trid=2208564 + Details
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