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DEBT AND FINANCING ARRANGEMENTS | 9 Months Ended
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Sep. 30, 2019
Debt Disclosure [Abstract] |
DEBT AND FINANCING ARRANGEMENTS | DEBT AND FINANCING ARRANGEMENTS The carrying value of our outstanding debt as of September 30, 2019 and December 31, 2018 consists of the following (in millions):
| Principal Amount |  |  |  | Carrying Value
|  | Maturity |  | 2019 |  | 2018
Commercial paper | $ | 2,054 |  |  | 2019-2020 |  | $ | 2,054 |  |  | $ | 2,662 |
Fixed-rate senior notes: |  |  |  |  |  |  |
5.125% senior notes | 1,000 |  |  | 2019 |  | — |  |  | 998 |
3.125% senior notes | 1,500 |  |  | 2021 |  | 1,528 |  |  | 1,492 |
2.050% senior notes | 700 |  |  | 2021 |  | 698 |  |  | 698 |
2.450% senior notes | 1,000 |  |  | 2022 |  | 1,007 |  |  | 1,023 |
2.350% senior notes | 600 |  |  | 2022 |  | 598 |  |  | 597 |
2.500% senior notes | 1,000 |  |  | 2023 |  | 995 |  |  | 994 |
2.800% senior notes | 500 |  |  | 2024 |  | 497 |  |  | 496 |
2.200% senior notes | 400 |  |  | 2024 |  | 398 |  |  | — |
2.400% senior notes | 500 |  |  | 2026 |  | 498 |  |  | 498 |
3.050% senior notes | 1,000 |  |  | 2027 |  | 992 |  |  | 991 |
3.400% senior notes | 750 |  |  | 2029 |  | 745 |  |  | — |
2.500% senior notes | 400 |  |  | 2029 |  | 396 |  |  | — |
6.200% senior notes | 1,500 |  |  | 2038 |  | 1,483 |  |  | 1,482 |
4.875% senior notes | 500 |  |  | 2040 |  | 490 |  |  | 490 |
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 |  |  | 1,136 |
4.250% senior notes | 750 |  |  | 2049 |  | 742 |  |  | — |
3.400% senior notes | 700 |  |  | 2049 |  | 687 |  |  | — |
Floating-rate senior notes: |  |  |  |  |  |  |  |  |  |
Floating-rate senior notes | 350 |  |  | 2021 |  | 349 |  |  | 349 |
Floating-rate senior notes | 400 |  |  | 2022 |  | 399 |  |  | 399 |
Floating-rate senior notes | 500 |  |  | 2023 |  | 499 |  |  | 499 |
Floating-rate senior notes | 1,041 |  |  | 2049-2067 |  | 1,028 |  |  | 1,029 |
8.375% Debentures: |  |  |  |  |  |  |
8.375% debentures | 424 |  |  | 2020 |  | 429 |  |  | 419 |
8.375% debentures | 276 |  |  | 2030 |  | 281 |  |  | 274 |
Pound Sterling notes: |  |  |  |  |  |  |
5.500% notes | 82 |  |  | 2031 |  | 81 |  |  | 84 |
5.125% notes | 559 |  |  | 2050 |  | 530 |  |  | 546 |
Euro senior notes: |  |  |  |  |  |  |
0.375% notes | 763 |  |  | 2023 |  | 759 |  |  | 797 |
1.625% notes | 763 |  |  | 2025 |  | 759 |  |  | 798 |
1.000% notes | 545 |  |  | 2028 |  | 542 |  |  | 570 |
1.500% notes | 545 |  |  | 2032 |  | 541 |  |  | 569 |
Floating-rate senior notes | 545 |  |  | 2020 |  | 544 |  |  | 572 |
Canadian senior notes: |  |  |  |  |  |  |
2.125% notes | 566 |  |  | 2024 |  | 564 |  |  | 548 |
Finance lease obligations | 466 |  |  | 2019-3005 |  | 466 |  |  | 534 |
Facility notes and bonds | 320 |  |  | 2029-2045 |  | 319 |  |  | 320 |
Other debt | 8 |  |  | 2019-2022 |  | 8 |  |  | 13 |
Total debt | $ | 25,032 |  |  |  |  | 23,901 |  |  | 22,736 |
Less: Current maturities |  |  |  |  | (2,161 | ) |  | (2,805 | )
Long-term debt |  |  |  |  | $ | 21,740 |  |  | $ | 19,931 |
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, 2019: $1.020 billion with an average interest rate of 2.24% and €949 million ($1.034 billion) with an average interest rate of -0.37%. As of September 30, 2019, we have classified the entire commercial paper balance as a current liability on our consolidated balance sheets. Debt Classification We have classified both our 8.375% debentures due April 2020 with a principal balance of $424 million, and our €500 million ($545 million) floating-rate senior notes due July 2020, as long-term debt based on our intent and ability to refinance the debt as of September 30, 2019. 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 Issuance On March 13, 2019 we issued two series of notes, both in the principal amounts of $750 million. These fixed-rate notes bear interest at the rates of 3.40% and 4.25% and will mature on March 15, 2029 and March 15, 2049, respectively. Interest on the fixed-rate senior notes is payable semi-annually, beginning September 2019. The 3.40% fixed-rate senior notes are callable at our option at a redemption price equal to the greater of 100% of the principal amount, or the sum of the present values of remaining scheduled payments of principal and interest due from the redemption date until three months prior to maturity, discounted to the redemption date on a semi-annual basis at the discount rate of the Treasury Rate plus 15 basis points, plus accrued and unpaid interest. The 4.25% fixed-rate senior notes are callable at our option at a redemption price equal to the greater of 100% of the principal amount, or the sum of the present values of remaining scheduled payments of principal and interest due from the redemption date until six months prior to maturity discounted to the redemption date on a semi-annual basis at the discount rate of the Treasury Rate plus 20 basis points, plus accrued and unpaid interest. On August 13, 2019 we issued three series of notes, two with principal amounts of $400 million and one in the principal amount of $700 million. These notes bear interest at the rates of 2.20%, 2.50% and 3.40%, respectively, and will mature on September 1, 2024, September 1, 2029 and September 1, 2049, respectively. Interest on the notes is payable semi-annually, beginning March 2020. The 2.20% senior notes are callable at our option at a redemption price equal to the greater of 100% of the principal amount, or the sum of the present values of scheduled payments of principal and interest due from the redemption date until one month prior to maturity, discounted to the redemption date on a semi-annual basis at the discount rate of the Treasury Rate plus 10 basis points, plus accrued and unpaid interest. The 2.50% senior notes are callable at our option at a redemption price equal to the greater of 100% of the principal amount, or the sum of the present values of scheduled payments of principal and interest due from the redemption date until three months prior to maturity discounted to the redemption date on a semi-annual basis at the discount rate of the Treasury Rate plus 15 basis points, plus accrued and unpaid interest. The 3.40% senior notes are callable at our option at a redemption price equal to the greater of 100% of the principal amount, or the sum of the present values of scheduled payments of principal and interest due from the redemption date until six months prior to maturity, discounted to the redemption date on a semi-annual basis at the discount rate of the Treasury Rate plus 20 basis points, plus accrued and unpaid interest. Sources of Credit We maintain two credit agreements with a consortium of banks. One of these agreements provides a revolving credit facility of $1.5 billion and expires on December 10, 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. The applicable margin is 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, 2019. The second agreement provides a revolving credit facility of $3.0 billion, and expires on December 11, 2023. 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. 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 for the applicable interest rate. There were no amounts outstanding under this facility as of September 30, 2019. Debt Covenants Our existing debt instruments and credit facilities subject us to certain financial covenants. As of September 30, 2019 and for all 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, 2019, 10% of net tangible assets was equivalent to $3.453 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 us for debt with similar terms and maturities, the fair value of long-term debt, including current maturities, was approximately $25.668 and $23.293 billion as of September 30, 2019 and December 31, 2018, 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://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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