Debt Financing Arrangements



	December 31, 2017			December 31, 2016
	(In millions)
2.5% Notes $1 billion face amount, due in 2026	$	992		$	991

1.75% Notes €600 million face amount, due in 2023	714			627

Floating Rate Notes €500 million face amount, due in 2019	599			526

4.479% Debentures $516 million face amount, due in 2021	501			510

3.75% Notes $500 million face amount, due in 2047	492			—

5.375% Debentures $470 million face amount, due in 2035	460			459

4.016% Debentures $570 million face amount, due in 2043	383			380

4.535% Debentures $528 million face amount due in 2042	379			377

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

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

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	150			149

6.45% Debentures $127 million face amount, due in 2038	126			125

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

5.45% Notes $559 million face amount, due in 2018	—			560

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

Other	490			463
Total long-term debt including current maturities	6,636			6,777
Current maturities	(13		)	(273		)
Total long-term debt	$	6,623		$	6,504

On September 29, 2017, the Company redeemed $559 million aggregate principal amount of 5.45% notes due on March 15, 2018 and incurred an early extinguishment charge of $11 million in the year ended December 31, 2017.

On September 14, 2017, the Company issued $500 million aggregate principal amount of 3.75% notes due in 2047. Proceeds before expenses were $493 million.

On April 15, 2017, the Company retired $261 million aggregate principal amount of 8.375% notes that matured on April 15, 2017.

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.

Discount amortization expense, net of premium amortization, of $11 million, $9 million, and $8 million for the years ended December 31, 2017, 2016, and 2015, respectively, were included in interest expense related to the Company’s long-term debt.

At December 31, 2017, the fair value of the Company’s long-term debt exceeded the carrying value by $1.2 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, 2017, are $13 million, $618 million, $14 million, $670 million, and $8 million, respectively.

At December 31, 2017, the Company had lines of credit, including the accounts receivable securitization programs described below, totaling $7.7 billion, of which $5.5 billion was unused. The weighted average interest rates on short-term borrowings outstanding at December 31, 2017 and 2016, were 2.35% and 5.66%, respectively. Of the Company’s total lines of credit, $5.0 billion support a commercial paper borrowing facility, against which there was $0.7 billion of commercial paper outstanding at December 31, 2017.

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, 2017.

The Company had outstanding standby letters of credit and surety bonds at December 31, 2017 and 2016, totaling $1.2 billion and $1.1 billion, respectively.

The Company has accounts receivable securitization programs (the “Programs”). The Programs provide the Company with up to $1.6 billion in funding resulting from the sale of accounts receivable. As of December 31, 2017, the Company utilized $1.4 billion of its facility under the Programs (see Note 19 for more information on the Programs).