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DEBT AND FINANCING ARRANGEMENTS | 9 Months Ended
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Sep. 30, 2018
Debt Disclosure [Abstract] |
DEBT AND FINANCING ARRANGEMENTS | DEBT AND FINANCING ARRANGEMENTS The carrying value of our outstanding debt as of September 30, 2018 and December 31, 2017 consists of the following (in millions):
| Principal Amount |  |  |  | Carrying Value
|  | Maturity |  | 2018 |  | 2017
Commercial paper | $ | 2,815 |  |  | 2018 - 2019 |  | $ | 2,815 |  |  | $ | 3,203 |
Fixed-rate senior notes: |  |  |  |  |  |  |
5.500% senior notes | 750 |  |  | 2018 |  | — |  |  | 751 |
5.125% senior notes | 1,000 |  |  | 2019 |  | 1,004 |  |  | 1,019 |
3.125% senior notes | 1,500 |  |  | 2021 |  | 1,509 |  |  | 1,549 |
2.050% senior notes | 700 |  |  | 2021 |  | 697 |  |  | 696 |
2.450% senior notes | 1,000 |  |  | 2022 |  | 952 |  |  | 979 |
2.350% senior notes | 600 |  |  | 2022 |  | 597 |  |  | 597 |
2.500% senior note | 1,000 |  |  | 2023 |  | 994 |  |  | 992 |
2.800% senior note | 500 |  |  | 2024 |  | 496 |  |  | 495 |
2.400% senior note | 500 |  |  | 2026 |  | 497 |  |  | 497 |
3.050% senior note | 1,000 |  |  | 2027 |  | 991 |  |  | 990 |
6.200% senior notes | 1,500 |  |  | 2038 |  | 1,482 |  |  | 1,482 |
4.875% senior notes | 500 |  |  | 2040 |  | 490 |  |  | 489 |
3.625% senior notes | 375 |  |  | 2042 |  | 368 |  |  | 368 |
3.400% senior notes | 500 |  |  | 2046 |  | 491 |  |  | 491 |
3.750 % senior notes | 1,150 |  |  | 2047 |  | 1,136 |  |  | 1,135 |
Floating-rate senior notes: |  |  |  |  |  |  |  |  |  |
Floating-rate senior notes | 350 |  |  | 2021 |  | 348 |  |  | 348 |
Floating-rate senior notes | 400 |  |  | 2022 |  | 399 |  |  | 398 |
Floating-rate senior notes | 500 |  |  | 2023 |  | 499 |  |  | 496 |
Floating-rate senior notes | 1,043 |  |  | 2049-2067 |  | 1,030 |  |  | 1,032 |
8.375% Debentures: |  |  |  |  |  |  |
8.375% debentures | 424 |  |  | 2020 |  | 434 |  |  | 447 |
8.375% debentures | 276 |  |  | 2030 |  | 281 |  |  | 282 |
Pound Sterling notes: |  |  |  |  |  |  |
5.500% notes | 87 |  |  | 2031 |  | 86 |  |  | 84 |
5.125% notes | 593 |  |  | 2050 |  | 561 |  |  | 586 |
Euro senior notes: |  |  |  |  |  |  |
0.375% notes | 811 |  |  | 2023 |  | 805 |  |  | 832 |
1.625% notes | 811 |  |  | 2025 |  | 806 |  |  | 833 |
1.000% notes | 579 |  |  | 2028 |  | 575 |  |  | 595 |
1.500% notes | 579 |  |  | 2032 |  | 575 |  |  | 594 |
Floating-rate senior notes | 579 |  |  | 2020 |  | 578 |  |  | 598 |
Canadian senior notes: |  |  |  |  |  |  |
2.125% notes | 575 |  |  | 2024 |  | 572 |  |  | 593 |
Capital lease obligations | 900 |  |  | 2018-3005 |  | 900 |  |  | 500 |
Facility notes and bonds | 320 |  |  | 2029-2045 |  | 320 |  |  | 319 |
Other debt | 13 |  |  | 2018-2022 |  | 13 |  |  | 19 |
Total debt | $ | 24,230 |  |  |  |  | 23,301 |  |  | 24,289 |
Less: Current maturities |  |  |  |  | (3,200 | ) |  | (4,011 | )
Long-term debt |  |  |  |  | $ | 20,101 |  |  | $ | 20,278 |
Commercial Paper We are authorized to borrow up to $10.0 billion under a U.S. commercial paper program and €5.0 billion (in a variety of currencies) under a European commercial paper program. We had the following amounts outstanding under these programs as of September 30, 2018: $2.267 billion with an average interest rate of 2.01% and €473 million ($548 million) with an average interest rate of -0.37%. As of September 30, 2018, we have classified the entire commercial paper balance as a current liability on our consolidated balance sheets. Debt Classification We have classified our 5.125% senior notes due April 2019 with a principal balance of $1.0 billion as long-term debt based on our intent and ability to refinance the debt as of September 30, 2018. We have classified certain floating-rate senior notes that are putable by the note holders as long-term debt, due to our intent and ability to refinance the debt if the put option is exercised by the note holders. Debt Repayments On January 15, 2018, our $750 million 5.500% senior notes matured and were repaid in full. Sources of Credit We maintain two credit agreements with a consortium of banks. One of these agreements provides revolving credit facilities of $4.5 billion, and expires on March 22, 2019. Generally, amounts outstanding under this facility bear interest at a periodic fixed rate equal to LIBOR for the applicable interest period and currency denomination, plus an applicable margin. Alternatively, a fluctuating rate of interest equal to the highest of (1) JPMorgan Chase Bank’s publicly announced prime rate; (2) the Federal Funds effective rate plus 0.50%; and (3) LIBOR for a one month interest period plus 1.00%, plus an applicable margin, may be used at our discretion. In each case, the applicable margin for advances bearing interest based on LIBOR is a percentage determined by quotations from Markit Group Ltd. for our 1-year credit default swap spread, subject to a minimum rate of 0.10% and a maximum rate of 0.75%. The applicable margin for advances bearing interest based on the prime rate is 1.00% below the applicable margin for LIBOR advances (but not lower than 0.00%). We are also able to request advances under this facility based on competitive bids for the applicable interest rate. There were no amounts outstanding under this facility as of September 30, 2018. The second agreement provides revolving credit facilities of $3.0 billion, and expires on March 24, 2022. Generally, amounts outstanding under this facility bear interest at a periodic fixed rate equal to LIBOR for the applicable interest period and currency denomination, plus an applicable margin. Alternatively, a fluctuating rate of interest equal to the highest of (1) JPMorgan Chase Bank’s publicly announced prime rate; (2) the Federal Funds effective rate plus 0.50%; and (3) LIBOR for a one month interest period plus 1.00%, plus an applicable margin, may be used at our discretion. In each case, the applicable margin for advances bearing interest based on LIBOR is a percentage determined by quotations from Markit Group Ltd. for our 1-year credit default swap spread, interpolated for a period from the date of determination of such credit default swap spread in connection with a new interest period until the latest maturity date of this facility then in effect (but not less than a period of one year). The minimum applicable margin rate is 0.10% and the maximum applicable margin rate is 0.75% per annum. The applicable margin for advances bearing interest based on the prime rate is 1.00% below the applicable margin for LIBOR advances (but not less than 0.00%). We are also able to request advances under this facility based on competitive bids. There were no amounts outstanding under this facility as of September 30, 2018. Debt Covenants Our existing debt instruments and credit facilities subject us to certain financial covenants. As of September 30, 2018 and for all prior periods presented, we were in compliance with all applicable financial covenants. These covenants limit the amount of secured indebtedness that we may incur, and limit the amount of attributable debt in sale-leaseback transactions, to 10% of net tangible assets. As of September 30, 2018, 10% of net tangible assets was equivalent to $2.857 billion; however, we have no covered sale-leaseback transactions or secured indebtedness outstanding. We do not expect these covenants to have a material impact on our financial condition or liquidity. Fair Value of Debt Based on the borrowing rates currently available to the Company for debt with similar terms and maturities, the fair value of long-term debt, including current maturities, was approximately $23.857 and $25.206 billion as of September 30, 2018 and December 31, 2017, respectively. We utilized Level 2 inputs in the fair value hierarchy of valuation techniques to determine the fair value of all of our debt instruments.

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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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