XML 27 R16.htm IDEA: XBRL DOCUMENT v3.23.1
DEBT
 3 Months Ended
Mar. 31, 2023
Debt Disclosure [Abstract]  
DEBT DEBT
 Weighted Average Interest Rate  
(Dollars in millions)March 31, 2023MaturitiesMarch 31, 2023December 31, 2022
Debt:
U.S. commercial paper
5.02%2026$457 $672 
Canadian commercial paper
—2026— — 
Trade receivables financing program5.60%2023215 50 
Global revolving credit facility
—2026— — 
Unsecured U.S. obligations4.16%2027375 375 
Unsecured medium-term note issued February 2018
—2023— 450 
Unsecured medium-term note issued June 20183.75%2023450 450 
Unsecured medium-term note issued October 20183.88%2023300 300 
Unsecured medium-term note issued February 20193.65%2024600 600 
Unsecured medium-term note issued August 20192.50%2024550 550 
Unsecured medium-term note issued April 20204.63%2025400 400 
Unsecured medium-term note issued May 20203.35%2025400 400 
Unsecured medium-term note issued December 19956.95%2025150 150 
Unsecured medium-term note issued November 2021 (1)
5.50%2026274 270 
Unsecured medium-term note issued November 20192.90%2026400 400 
Unsecured medium-term note issued February 2022 (1)
4.16%2027436 434 
Unsecured medium-term note issued May 20224.30%2027300 300 
Unsecured medium-term note issued February 20235.65%2028500 — 
Unsecured foreign obligations2.88%202450 50 
Asset-backed U.S. obligations (2)
3.06%2023-2029460 477 
Finance lease obligations and other2023-204143 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 ProceedsDebt Repayments
Medium-term notes (1)
$499 Medium-term notes$450 
U.S. and foreign term loans, finance lease obligations and other165 U.S. and foreign term loans, finance lease obligations and other21 
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.