v3.10.0.1
Debt (Tables)
12 Months Ended
Dec. 31, 2018
Debt Disclosure [Abstract]  
Schedule of Short-Term Debt

Short-term debt

 

 

 

2018

 

 

2017

 

Short-term bank borrowings

 

 

-

 

 

-

 

Current portion of long-term debt (*)

 

 

1,107

 

 

 

751

 

Total

 

 

1,107

 

 

 

751

 

 

(*)

Net of adjustment for debt issuance costs.

Summary of Outstanding Long-Term Debt

Long-term debt

The following table summarizes the outstanding long-term debt as of December 31, 2018 and 2017:

 

 

 

 

 

2018

 

 

2017

 

 

 

Maturities

 

Amount

 

 

Effective rate

 

 

Amount

 

 

Effective rate

 

Fixed-rate 3.75% senior unsecured notes

 

Jun, 2018

 

-

 

 

 

3.750

 

 

 

750

 

 

 

3.750

 

Fixed-rate 4.125% senior unsecured notes

 

Jun, 2020

 

 

600

 

 

 

4.125

 

 

 

600

 

 

 

4.125

 

Fixed-rate 4.125% senior unsecured notes

 

Jun, 2021

 

 

1,350

 

 

 

4.125

 

 

 

1,350

 

 

 

4.125

 

Fixed-rate 4.625% senior unsecured notes

 

Jun, 2022

 

 

400

 

 

 

4.625

 

 

 

400

 

 

 

4.625

 

Fixed-rate 3.875% senior unsecured notes

 

Sep, 2022

 

 

1,000

 

 

 

3.875

 

 

 

1,000

 

 

 

3.875

 

Fixed-rate 5.75% senior unsecured notes

 

Mar, 2023

 

-

 

 

 

5.750

 

 

 

500

 

 

 

5.750

 

Fixed-rate 4.625% senior unsecured notes

 

Jun, 2023

 

 

900

 

 

 

4.625

 

 

 

900

 

 

 

4.625

 

Fixed-rate 4.875% senior unsecured notes

 

Mar, 2024

 

 

1,000

 

 

 

4.875

 

 

-

 

 

-

 

Fixed-rate 5.35% senior unsecured notes

 

Mar, 2026

 

 

500

 

 

 

5.350

 

 

-

 

 

-

 

Fixed-rate 5.55% senior unsecured notes

 

Dec, 2028

 

 

500

 

 

 

5.550

 

 

-

 

 

-

 

Fixed-rate 1% cash convertible notes

 

Dec, 2019

 

 

1,150

 

 

 

1.000

 

 

 

1,150

 

 

 

1.000

 

Floating-rate revolving credit facility

 

Dec, 2020

 

-

 

 

-

 

 

-

 

 

-

 

Total principal

 

 

 

 

7,400

 

 

 

 

 

 

 

6,650

 

 

 

 

 

Liabilities arising from capital lease transactions

 

 

 

 

27

 

 

 

 

 

 

 

29

 

 

 

 

 

Unamortized discounts, premiums and debt

   issuance costs

 

 

 

 

(31

)

 

 

 

 

 

(28)

 

 

 

 

 

Fair value of embedded cash conversion option

 

 

 

 

(42

)

 

 

 

 

 

 

(86

)

 

 

 

 

Total debt, including unamortized discounts,

   premiums, debt issuance costs and fair value

  adjustments

 

 

 

 

7,354

 

 

 

 

 

 

 

6,565

 

 

 

 

 

Current portion of long-term debt

 

 

 

 

(1,107

)

 

 

 

 

 

 

(751

)

 

 

 

 

Long-term debt

 

 

 

 

6,247

 

 

 

 

 

 

 

5,814

 

 

 

 

 

Schedule of Long-Term Debt

 

 

Range of interest rates

 

 

Average rate of interest

 

 

Principal amount outstanding

2018

 

 

Due in 2019

 

 

Due after 2019

 

 

Due after 2023

 

 

Average remaining term

(in years)

 

 

Principal  amount

outstanding

2017

 

USD notes

 

3.9%-5.8%

 

 

 

4.5

%

 

 

6,250

 

 

 

-

 

 

 

6,250

 

 

 

2,000

 

 

 

4.3

 

 

 

5,500

 

2019 Cash Convertible Senior Notes

 

 

1.0

%

 

 

1.0

%

 

 

1,150

 

 

 

1,150

 

 

 

-

 

 

 

-

 

 

 

0.9

 

 

 

1,150

 

Revolving Credit Facility (1)

 

-

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Bank borrowings

 

-

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Liabilities arising from capital lease

   transactions

 

4.5%-13.8%

 

 

 

4.6

%

 

 

27

 

 

 

2

 

 

 

25

 

 

 

19

 

 

 

13.2

 

 

 

29

 

 

 

 

 

 

 

 

4.0

%

 

 

7,427

 

 

 

1,152

 

 

 

6,275

 

 

 

2,019

 

 

 

3.8

 

 

 

6,679

 

 

(1)

We do not have any borrowings under the $600 million Revolving Credit Facility as of December 31, 2018 and 2017.

Principal Amounts of Long-Term Debt

As of December 31, 2018, the following principal amounts of long-term debt are due in the next 5 years:

 

2019

 

 

1,152

 

2020

 

 

601

 

2021

 

 

1,351

 

2022

 

 

1,402

 

2023

 

 

902

 

Due after 5 years

 

 

2,019

 

 

 

 

7,427

 

Summary of Principal Amount, Unamortized Debt Discount and Net Carrying Amount of Liability Component

The principal amount, unamortized debt discount and net carrying amount of the liability component of the 2019 Cash Convertible Senior Notes as of December 31, 2018 and 2017 was as follows:

 

 

 

As of December 31

 

(in millions)

 

2018

 

 

2017

 

Principal amount of 2019 Cash Convertible Senior Notes

 

 

1,150

 

 

 

1,150

 

Unamortized debt discount of 2019 Cash Convertible Senior Notes

 

 

45

 

 

 

91

 

Net liability of 2019 Cash Convertible Senior Notes

 

 

1,105

 

 

 

1,059

 

Summary of Effective Interest Rate, Contractual Interest Expense and Amortization of Debt Discount

The effective interest rate, contractual interest expense and amortization of debt discount for the 2019 Cash Convertible Senior Notes for fiscal 2018 and 2017 were as follows:

 

(in millions, except percentage)

 

2018

 

 

2017

 

Effective interest rate

 

 

5.14

%

 

 

5.14

%

Contractual interest expense

 

 

12

 

 

 

12

 

Amortization of debt discount

 

 

44

 

 

 

42