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Debt

3 Months Ended

Mar. 31, 2017

Debt Disclosure [Abstract]

Debt

7. Debt

Debt consists of (in millions):

		March 31, 2017				December 31, 2016
$500 million in Senior Notes, interest at 1.35% payable semiannually, principal due on December 1, 2017		$	499			$	499
$1.4 billion in Senior Notes, interest at 2.60% payable semiannually, principal due on December 1, 2022			1,391				1,391
$1.1 billion in Senior Notes, interest at 3.95% payable semiannually, principal due on December 1, 2042			1,087				1,087
Other			236				237
Total debt			3,213				3,214
Less current portion			506				506
Long-term debt		$	2,707			$	2,708

The Company has a $4.5 billion, five-year credit facility which expires September 28, 2018. The Company also has a commercial paper program under which borrowings are classified as long-term since the program is supported by the $4.5 billion, five-year credit facility. At March 31, 2017, there were no commercial paper borrowings, and there were no outstanding letters of credit issued under the credit facility, resulting in $4,500 million of funds available under this credit facility. Interest under this multicurrency facility is based upon LIBOR, NIBOR or EURIBOR plus 1.125% subject to a ratings-based grid, or the U.S. prime rate. The credit facility contains a financial covenant regarding maximum debt-to-capitalization ratio of 60%. As of March 31, 2017, the Company was in compliance with a debt-to-capitalization ratio of 18.7%.

The Company had $1,002 million of outstanding letters of credit at March 31, 2017 that are under various bilateral letter of credit facilities. Letters of credit are issued as bid bonds, advanced payment bonds and performance bonds.

The fair value of the Company’s debt is estimated using Level 2 inputs in the fair value hierarchy and is based on quoted prices for those or similar instruments. At March 31, 2017 and December 31, 2016, the fair value of the Company’s unsecured Senior Notes approximated $2,740 million and $2,669 million, respectively. At both March 31, 2017 and December 31, 2016, the carrying value of the Company’s unsecured Senior Notes approximated $2,977 million.

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- References

No definition available.

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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 505
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21475-112644

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02.19,20,22)
-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682

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