DEBT

9 Months Ended

Sep. 30, 2019


	Weighted-Average Interest Rate
	September 30, 2019	December 31, 2018	Maturities	September 30, 2019			December 31, 2018
				(In thousands)
Short-term debt and current portion of long-term debt:
Short-term debt	1.57%	2.69%		$	217,738		81,522

Current portion of long-term debt, including finance leases						722,953		855,609
Total short-term debt and current portion of long-term debt						940,691		937,131
Long-term debt:
U.S. commercial paper ⁽¹⁾	2.30%	2.78%	2023	698,594			454,397
Canadian commercial paper ⁽¹⁾	2.00%	2.28%	2023	111,420			123,491
Trade receivables program	—%	3.15%	2020	—			200,000
Global revolving credit facility	3.07%	2.25%	2023	3,000			12,581
Unsecured U.S. notes — Medium-term notes⁽¹⁾⁽²⁾	3.21%	3.22%	2020-2025	5,564,895			4,853,496
Unsecured U.S. obligations	3.05%	3.50%	2024	200,000			50,000
Unsecured foreign obligations	2.80%	1.61%	2020-2024	83,984			216,719
Asset-backed U.S. obligations ⁽³⁾	2.49%	2.37%	2019-2026	842,899			627,707
Finance lease obligations	7.19%	7.97%	2019-2073	48,560			47,452
Total long-term debt				7,553,352			6,585,843
Debt issuance costs				(24,513)			(18,088)
				7,528,839			6,567,755
Current portion of long-term debt, including finance leases						(722,953)		(855,609)
Long-term debt				6,805,886			5,712,146
Total debt				$	7,746,577		6,649,277

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(1)Amounts are net of unamortized original issue discounts of $7 million at September 30, 2019 and December 31, 2018, respectively.

(2)Amounts are inclusive of fair market value adjustments on notes subject to hedging of $1 million and $10 million at September 30, 2019 and December 31, 2018, respectively. The notional amount of the executed interest rate swaps designated as fair value hedges was $525 million and $725 million at September 30, 2019 and December 31, 2018, respectively. Refer to Note 8, "Derivatives," for additional information.

(3)Asset-backed U.S. obligations are related to financing transactions backed by a portion of our revenue earning equipment.

We maintain a $1.4 billion global revolving credit facility with a syndicate of twelve lending institutions, which matures in September 2023. The agreement provides for annual facility fees that range from 7.5 basis points to 20 basis points based on Ryder's long-term credit ratings. The annual facility fee is currently 10 basis points, which applies to the total facility size of $1.4 billion. The credit facility is primarily used to finance working capital but can also be used to issue up to $75 million in letters of credit (there were no letters of credit outstanding against the facility at September 30, 2019). At September 30, 2019, $546 million was available under the credit facility.

In order to maintain availability of funding, we must maintain a ratio of debt to consolidated net worth of less than or equal to 300%. Net worth, as defined in the credit facility, represents shareholders' equity excluding any accumulated other comprehensive income or loss associated with our pension and other postretirement plans. The ratio at September 30, 2019 was 219%.

Our global revolving credit facility enables us to refinance short-term obligations on a long-term basis. Short-term commercial paper obligations not required for working capital needs are classified as long-term as we have both the intent and ability to refinance on a long-term basis. In addition, we have the intent and ability to refinance the current portion of certain long-term debt on a long-term basis. At September 30, 2019, we classified $810 million of short-term commercial paper, $400 million of the current portion of long-term debt and $19 million of short-term debt as long-term debt. At December 31, 2018, we classified $578 million of short-term commercial paper, $200 million of trade receivables borrowings, $250 million of the current portion of long-term debt and $50 million of short-term debt as long-term debt.

In August 2019, we issued $550 million of unsecured medium-term notes maturing in September 2024. In May 2019, we issued $550 million of unsecured medium-term notes maturing in June 2022. In February 2019, we issued $600 million of unsecured medium-term notes maturing in March 2024. The proceeds from these notes were used to pay off maturing debt and for general corporate purposes. If these notes are downgraded below investment grade following, and as a result of, a change in control, the note holders can require us to repurchase all or a portion of the notes at a purchase price equal to 101% of principal value plus accrued and unpaid interest.

In the second quarter of 2019, we executed a $50 million bank term loan maturing in April 2024 in one of our Canadian subsidiaries. In the first quarter of 2019, we executed two $100 million bank term loans maturing in February and March of 2024. The proceeds from these loans were used to pay off maturing debt and for general corporate purposes.

In May 2019, we received $298 million from financing transactions backed by a portion of our revenue earning equipment. The proceeds from these transactions were used for general corporate purposes. We have provided end of term guarantees for the residual value of the revenue earning equipment in these transactions. The transaction proceeds, along with the end of term residual value guarantees, have been included within "asset-backed U.S. obligations" in the preceding table.

We have a trade receivables purchase and sale program, pursuant to which we sell certain of our domestic trade accounts receivable to a bankruptcy remote, consolidated subsidiary of Ryder, that in turn sells, on a revolving basis, an ownership interest in certain of these accounts receivable to a committed purchaser. The available proceeds that may be received under the program are limited to $225 million. No amounts were outstanding under the program at September 30, 2019. At December 31, 2018, $200 million was outstanding under the program.

At September 30, 2019 and December 31, 2018, we had letters of credit and surety bonds outstanding totaling $461 million and $375 million, respectively, which primarily guarantee the payment of insurance claims.

The fair value of total debt (excluding capital lease and asset-backed U.S. obligations) at September 30, 2019 and December 31, 2018, was approximately $7.0 billion and $6.0 billion, respectively. For publicly-traded debt, estimates of fair value were based on market prices. For other debt, fair value was estimated based on a model-driven approach using rates currently available to us for debt with similar terms and remaining maturities. The fair value measurements of our publicly-traded debt and other debt were classified within Level 2 of the fair value hierarchy. The carrying amounts reported in the Consolidated Condensed Balance Sheets for “Cash and cash equivalents,” “Receivables, net” and “Accounts payable” approximate fair value because of the immediate or short-term maturities of these financial instruments.