Debt Financing Arrangements



	December 31, 2018			December 31, 2017
	(In millions)
2.5% Notes $1 billion face amount, due in 2026	$	993		$	992

1.0% Notes €650 million face amount, due in 2025	736			—

1.75% Notes €600 million face amount, due in 2023	682			714

4.5% Notes $600 million face amount, due in 2049	587			—

Floating Rate Notes €500 million face amount, due in 2019	572			599

4.479% Debentures $516 million face amount, due in 2021	493			501

3.75% Notes $500 million face amount, due in 2047	493			492

5.375% Debentures $470 million face amount, due in 2035	461			460

3.375% Notes $400 million face amount, due in 2022	398			—

4.016% Debentures $570 million face amount, due in 2043	386			383

4.535% Debentures $528 million face amount due in 2042	382			379

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	149			150

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

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

Other	472			490
Total long-term debt including current maturities	8,280			6,636
Current maturities	(582		)	(13		)
Total long-term debt	$	7,698		$	6,623

On December 3, 2018, the Company issued $600 million and $400 million aggregate principal amounts of 4.5% Notes due in 2049 and 3.375% Notes due in 2022, respectively. Net proceeds before expenses for the 4.5% and 3.375% Notes were $588 million and $399 million, respectively.

On September 12, 2018, the Company issued €650 million ($744 million as of December 31, 2018) aggregate principal amount of 1.0% Notes due in 2025. Net proceeds before expenses were $747 million.

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.

Discount amortization expense, net of premium amortization, of $10 million, $11 million, and $9 million for the years ended December 31, 2018, 2017, and 2016, respectively, are included in interest expense related to the Company’s long-term debt.

At December 31, 2018, the fair value of the Company’s long-term debt exceeded the carrying value by $0.7 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, 2018, are $582 million, $16 million, $666 million, $409 million, and $11 million, respectively.

At December 31, 2018, the Company had lines of credit, including the accounts receivable securitization programs described below, totaling $10.4 billion, of which $8.9 billion was unused. The weighted average interest rates on short-term borrowings outstanding at December 31, 2018 and 2017, were 7.95% and 2.35%, respectively. Of the Company’s total lines of credit, $5.0 billion supported the combined U.S. and European commercial paper borrowing programs, against which there was no commercial paper outstanding at December 31, 2018.

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, 2018.

The Company had outstanding standby letters of credit and surety bonds at December 31, 2018 and 2017, totaling $1.7 billion and $1.2 billion, respectively.

The Company has accounts receivable securitization programs (the “Programs”). The Programs provide the Company with up to $1.8 billion in funding resulting from the sale of accounts receivable. As of December 31, 2018, the Company utilized $1.5 billion of its facility under the Programs (see Note 19 for more information on the Programs).