Debt

12 Months Ended

Dec. 31, 2018

Note 4 – Debt

Short-Term Debt

Credco’s short-term debt outstanding (excluding short-term debt to affiliates), defined as borrowings with original contractual maturity dates of less than one year, as of December 31 were as follows:

		2018				2017
		Outstanding	Year-End Stated			Outstanding	Year-End Stated
		Balance	Interest Rate on			Balance	Interest Rate on
(Millions, except percentages)			Debt^(a)				Debt^(a)
Commercial paper^(b)	$	752	2.71	%	$	1,168	1.54	%
Other short-term borrowings^(c)		74	2.39			140	1.27
Total	$	826	2.68	%	$	1,308	1.51	%

For floating-rate issuances, the stated interest rates are weighted based on the outstanding principal balances and interest rates in effect as of December 31, 2018 and 2017.
Average commercial paper outstanding was $228 million and $1,076 million in 2018 and 2017, respectively.
Represents interest-bearing overdrafts with banks.

Long-Term Debt

Credco’s long-term debt outstanding (excluding long-term debt to affiliates), defined as debt with original contractual maturity dates of one year or greater, as of December 31 was as follows:

					2018							2017
			Original				Year-End		Year-End					Year-End		Year-End
			Contractual				Interest		Interest					Interest		Interest
(Millions, except			Maturity		Outstanding		Rate		Rate with			Outstanding		Rate		Rate with
percentages)			Dates		Balance	^(a)	on Debt	^(b)	Swaps	^(b)(c)		Balance	^(a)	on Debt	^(b)	Swaps	^(b)(c)
Fixed Rate
	Senior Notes		2019-2027	$	16,677		2.28	%	3.06	%	$	19,652		2.24	%	2.27	%
Floating Rate
	Senior Notes		2019-2022		3,800		3.31		―			4,550		2.09		―
Unamortized
	Underwriting
		Fees			(30)							(49)
Total Long-Term
	Debt			$	20,447		2.47	%			$	24,153		2.21	%

The outstanding balances include (i) unamortized discount, (ii) the impact of movements in exchange rates on foreign currency denominated debt and (iii) the impact of fair value hedge accounting on certain fixed-rate notes that have been swapped to floating rate through the use of interest rate swaps. Refer to Note 6 for more details on Credco’s treatment of fair value hedges.
For floating-rate issuances, the stated interest rate on debt is weighted based on outstanding principal balances and interest rates in effect as of December 31, 2018 and 2017.
Interest rates with swaps are only presented when swaps are in place to hedge the underlying debt. The interest rates with swaps are weighted based on the outstanding principal balances and the interest rates on the floating leg of the swaps in effect as of December 31, 2018 and 2017.

Aggregate annual maturities on long-term debt obligations (based on contractual maturity or anticipated redemption dates) as of December 31, 2018 were as follows:

(Millions)
2019		$	7,150
2020			6,600
2021			2,890
2022			2,050
2023			―
Thereafter			2,000
	Total		20,690
Unamortized Underwriting Fees			(30)
Unamortized Discount			(29)
Impacts due to Fair Value Hedge Accounting			(184)
Total Long-Term Debt		$	20,447

Credco maintained a bank line of credit of $3.5 billion as of both December 31, 2018 and 2017, all of which was undrawn as of the respective dates. These undrawn amounts support contingent funding needs. Credco paid $2.5 million and $6.0 million in fees to maintain these lines for the years ended December 31, 2018 and 2017, respectively. The availability of the credit line is subject to compliance with certain financial covenants, including the maintenance of a 1.25 minimum required fixed charge coverage ratio. The fixed charge coverage ratio for Credco was 1.49 for the year ended December 31, 2018. As of December 31, 2018 and 2017, Credco was not in violation of any of its debt covenants.

The committed facility does not contain material adverse change clauses that would preclude borrowing under the credit facility. Additionally, the facility may not be terminated should there be a change in Credco’s credit ratings.

Credco paid total interest, primarily related to short- and long-term debt, and corresponding interest rate swaps of $0.6 billion, $0.5 billion and $0.3 billion for the years ended December 31, 2018, 2017 and 2016, respectively.