Debt

12 Months Ended

Dec. 31, 2019

Short-term debt— Short-term debt represents obligations with a maturity date of one year or less and is stated at cost which approximates fair value. Short-term debt also includes current maturities of long-term debt. Short-term debt as of December 31, 2019 and 2018 consisted of the following:



In millions	2019		2018
Current maturities of long-term debt	$	4	$	1,350
Bank overdrafts	—		1
Total short-term debt	$	4	$	1,351

As of December 31, 2019, short-term debt included $4 million related to the 4.88% notes due through December 31, 2020. As of December 31, 2018, short-term debt included $650 million related to the 1.95% notes due March 1, 2019 and $700 million related to the 6.25% notes due April 1, 2019, both of which were repaid on the due date. There was no commercial paper outstanding as of December 31, 2019 and 2018.

The Company may issue commercial paper to fund general corporate needs, share repurchases, and small and medium-sized acquisitions. During the third quarter of 2019, the Company entered into a $2.5 billion, five-year line of credit

agreement with a termination date of September 27, 2024 to support the potential issuances of commercial paper. This agreement replaced the existing $2.5 billion line of credit agreement with a termination date of May 9, 2021. No amounts were outstanding under the line of credit agreement as of December 31, 2019. The Company was also in compliance with the financial covenants of the line of credit agreement as of December 31, 2019, which included a minimum interest coverage ratio. The weighted-average interest rate on commercial paper was 2.5% and 1.7% for the twelve months ended December 31, 2019 and 2018, respectively.

As of December 31, 2019, the Company had unused capacity of approximately $206 million under international debt facilities.

Long-term debt— Long-term debt represents obligations with a maturity date greater than one year, and excludes current maturities that have been reclassified to short-term debt. Long-term debt at carrying value and fair value as of December 31, 2019 and 2018 consisted of the following:



		2019					2018
In millions	Effective Interest Rate	Carrying Value			Fair Value		Carrying Value			Fair Value
1.95% notes due March 1, 2019	1.98%	$	—		$	—	$	650		$	649
6.25% notes due April 1, 2019	6.25%	—			—		700			706
4.88% notes due thru December 31, 2020	4.96%	4			4		4			4
3.375% notes due September 15, 2021	3.43%	349			358		349			354
1.75% Euro notes due May 20, 2022	1.86%	558			584		570			603
1.25% Euro notes due May 22, 2023	1.35%	558			584		569			596
3.50% notes due March 1, 2024	3.54%	697			742		696			712
0.25% Euro notes due December 5, 2024	0.31%	668			677		—			—
2.65% notes due November 15, 2026	2.69%	993			1,032		993			933
0.625% Euro notes due December 5, 2027	0.71%	554			570		—			—
2.125% Euro notes due May 22, 2030	2.18%	555			644		567			620
1.00% Euro notes due June 5, 2031	1.09%	552			580		—			—
3.00% Euro notes due May 19, 2034	3.13%	548			724		560			678
4.875% notes due September 15, 2041	4.97%	637			829		636			719
3.90% notes due September 1, 2042	3.96%	1,082			1,283		1,081			1,087
Other borrowings		3			3		4			4
Total		$	7,758		$	8,614	$	7,379		$	7,665
Less: Current maturities of long-term debt		(4		)			(1,350		)
Total long-term debt		$	7,754				$	6,029

The approximate fair values of the Company’s long-term debt, including current maturities, were based on a valuation model using Level 2 observable inputs, which included market rates for comparable instruments for the respective periods.

In 2005, the Company issued $54 million of 4.88% notes due through December 31, 2020 at 100% of face value.

In 2009, the Company issued $700 million of 6.25% redeemable notes due April 1, 2019 at 99.98% of face value, which were repaid on the due date.

In 2011, the Company issued $350 million of 3.375% notes due September 15, 2021 at 99.552% of face value and $650 million of 4.875% notes due September 15, 2041 at 98.539% of face value.

In 2012, the Company issued $1.1 billion of 3.9% notes due September 1, 2042 at 99.038% of face value.

In February 2014, the Company issued $650 million of 1.95% notes due March 1, 2019 at 99.871% of face value and $700 million of 3.5% notes due March 1, 2024 at 99.648% of face value. The $650 million of 1.95% notes due March 1, 2019 were repaid on the due date.

In May 2014, the Company issued €500 million of 1.75% Euro notes due May 20, 2022 at 99.16% of face value and €500 million of 3.0% Euro notes due May 19, 2034 at 98.089% of face value.

In May 2015, the Company issued €500 million of 1.25% Euro notes due May 22, 2023 at 99.239% of face value and €500 million of 2.125% Euro notes due May 22, 2030 at 99.303% of face value. Net proceeds from the May 2015 debt issuances were used to repay commercial paper and for general corporate purposes.

In November 2016, the Company issued $1.0 billion of 2.65% notes due November 15, 2026 at 99.685% of face value. Net proceeds from the November 2016 debt issuance were used to repay commercial paper and for general corporate purposes.

In June 2019, the Company issued €600 million of 0.25% Euro notes due December 5, 2024 at 99.662% of face value, €500 million of 0.625% Euro notes due December 5, 2027 at 99.343% of face value and €500 million of 1.00% Euro notes due June 5, 2031 at 98.982% of face value. Net proceeds from the issuances were used to repay commercial paper and for general corporate purposes.

The Company designated the €1.0 billion of Euro notes issued in May 2014, the €1.0 billion of Euro notes issued in May 2015 and the €1.6 billion of Euro notes issued in June 2019 as hedges of a portion of its net investment in Euro-denominated foreign operations to reduce foreign currency risk associated with the investment in these operations. Refer to Note 13. Stockholders' Equity for additional information regarding the net investment hedge.

All of the Company's notes listed above represent senior unsecured obligations ranking equal in right of payment. As of December 31, 2019, scheduled future maturities of long-term debt, including current maturities of long-term debt, for the twelve months ending December 31 were as follows:



In millions
2020	$	4
2021	349
2022	558
2023	558
2024	1,365
2025 and future years	4,924
Total	$	7,758