Short-Term Borrowings and Long-Term Debt (Notes)

9 Months Ended

Sep. 30, 2020

Short-Term Borrowings and Long-Term Debt

Short-term borrowings and senior unsecured long-term debt consisted of the following:


	September 30, 2020						December 31, 2019
(in millions, except percentages)	Par Value		Carrying Value		Fair Value		Par Value		Carrying Value		Fair Value
Commercial paper	$	—	$	—	$	—	$	400	$	400	$	400
2.700% notes due July 2020	—		—		—		1,500		1,499		1,506
Floating rate notes due October 2020	300		300		300		300		300		300
3.875% notes due October 2020	450		450		451		450		450		455
1.950% notes due October 2020	900		900		901		900		899		900
4.700% notes due February 2021	400		403		402		400		403		410
2.125% notes due March 2021	750		749		756		750		749		753
Floating rate notes due June 2021	350		350		351		350		349		350
3.150% notes due June 2021	400		400		408		400		399		407
3.375% notes due November 2021	500		509		513		500		501		512
2.875% notes due December 2021	750		765		774		750		753		765
2.875% notes due March 2022	1,100		1,115		1,133		1,100		1,087		1,121
3.350% notes due July 2022	1,000		998		1,054		1,000		998		1,036
2.375% notes due October 2022	900		897		937		900		896		911
0.000% notes due November 2022	15		13		14		15		13		14
2.750% notes due February 2023	625		646		656		625		624		638
2.875% notes due March 2023	750		793		794		750		770		770
3.500% notes due June 2023	750		748		811		750		747		786
3.500% notes due February 2024	750		746		825		750		746		792
2.375% notes due August 2024	750		747		799		750		747		760
3.750% notes due July 2025	2,000		1,992		2,283		2,000		1,990		2,161
3.700% notes due December 2025	300		298		343		300		298		325
1.250% notes due January 2026	500		496		513		—		—		—
3.100% notes due March 2026	1,000		996		1,118		1,000		996		1,048
3.450% notes due January 2027	750		746		853		750		746		804
3.375% notes due April 2027	625		620		713		625		620		667
2.950% notes due October 2027	950		940		1,060		950		939		988
3.850% notes due June 2028	1,150		1,143		1,357		1,150		1,142		1,269
3.875% notes due December 2028	850		843		1,010		850		843		941
2.875% notes due August 2029	1,000		1,104		1,115		1,000		993		1,029
2.000% notes due May 2030	1,250		1,233		1,310		—		—		—
4.625% notes due July 2035	1,000		992		1,317		1,000		992		1,215
5.800% notes due March 2036	850		839		1,231		850		838		1,129
6.500% notes due June 2037	500		492		778		500		492		712
6.625% notes due November 2037	650		641		1,027		650		641		940
6.875% notes due February 2038	1,100		1,077		1,772		1,100		1,076		1,631
3.500% notes due August 2039	1,250		1,241		1,436		1,250		1,241		1,313
2.750% notes due May 2040	1,000		964		1,057		—		—		—
5.700% notes due October 2040	300		296		438		300		296		396
5.950% notes due February 2041	350		346		525		350		345		475
4.625% notes due November 2041	600		589		787		600		589		716
4.375% notes due March 2042	502		485		639		502		484		580
3.950% notes due October 2042	625		608		760		625		607		688
4.250% notes due March 2043	750		735		949		750		735		856
4.750% notes due July 2045	2,000		1,973		2,730		2,000		1,973		2,463
4.200% notes due January 2047	750		738		950		750		738		861
4.250% notes due April 2047	725		717		923		725		717		839
3.750% notes due October 2047	950		934		1,130		950		934		1,023
4.250% notes due June 2048	1,350		1,330		1,721		1,350		1,330		1,569
4.450% notes due December 2048	1,100		1,086		1,457		1,100		1,086		1,316
3.700% notes due August 2049	1,250		1,235		1,496		1,250		1,235		1,344
2.900% notes due May 2050	1,250		1,208		1,318		—		—		—
3.875% notes due August 2059	1,250		1,228		1,529		1,250		1,228		1,350
3.125% notes due May 2060	1,000		968		1,073		—		—		—
Total short-term borrowings and long-term debt	$	42,917	$	42,662	$	50,597	$	39,817	$	39,474	$	44,234

The Company’s long-term debt obligations also included $1.1 billion and $1.2 billion of other financing obligations, of which $347 million and $322 million were classified as current as of September 30, 2020 and December 31, 2019, respectively.

Commercial Paper and Bank Credit Facilities

Commercial paper consists of short-duration, senior unsecured debt privately placed on a discount basis through broker-dealers.

The Company has $4.4 billion five-year, $4.4 billion three-year and $3.8 billion 364-day revolving bank credit facilities with 25 banks, which mature in December 2024, December 2022 and December 2020, respectively. These facilities provide liquidity support for the Company’s commercial paper program and are available for general corporate purposes. As of September 30, 2020, no amounts had been drawn on any of the bank credit facilities. The annual interest rates, which are variable based on term, are calculated based on the London Interbank Offered Rate (LIBOR) plus a credit spread based on the Company’s senior unsecured credit ratings. If amounts had been drawn on the bank credit facilities as of September 30, 2020, annual interest rates would have ranged from 0.8% to 1%.

Debt Covenants

The Company’s bank credit facilities contain various covenants, including covenants requiring the Company to maintain a defined debt to debt-plus-shareholders’ equity ratio of not more than 60%. The Company was in compliance with its debt covenants as of September 30, 2020.