XML 30 R20.htm IDEA: XBRL DOCUMENT v3.22.2
Borrowings
6 Months Ended
Jun. 30, 2022
Borrowings  
Borrowings

12. Borrowings: 

Short-Term Debt

    

At June 30, 

    

At December 31, 

(Dollars in millions)

2022

2021

Short-term loans

$

230

$

22

Long-term debt current maturities

 

5,752

 

6,764

Total

$

5,981

$

6,787

Included within short-term debt in the company’s Consolidated Balance Sheet at June 30, 2022 is $218 million of secured borrowings recorded at fair value from the short-term credit facility and the Exchange as described in note 8, “Financial Assets & Liabilities.”

The weighted-average interest rate for short-term loans excluding the aforementioned secured borrowings was 1.9 percent and 6.7 percent at June 30, 2022 and December 31, 2021, respectively.

Long-Term Debt

Pre-Swap Borrowing

    

    

    

Balance

    

Balance

(Dollars in millions)

Maturities

6/30/2022

12/31/2021

U.S. dollar debt (weighted-average interest rate at June 30, 2022):*

 

  

 

  

 

  

2.4%

 

2022

$

1,904

$

5,673

3.4%

 

2023

 

1,552

 

1,573

3.3%

 

2024

 

5,013

 

5,016

7.0%

 

2025

 

605

 

608

3.3%

 

2026

 

4,352

 

4,356

2.8%

 

2027

 

2,871

 

2,221

6.5%

 

2028

313

 

313

3.5%

2029

3,250

3,250

2.0%

2030

1,350

1,350

4.4%

 

2032

 

1,100

 

600

8.0%

 

2038

 

83

 

83

4.5%

 

2039

 

2,745

 

2,745

2.9%

2040

650

 

650

4.0%

 

2042

 

1,107

1,107

7.0%

 

2045

 

27

 

27

4.7%

 

2046

 

650

 

650

4.3%

2049

3,000

 

3,000

3.0%

2050

750

750

3.4%

2052

650

7.1%

 

2096

 

316

 

316

$

32,288

$

34,290

Other currencies (weighted-average interest rate at June 30, 2022, in parentheses):*

 

  

 

  

 

  

Euro (1.1%)

 

2023–2040

$

16,718

$

15,903

Pound sterling (2.6%)

 

2022

 

364

 

406

Japanese yen (0.3%)

 

2022–2026

 

1,070

 

1,263

Other (15.7%)

 

2022–2025

 

315

 

378

$

50,755

$

52,240

Finance lease obligations (2.0%)

2022–2030

108

99

$

50,863

$

52,339

Less: net unamortized discount

 

  

 

837

 

839

Less: net unamortized debt issuance costs

 

  

 

134

 

130

Add: fair value adjustment**

 

  

 

187

 

311

$

50,079

$

51,681

Less: current maturities

 

  

 

5,752

 

6,764

Total

 

  

$

44,328

$

44,917

*   Includes notes, debentures, bank loans and secured borrowings.

**

The portion of the company’s fixed-rate debt obligations that is hedged is reflected in the Consolidated Balance Sheet as an amount equal to the sum of the debt’s carrying value and a fair value adjustment representing changes in the fair value of the hedged debt obligations attributable to movements in benchmark interest rates.

The company’s indenture governing its debt securities and its various credit facilities each contain significant covenants which obligate the company to promptly pay principal and interest, limit the aggregate amount of secured indebtedness and sale and leaseback transactions to 10 percent of the company’s consolidated net tangible assets, and restrict the company’s ability to merge or consolidate unless certain conditions are met. The credit facilities also include

a covenant on the company’s consolidated net interest expense ratio, which cannot be less than 2.20 to 1.0, as well as a cross default provision with respect to other defaulted indebtedness of at least $500 million.

The company is in compliance with its debt covenants and provides periodic certifications to its lenders. The failure to comply with its debt covenants could constitute an event of default with respect to the debt to which such provisions apply. If certain events of default were to occur, the principal and interest on the debt to which such event of default applied would become immediately due and payable.

In the first quarter of 2022, the company issued $2.3 billion of Euro fixed-rate notes in tranches with maturities ranging from 8 to 12 years and coupons ranging from 0.875 to 1.25 percent, and $1.8 billion of U.S. dollar fixed-rate notes with maturities ranging from 5 to 30 years and coupons ranging from 2.20 to 3.43 percent.

Pre-swap annual contractual obligations of long-term debt outstanding at June 30, 2022, were as follows:

(Dollars in millions)

    

Total

Remainder of 2022

$

2,778

2023

 

4,607

2024

 

6,262

2025

 

3,745

2026

 

4,664

Thereafter

 

28,807

Total

$

50,863

Interest on Debt

(Dollars in millions)

    

    

    

    

For the six months ended June 30:

2022

2021

Cost of financing

$

165

$

210

Interest expense

 

607

 

561

Interest capitalized

 

2

 

2

Total interest paid and accrued

$

775

$

774

Lines of Credit

On June 30, 2022, the company amended its existing $2.5 billion Three-Year Credit Agreement and $7.5 billion Five-Year Credit Agreement (the Credit Agreements) to extend the maturity dates to June 20, 2025 and June 22, 2027, respectively, and to replace the London Interbank Offered Rate (LIBOR) interest rate provisions with customary provisions based on the Secured Overnight Financing Rate (SOFR). The Credit Agreements permit the company and its subsidiary borrowers to borrow up to $10 billion on a revolving basis. At June 30, 2022, there were no borrowings by the company, or its subsidiaries, under these credit facilities.