Commercial Paper and Long-term Debt

12 Months Ended

Dec. 31, 2019

Commercial Paper—In 2019, we made net repayments of $300 million to reduce our short-term commercial paper borrowings outstanding to zero at December 31, 2019. At December 31, 2018, short-term commercial paper borrowings outstanding were $300 million, which had a weighted-average interest rate and original maturity period of 2.954% and 16 days, respectively. The commercial paper notes outstanding had original maturities of not more than 90 days from the date of issuance.

Long-term Debt—Long-term debt, including the current portion of long-term debt, consisted of the following at December 31:



(In millions, except percentages)	2019		2018
$500 notes due 2020, 4.40%	$	500	$	499
$1,000 notes due 2020, 3.125%	999		998
$1,100 notes due 2022, 2.50%	1,097		1,096
$300 notes due 2024, 3.15%	298		298
$382 notes due 2027, 7.20%	374		373
$185 notes due 2028, 7.00%	185		185
$600 notes due 2040, 4.875%	592		592
$425 notes due 2041, 4.70%	420		419
$300 notes due 2044, 4.20%	295		295
Total debt issued and outstanding	$	4,760	$	4,755

The notes are redeemable by us at any time at redemption prices based on U.S. Treasury rates. In the second quarter of 2017, we exercised our call rights to repurchase, at prices based on fixed spreads to the U.S. Treasury rates, $591 million of our long-term debt due March and December 2018 at a loss of $39 million before tax, $25 million net of tax, which is included in other (income) expense, net.

The carrying value of long-term debt is recorded at amortized cost. The fair value of long-term debt is determined using quoted prices in inactive markets, which falls within Level 2 of the fair value hierarchy. The estimated fair value of long-term debt was the following at December 31:



(In millions)	2019		2018
Fair value of long-term debt⁽¹⁾	$	5,337	$	5,063


(1)	Fair value of long-term debt at December 31, 2019 includes current portion of long-term debt fair value of $1,513 million.

The adjustments to the principal amounts of long-term debt were as follows at December 31:



(In millions)	2019			2018
Principal	$	4,792		$	4,792
Unamortized issue discounts	(26		)	(30		)
Unamortized interest rate lock costs	(6		)	(7		)
Total	$	4,760		$	4,755

The aggregate amounts of principal payments due on long-term debt for the next five years are:



(In millions)
2020	$	1,500
2021	—
2022	1,100
2023	—
2024	300
Thereafter	1,892

In September 2019, we entered into a $1.25 billion revolving credit facility maturing in November 2021 and terminated the previous $1.25 billion revolving credit facility maturing in November 2020 without penalty. Under the credit facility, we can borrow, issue letters of credit and backstop commercial paper. Borrowings under this facility bear interest at various rate options, including LIBOR plus a margin based on our credit ratings. Based on our credit ratings at December 31, 2019, borrowings would generally bear interest at LIBOR plus 80.5 basis points. The credit facility is composed of commitments from 20 separate highly rated lenders, each committing no more than 10% of the facility. As of December 31, 2019 and December 31, 2018 there were no borrowings or letters of credit outstanding under our credit facilities.

Under the credit facility we must comply with certain covenants, including a ratio of total debt to total capitalization of no more than 60%. Our ratio of total debt to total capitalization, as those terms are defined in the credit facility, was 28.0% at December 31, 2019. We are providing this ratio as this metric is used by our lenders to monitor our leverage and is also a threshold that could limit our ability to utilize this facility. We were in compliance with our credit facility covenants as of December 31, 2019 and December 31, 2018.

Total cash paid for interest on commercial paper and long-term debt was $193 million, $194 million and $214 million in 2019, 2018 and 2017, respectively.