Debt Financing Arrangements



	December 31, 2016			December 31, 2015
	(In millions)
2.5% Notes $1 billion, due in 2026	$	991		$	—

1.75% Notes €600 million, due in 2023	627			644

5.45% Notes $562 million face amount, due in 2018	560			561

Floating Rate Notes €500 million, due in 2019	526			541

4.479% Debentures $516 million face amount, due in 2021	510			516

5.375% Debentures $470 million face amount, due in 2035	459			459

5.765% Debentures $378 million face amount, due in 2041	378			378

5.935% Debentures $383 million face amount, due in 2032	378			377

4.016% Debentures $570 million face amount, due in 2043	380			377

4.535% Debentures $528 million face amount due in 2042	377			374

8.375% Debentures $261 million face amount, due in 2017	260			260

7.0% Debentures $164 million face amount, due in 2031	163			163

6.625% Debentures $160 million face amount, due in 2029	159			159

6.95% Debentures $159 million face amount, due in 2097	155			155

7.5% Debentures $150 million face amount, due in 2027	149			149

6.45% Debentures $127 million face amount, due in 2038	125			125

6.75% Debentures $118 million face amount, due in 2027	117			117

Other	463			436
Total long-term debt including current maturities	6,777			5,791
Current maturities	(273		)	(12		)
Total long-term debt	$	6,504		$	5,779

On August 11, 2016, the Company issued $1.0 billion aggregate principal amount of 2.5% Notes due in 2026. Proceeds before expenses were $993 million.

On June 24, 2015, the Company issued €500 million ($563 million) aggregate principal amount of Floating Rate Notes due in 2019 and €600 million ($675 million) aggregate principal amount of 1.75% Notes due in 2023. Proceeds before expenses were €499 million ($562 million) and €594 million ($669 million) from the Floating Rate Notes and the 1.75% Notes, respectively. At December 31, 2016, the Company designated €1.1 billion of these Notes as a hedge of its net investment in a foreign subsidiary.

On July 1, 2015, the Company accepted for repurchase $794 million aggregate principal amount of certain of its outstanding debentures (the “Debentures”) validly tendered and not withdrawn. Pursuant to the terms of its previously announced cash tender offers, the Company paid aggregate total consideration of $961 million for the Debentures accepted for repurchase. In September 2015, the Company redeemed $141 million of its 5.45% outstanding debentures for $156 million. These cash tender offers and the debt redemption were financed by the Euro-denominated debt issued on June 24, 2015. The Company recognized a debt extinguishment charge of $189 million, including transaction expenses of $7 million, in the quarter ended September 30, 2015 pertaining to these transactions.

The debt issuance and the debt repurchase transactions in 2015 as discussed above resulted in a net increase in long-term debt of $0.3 billion.

Discount amortization expense, net of premium amortization, of $9 million, $8 million, and $11 million for the years ended December 31, 2016, 2015, and 2014, respectively, were included in interest expense related to the Company’s long-term debt.

At December 31, 2016, the fair value of the Company’s long-term debt exceeded the carrying value by $1.0 billion, as estimated using quoted market prices (a Level 2 measurement under applicable accounting standards).

The aggregate maturities of long-term debt for the five years after December 31, 2016, are $273 million, $574 million, $542 million, $12 million, and $677 million, respectively.

At December 31, 2016, the Company had lines of credit, including the accounts receivable securitization programs described below, totaling $6.9 billion, of which $5.8 billion was unused. The weighted average interest rates on short-term borrowings outstanding at December 31, 2016 and 2015, were 5.66% and 5.50%, respectively. Of the Company’s total lines of credit, $4.0 billion support a commercial paper borrowing facility, against which there was no commercial paper outstanding at December 31, 2016.

The Company’s credit facilities and certain debentures require the Company to comply with specified financial and non-financial covenants including maintenance of minimum tangible net worth as well as limitations related to incurring liens, secured debt, and certain other financing arrangements. The Company is in compliance with these covenants as of December 31, 2016.

The Company had outstanding standby letters of credit and surety bonds at December 31, 2016 and 2015, totaling $1.1 billion and $0.8 billion, respectively.

The Company has accounts receivable securitization programs (the “Programs”). The Programs provide the Company with up to $1.5 billion in funding resulting from the sale of accounts receivable. As of December 31, 2016, the Company utilized $1.0 billion of its facility under the Programs (see Note 19 for more information on the Programs).