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DEBT
 6 Months Ended
Jun. 30, 2023
Debt Disclosure [Abstract]  
DEBT DEBT
 Weighted Average Interest Rate  
(Dollars in millions)June 30, 2023MaturitiesJune 30, 2023December 31, 2022
Debt:
U.S. commercial paper
5.50%2026$646 $672 
Trade receivables financing program6.02%202450 50 
Global revolving credit facility
—2026— — 
Unsecured U.S. obligations4.16%2024-2027375 375 
Unsecured medium-term note issued February 2018
—2023— 450 
Unsecured medium-term note issued June 2018—2023— 450 
Unsecured medium-term note issued October 20183.88%2023300 300 
Unsecured medium-term note issued February 20193.65%2024600 600 
Unsecured medium-term note issued August 20192.50%2024550 550 
Unsecured medium-term note issued April 20204.63%2025400 400 
Unsecured medium-term note issued May 20203.35%2025400 400 
Unsecured medium-term note issued December 19956.95%2025150 150 
Unsecured medium-term note issued November 2021 (1)
6.03%2026270 270 
Unsecured medium-term note issued November 20192.90%2026400 400 
Unsecured medium-term note issued February 2022 (1)
4.29%2027433 434 
Unsecured medium-term note issued May 20224.30%2027300 300 
Unsecured medium-term note issued February 20235.65%2028500 — 
Unsecured medium-term note issued May 20235.25%2028650 — 
Unsecured foreign obligations2.88%202450 50 
Asset-backed U.S. obligations (2)
3.22%2023-2030432 477 
Finance lease obligations and other2023-204144 42 
6,550 6,370 
Debt issuance costs and original issue discounts(25)(18)
Total debt (3)
6,525 6,352 
Short-term debt and current portion of long-term debt(1,330)(1,349)
Long-term debt$5,195 $5,003 
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(1)Includes impact from the fair market values of hedging instruments on our notes, which was $47 million as of both June 30, 2023 and December 31, 2022, and was included in "Other non-current liabilities" within the Condensed Consolidated Balance Sheets. The notional amount of interest rate swaps designated as fair value hedges was $500 million as of both June 30, 2023 and December 31, 2022.
(2)Asset-backed U.S. obligations are related to financing transactions backed by a portion of our revenue earning equipment.
(3)The unsecured medium-term notes bear semi-annual interest.


The fair value of total debt (excluding finance lease and asset-backed U.S. obligations) was approximately $6.0 billion and $5.7 billion as of June 30, 2023 and December 31, 2022, respectively. For publicly traded debt, estimates of fair value were based on market prices. For other debt, fair value was estimated based on a model-driven approach using rates currently available to us for debt with similar terms and remaining maturities. The fair value measurements of our publicly traded debt and our other debt were classified within Level 2 of the fair value hierarchy.

As of June 30, 2023, there was $754 million available under the global revolving credit facility. In order to maintain availability of funding, we must maintain a ratio of debt to consolidated net worth of less than or equal to 300%, as defined in the credit facility agreement. As of June 30, 2023, the ratio was 164%.

On April 25, 2023, certain terms of our global revolving credit facility were amended. Pursuant to the amendment, among other items, (i) the definition of consolidated net worth was revised to exclude impacts from our exit of the FMS U.K. business,
(ii) LIBOR was replaced as an available benchmark interest rate with term secured overnight financing rate (SOFR), and (iii) the maximum absolute dollar amounts for our trade receivables financing program and asset-backed financings were removed and the percentage-based maximum amounts were substantially increased.

We had letters of credit and surety bonds outstanding of $466 million and $513 million as of June 30, 2023 and December 31, 2022, respectively, which primarily guarantee the payment of insurance claims.

As of June 30, 2023, the available proceeds under the trade receivables financing program were $217 million. As of June 30, 2023, utilization of this program included borrowing of $50 million and letters of credit outstanding of $33 million. On April 24, 2023, we extended the trade receivables financing program for an additional year to April 2024.

The following table summarizes our debt proceeds and repayments in 2023:

Six months ended June 30, 2023
(In millions)Debt ProceedsDebt Repayments
Medium-term notes (1)
$1,142 Medium-term notes$900 
U.S. and foreign term loans, finance lease obligations and other172 U.S. and foreign term loans, finance lease obligations and other224 
Total debt proceeds
$1,314 Total debt repaid$1,124 
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(1)Proceeds from medium-term notes presented net of discount and issuance costs.

Debt proceeds were used to repay maturing debt and for general corporate purposes. If the unsecured medium-term notes are downgraded below investment grade following, or as a result of, a change in control, the note holders can require us to repurchase all or a portion of the notes at a purchase price equal to 101% of principal value plus accrued and unpaid interest.