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v3.23.1

DEBT | 3 Months Ended
--- | ---
Mar. 31, 2023
Debt Disclosure [Abstract] |
DEBT | DEBT
|  | Weighted Average Interest Rate |  |  |  |  |  |
(Dollars in millions) |  | March 31, 2023 |  | Maturities |  | March 31, 2023 |  | December 31, 2022
Debt: |  |  |  |  |  |  |  |
U.S. commercial paper |  | 5.02% |  | 2026 |  | $ | 457 |  |  | $ | 672 |
Canadian commercial paper |  | — |  | 2026 |  | — |  |  | — |
Trade receivables financing program |  | 5.60% |  | 2023 |  | 215 |  |  | 50 |
Global revolving credit facility |  | — |  | 2026 |  | — |  |  | — |
Unsecured U.S. obligations |  | 4.16% |  | 2027 |  | 375 |  |  | 375 |
Unsecured medium-term note issued February 2018 |  | — |  | 2023 |  | — |  |  | 450 |
Unsecured medium-term note issued June 2018 |  | 3.75% |  | 2023 |  | 450 |  |  | 450 |
Unsecured medium-term note issued October 2018 |  | 3.88% |  | 2023 |  | 300 |  |  | 300 |
Unsecured medium-term note issued February 2019 |  | 3.65% |  | 2024 |  | 600 |  |  | 600 |
Unsecured medium-term note issued August 2019 |  | 2.50% |  | 2024 |  | 550 |  |  | 550 |
Unsecured medium-term note issued April 2020 |  | 4.63% |  | 2025 |  | 400 |  |  | 400 |
Unsecured medium-term note issued May 2020 |  | 3.35% |  | 2025 |  | 400 |  |  | 400 |
Unsecured medium-term note issued December 1995 |  | 6.95% |  | 2025 |  | 150 |  |  | 150 |
Unsecured medium-term note issued November 2021 (1) |  | 5.50% |  | 2026 |  | 274 |  |  | 270 |
Unsecured medium-term note issued November 2019 |  | 2.90% |  | 2026 |  | 400 |  |  | 400 |
Unsecured medium-term note issued February 2022 (1) |  | 4.16% |  | 2027 |  | 436 |  |  | 434 |
Unsecured medium-term note issued May 2022 |  | 4.30% |  | 2027 |  | 300 |  |  | 300 |
Unsecured medium-term note issued February 2023 |  | 5.65% |  | 2028 |  | 500 |  |  | — |
Unsecured foreign obligations |  | 2.88% |  | 2024 |  | 50 |  |  | 50 |
Asset-backed U.S. obligations (2) |  | 3.06% |  | 2023-2029 |  | 460 |  |  | 477 |
Finance lease obligations and other |  |  |  | 2023-2041 |  | 43 |  |  | 42 |
|  |  |  |  |  | 6,361 |  |  | 6,370 |
Debt issuance costs and original issue discounts |  |  |  |  |  | (21) |  |  | (18) |
Total debt (3) |  |  |  |  |  | 6,340 |  |  | 6,352 |
Short-term debt and current portion of long-term debt |  |  |  |  |  | (1,674) |  |  | (1,349) |
Long-term debt |  |  |  |  |  | $ | 4,666 |  |  | $ | 5,003 |
———————————— (1)Includes impact from the fair market values of hedging instruments on our notes, which was $39 million as of March 31, 2023, and $47 million as of December 31, 2022, and was included in "Other non-current liabilities" within the unaudited Condensed Consolidated Balance Sheets. The notional amount of interest rate swaps designated as fair value hedges was $500 million and $450 million as of March 31, 2023 and December 31, 2022, respectively. (2)Asset-backed U.S. obligations are related to financing transactions backed by a portion of our revenue earning equipment. (3)The unsecured medium-term notes bear semi-annual interest. The fair value of total debt (excluding finance lease and asset-backed U.S. obligations) was approximately $5.9 billion and $5.7 billion as of March 31, 2023 and December 31, 2022, 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 our other debt were classified within Level 2 of the fair value hierarchy. As of March 31, 2023, there was $943 million available under the global revolving 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%, as defined in the credit facility agreement. As of March 31, 2023, the ratio was 156%. On April 25, 2023, certain terms of our global revolving credit facility were amended. Pursuant to the amendment, among other items, (i) the definition of consolidated net worth was revised to exclude impacts from our exit of the FMS U.K. business, (ii) LIBOR was replaced as an available benchmark interest rate with Term SOFR, and (iii) the maximum absolute dollar amounts for our trade receivables financing program and asset-backed financings were removed and only percentage-based maximum amounts remain. We had letters of credit and surety bonds outstanding of $515 million and $513 million as of March 31, 2023 and December 31, 2022, respectively, which primarily guarantee the payment of insurance claims. As of March 31, 2023, the available proceeds under the trade receivables financing program were $1 million. As of March 31, 2023, utilization of the credit facility included borrowing of $215 million and letters of credit outstanding of $84 million. On April 24, 2023, we extended the trade receivables financing program for an additional year to April 2024. The following table summarizes our debt proceeds and repayments in 2023:
Three months ended March 31, 2023
(In millions) |  | Debt Proceeds |  |  |  | Debt Repayments
Medium-term notes (1) |  | $ | 499 |  |  | Medium-term notes |  | $ | 450 |
U.S. and foreign term loans, finance lease obligations and other |  | 165 |  |  | U.S. and foreign term loans, finance lease obligations and other |  | 21 |
Total debt proceeds |  | $ | 664 |  |  | Total debt repaid |  | $ | 471 |
_______________ (1)Proceeds from medium-term notes presented net of discount and issuance costs. Debt proceeds were used to repay maturing debt and for general corporate purposes. If the unsecured medium-term notes are downgraded below investment grade following, or 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.

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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 https://asc.fasb.org/topic&trid=2208564 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1B -Subparagraph (h) -URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1C -Subparagraph (c) -URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495334-112611 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1I -Subparagraph (a) -URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495371-112611 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1I -Subparagraph (d) -URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495371-112611 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(c)) -URI https://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1B -Subparagraph (g) -URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1C -Subparagraph (b) -URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495334-112611 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1C -Subparagraph (a) -URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495334-112611 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1E -Subparagraph (b) -URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495348-112611 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1B -URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1I -Subparagraph (b) -URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495371-112611 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1B -Subparagraph (i) -URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611 + Details
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