SHORT AND LONG-TERM DEBT

12 Months Ended

Dec. 31, 2019

SHORT AND LONG-TERM DEBT

Short-term Debt

As a source of short-term financing, we utilize cash on hand and commercial paper or bank loans with an original maturity of three months or less. We maintain a $1.5 billion unsecured revolving credit facility with the option to increase borrowings by an additional $500 million with the consent of the lenders. This facility is scheduled to expire on July 2, 2024, however, we may extend the termination date for up to two additional one-year periods upon notice to the administrative agent under the facility.

The unsecured committed revolving credit agreement contains a financial covenant whereby the ratio of (a) pre-tax income from operations from the most recent four fiscal quarters to (b) consolidated interest expense for the most recent four fiscal quarters may not be less than 2.0 to 1.0 at the end of each fiscal quarter. The credit agreement also contains customary representations, warranties and events of default. Payment of outstanding advances may be accelerated, at the option of the lenders, should we default in our obligation under the credit agreement. As of December 31, 2019, we are in compliance with all customary affirmative and negative covenants and the financial covenant pertaining to our credit agreement. There were no significant compensating balance agreements that legally restricted these funds.

In addition to the revolving credit facility, we maintain lines of credit with domestic and international commercial banks. Our credit limit in various currencies was $390,299 at December 31, 2019 and $386,590 at December 31, 2018. These lines permit us to borrow at the respective banks’ prime commercial interest rates, or lower. We had short-term foreign bank loans against these lines of credit for $32,282 at December 31, 2019 and $113,189 at December 31, 2018. Commitment fees relating to our revolving credit facility and lines of credit are not material.

At December 31, 2019, we had no outstanding commercial paper. At December 31, 2018, we had outstanding commercial paper totaling $1,084,740, at a weighted average interest rate of 2.4%.

The maximum amount of short-term borrowings outstanding during 2019 and 2018 was $1,275,430 and $2,246,485, respectively. The weighted-average interest rate on short-term borrowings outstanding was 2.4% as of December 31, 2019 and 2.5% as of December 31, 2018.

Long-term Debt

Long-term debt consisted of the following:



December 31,	2019			2018
2.90% Notes due 2020 (2)	$	350,000		$	350,000
4.125% Notes due 2020	350,000			350,000
3.10% Notes due 2021 (2)	350,000			350,000
8.8% Debentures due 2021	84,715			84,715
3.375% Notes due 2023 (2)	500,000			500,000
2.625% Notes due 2023	250,000			250,000
2.050% Notes due 2024 (1)	300,000			—
3.20% Notes due 2025	300,000			300,000
2.30% Notes due 2026	500,000			500,000
7.2% Debentures due 2027	193,639			193,639
2.450% Notes due 2029 (1)	300,000			—
3.375% Notes due 2046	300,000			300,000
3.125% Notes due 2049 (1)	400,000			—
Finance lease obligations	79,643			101,980
Net impact of interest rate swaps, debt issuance costs and unamortized debt discounts	(23,794		)	(20,667		)
Total long-term debt	4,234,203			3,259,667
Less—current portion	703,390			5,387
Long-term portion	$	3,530,813		$	3,254,280

(1)

In October 2019, we issued $300,000 of 2.05% Notes due in 2024, $300,000 of 2.45% Notes due in 2029 and $400,000 of 3.125% Notes due in 2049 (the "2019 Notes"). Proceeds from the issuance of the 2019 Notes, net of discounts and issuance costs, totaled $990,337. The 2019 Notes were issued under a shelf registration statement on Form S-3 filed in May 2018 that registered an indeterminate amount of debt securities.

(2)

In May 2018, we issued $350,000 of 2.90% Notes due in 2020, $350,000 of 3.10% Notes due in 2021 and $500,000 of 3.375% Notes due in 2023 (the "2018 Notes"). Proceeds from the issuance of the 2018 Notes, net of discounts and issuance costs, totaled $1,193,830. The 2018 Notes were issued under a shelf registration statement on Form S-3 filed in June 2015 that registered an indeterminate amount of debt securities.

Additionally, in August 2018, we repaid $300,000 of 1.60% Notes due in 2018 upon their maturity.

Aggregate annual maturities of our long-term Notes (excluding finance lease obligations and net impact of interest rate swaps, debt issuance costs and unamortized debt discounts) are as follows for the years ending December 31:



2020	$	700,000
2021	434,715
2022	—
2023	750,000
2024	300,000
Thereafter	1,993,639

Our debt is principally unsecured and of equal priority. None of our debt is convertible into our Common Stock.

Interest Expense

Net interest expense consists of the following:



For the years ended December 31,	2019			2018			2017
Interest expense	$	157,707		$	151,950		$	104,232
Capitalized interest	(5,585		)	(5,092		)	(4,166		)
Interest expense	152,122			146,858			100,066
Interest income	(7,997		)	(8,021		)	(1,784		)
Interest expense, net	$	144,125		$	138,837		$	98,282