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Debt | 12 Months Ended
--- | ---
Dec. 31, 2017
Debt Disclosure [Abstract] |
Debt |
16. | DEBT
Short-term borrowings The Company’s short-term borrowings consist of the following:
|  | 2017 |  |  | 2016 |
Bank indebtedness [i] |  | $ | 9 |  |  | $ | 8 |
Commercial paper [ii] |  |  | 250 |  |  |  | 615 |
|  | $ | 259 |  |  | $ | 623 |
[i] | The Company has an agreement for a credit facility that is drawn in euros. The Company is required to secure any amounts drawn on the facility with a USD cash deposit of 105% of the outstanding euro balance. As at December 31, 2017, the gross amount outstanding under the credit facility was $108 million [€90 million]. The credit agreement includes a netting arrangement with the bank that provides for the legal right of setoff. Accordingly, as at December 31, 2017, this liability balance was offset against the related restricted cash equivalent deposit of $113 million. The remaining net deposit of $5 million was included in the prepaid expenses and other balance, and is restricted under the terms of the loan. As at December 31, 2016, the gross amount outstanding under the credit facility was $185 million [€175 million], and the net deposit included in the prepaid expenses and other balance was $9 million.
[ii] | During 2016, the Company established a U.S. commercial paper program [the “U.S. Program”] and a euro-commercial paper program [the “euro-Program”]. Under the U.S. Program, the Company may issue U.S. commercial paper notes [the “U.S. notes”] up to a maximum aggregate amount of U.S. $500 million. The U.S. Program is supported by the Company’s existing global credit facility. The proceeds from the issuance of the U.S. notes are being used for general corporate purposes. As at December 31, 2017, $70 million [2016 - $295 million] of U.S. notes were outstanding, with a weighted-average interest rate of 1.84% [2016 – 1.04%], and maturities less than three months.
Under the euro-Program, the Company may issue euro-commercial paper notes [the “euro notes”] up to a maximum aggregate amount of €500 million or its equivalent in alternative currencies. The euro notes issued are guaranteed by the Company’s existing global credit facility. The proceeds from the issuance of the euro notes are being used for general corporate purposes. As of December 31, 2017, $180 million or €150 million [2016 – $320 million or €304 million] of euro notes were outstanding, with a negative weighted-average interest rate of 0.22% [2016 – 0.07%], and maturities less than three months. Long-term borrowings
[a] | The Company’s long-term debt, which is substantially uncollateralized, consists of the following:
|  | 2017 |  |  | 2016 |
Senior Notes [note 16 [d]] |  |  |  |  |  |  |  |
$750 million Senior Notes due 2024 at 3.625% |  | $ | 746 |  |  | $ | 746 |
$650 million Senior Notes due 2025 at 4.150% |  |  | 643 |  |  |  | 643 |
€550 million Senior Notes due 2023 at 1.900% |  |  | 657 |  |  |  | 576 |
€600 million Senior Notes due 2027 at 1.500% [c] |  |  | 717 |  |  |  | — |
Cdn$425 million Senior Notes due 2022 at 3.100% |  |  | 338 |  |  |  | 315 |
Bank term debt at a weighted average interest rate of approximately 5.68% [2016 – 7.3%], denominated primarily in Chinese renminbi, Indian rupee, euro and Brazilian real |  |  | 99 |  |  |  | 117 |
Government loans at a weighted average interest rate of approximately 1.73% [2016 – 2.53%], denominated primarily in euro, Canadian dollar and Brazilian real |  |  | 84 |  |  |  | 92 |
Other |  |  | 19 |  |  |  | 44 |
|  | 3,303 |  |  | 2,533 |
Less due within one year |  |  | 108 |  |  |  | 139 |
|  | $ | 3,195 |  |  | $ | 2,394 |
[b] | Future principal repayments on long-term debt are estimated to be as follows:
2018 |  | $ | 108 |
2019 |  |  | 32 |
2020 |  |  | 28 |
2021 |  |  | 25 |
2022 |  |  | 342 |
Thereafter |  |  | 2,768 |
|  | $3,303 |
[c] | On September 25, 2017, the Company issued €600 million of 1.500% fixed-rate Senior Notes which mature on September 25, 2027. Interest is payable on September 25th of each year.
[d] | All of the Senior Notes pay a fixed rate of interest semi-annually except for the €550 million and €600 million Senior Notes which pay a fixed rate of interest annually. The Senior Notes are unsecured obligations and do not include any financial covenants. The Company may redeem the Senior Notes in whole or in part at any time, at specified redemption prices determined in accordance with the terms of each of the respective indentures governing the Senior Notes. All of the Senior Notes were issued for general corporate purposes.
[e] | The Company’s $2.75 billion revolving credit facility matures on June 22, 2022. The facility includes a $200 million Asian tranche, a $100 million Mexican tranche and a tranche for Canada, U.S. and Europe, which is fully transferable between jurisdictions and can be drawn in U.S. dollars, Canadian dollars or euros.
[f] | Interest expense, net includes:
|  | 2017 |  |  | 2016 |
Interest expense |  |  |  |  |  |  |  |
Current |  | $ | 10 |  |  | $ | 22 |
Long-term |  |  | 80 |  |  |  | 78 |
|  | 90 |  |  | 100 |
Interest income |  |  | (20 | ) |  |  | (12 | )
Interest expense, net |  | $ | 70 |  |  | $ | 88 |
[g] | Interest paid in cash was $88 million for the year ended December 31, 2017 [2016 - $99 million].
[h] | At December 31, 2017, the Company had commitments under operating leases requiring annual rental payments as follows:
|  | Total |
2018 |  | $ | 316 |
2019 |  |  | 272 |
2020 |  |  | 239 |
2021 |  |  | 212 |
2022 |  |  | 189 |
Thereafter |  |  | 769 |
|  | $ | 1,997 |
For the year ended December 31, 2017, operating lease expense was $344 million [2016 - $314 million].

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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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