XML 32 R17.htm IDEA: XBRL DOCUMENT
v3.19.1

Debt and Borrowing Arrangements | 3 Months Ended
--- | ---
Mar. 31, 2019
Debt Disclosure [Abstract] |
Debt and Borrowing Arrangements | Note 9. Debt and Borrowing Arrangements Short-Term Borrowings: Our short-term borrowings and related weighted-average interest rates consisted of:
| As of March 31, 2019 |  | As of December 31, 2018
| Amount Outstanding |  | Weighted- Average Rate |  | Amount Outstanding |  | Weighted- Average Rate
| (in millions) |  |  |  | (in millions) |  |
Commercial paper | $ | 3,532 |  |  | 3.0 | % |  | $ | 3,054 |  |  | 2.9 | %
Bank loans | 533 |  |  | 6.5 | % |  | 138 |  |  | 10.5 | %
Total short-term borrowings | $ | 4,065 |  |  |  |  | $ | 3,192 |  |  |
As of March 31, 2019, commercial paper issued and outstanding had between 1 and 81 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 $1.7 billion at March 31, 2019 and $1.7 billion at December 31, 2018. Borrowings on these lines were $533 million at March 31, 2019 and $138 million at December 31, 2018. Borrowing Arrangements: On February 27, 2019, 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 26, 2020. The agreement replaces our previous credit agreement that matured on February 27, 2019 and includes the same terms and conditions as our existing $4.5 billion multi-year credit facility discussed below. As of March 31, 2019, no amounts were drawn on the facility. On February 27, 2019, we entered into 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. This agreement replaces our $4.5 billion amended and restated five-year revolving credit agreement, dated as of October 14, 2016. The revolving credit agreement is scheduled to expire on February 27, 2024. 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), the cumulative effects of any changes in accounting principles and earnings/(losses) recognized in connection with the ongoing application of any mark-to-market accounting for pensions and other retirement plans. At March 31, 2019, we complied with this covenant as our shareholders' equity, as defined by the covenant, was $36.3 billion. The revolving credit facility also contains customary representations, covenants and events to default. There are no credit rating triggers, provisions or other financial covenants that could require us to post collateral as security. As of March 31, 2019, no amounts were drawn on the facility. Long-Term Debt: On February 13, 2019, we issued $600 million of 3.625% U.S. dollar-denominated, fixed-rate notes that are scheduled to mature February 13, 2026. We received net proceeds of $595 million that were used to repay outstanding commercial paper borrowings and other debt. We recorded approximately $5 million of discounts and deferred financing costs, which will be amortized into interest expense over the life of the notes. On February 1, 2019, $400 million of our U.S. dollar variable rate 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 2.4% as of March 31, 2019, 2.3% as of December 31, 2018 and 2.1% as of December 31, 2017. Fair Value of Our Debt: The fair value of our short-term borrowings at March 31, 2019 and December 31, 2018 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 March 31, 2019, the aggregate fair value of our total debt was $19,944 million and its carrying value was $19,420 million. At December 31, 2018, the aggregate fair value of our total debt was $18,650 million and its carrying value was $18,372 million. Interest and Other Expense, net: Interest and other expense, net consisted of:
| For the Three Months Ended March 31,
| 2019 |  | 2018
| (in millions)
Interest expense, debt | $ | 123 |  |  | $ | 102 |
Loss/(gain) related to interest rate swaps | — |  |  | (14 | )
Other (income)/expense, net | (43 | ) |  | (8 | )
Interest and other expense, net | $ | 80 |  |  | $ | 80 |
Other income includes amounts related to our net investment hedge derivative contracts that are excluded from hedge effectiveness and totaled $33 million for the three months ended March 31, 2019 and $17 million for the three months ended March 31, 2018.

X
- References No definition available. + Details
Name: | us-gaap_DebtDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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
Name: | us-gaap_DebtDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration