Quarterly report pursuant to Section 13 or 15(d)

Borrowings

v3.8.0.1
Borrowings
9 Months Ended
Sep. 30, 2017
Debt Disclosure [Abstract]  
Borrowings [Text Block]
Note 13: Borrowings
Short-Term Debt
(In Millions)
 
Sep 30,
2017
 
Dec 31,
2016
Drafts payable
 
$
21

 
$
25

Current portion of long-term debt
 
4,129

 
4,618

Less: debt issuance costs associated with the current portion of long-term debt
 
(8
)
 
(9
)
Total short-term debt
 
$
4,142

 
$
4,634


Our current portion of long-term debt includes our 2009 junior subordinated convertible debentures due 2039.
We have an ongoing authorization from our Board of Directors to borrow up to $10.0 billion under our commercial paper program. This amount includes an increase of $5.0 billion in the authorization limit approved by our Board of Directors in April 2017.
During the second quarter of 2017, we repaid $500 million of our 1.75% senior notes that matured in May 2017.
Long-Term Debt
Our indebtedness is carried at amortized cost net of applicable hedge adjustments.
(In Millions)
 
Sep 30,
2017
 
Dec 31,
2016
Floating-rate senior notes:
 
 
 
 
$700, three-month LIBOR plus 0.08%, due May 2020
 
$
700

 
$

$800, three-month LIBOR plus 0.35%, due May 2022
 
800

 

Fixed-rate senior notes:
 
 
 
 
$500, 1.75%, due May 2017
 

 
501

$3,000, 1.35%, due December 2017
 
3,000

 
2,999

$600, 2.50%, due November 2018
 
602

 
604

A$250, 3.25%, due December 20191
 
196

 
180

$1,000, 1.85%, due May 2020
 
1,000

 

$1,750, 2.45%, due July 2020
 
1,749

 
1,749

$500, 1.70%, due May 2021
 
499

 
499

$2,000, 3.30%, due October 2021
 
1,995

 
1,988

$750, 2.35%, due May 2022
 
747

 

$1,000, 3.10%, due July 2022
 
994

 
987

A$550, 4.00%, due December 20221
 
431

 
394

$1,500, 2.70%, due December 2022
 
1,491

 
1,480

$400, 4.10%, due November 2023
 
421

 
424

$1,250, 2.88%, due May 2024
 
1,242

 

$600, 2.70%, due June 2024
 
596

 

$2,250, 3.70%, due July 2025
 
2,177

 
2,148

$1,000, 2.60%, due May 2026
 
993

 
983

$1,000, 3.15%, due May 2027
 
991

 

$750, 4.00%, due December 2032
 
745

 
745

$1,500, 4.80%, due October 2041
 
1,491

 
1,491

$925, 4.25%, due December 2042
 
924

 
924

$2,000, 4.90%, due July 2045
 
1,999

 
1,999

$1,007, 4.90%, due August 2045
 

 
995

$915, 4.70%, due December 2045
 
910

 
894

$1,250, 4.10%, due May 2046
 
1,243

 
1,243

$1,000, 4.10%, due May 2047
 
994

 

$640, 4.10%, due August 2047
 
638

 

Junior subordinated convertible debentures:
 
 
 
 
$1,600, 2.95%, due December 2035
 
1,004

 
992

$2,000, 3.25%, due August 2039
 
1,130

 
1,118

Long-term debt
 
31,702

 
25,337

Less: current portion of long-term debt
 
(4,129
)
 
(4,618
)
Less: debt issuance costs
 
(75
)
 
(70
)
Total long-term debt
 
$
27,498

 
$
20,649


1 
To manage foreign currency risk associated with the Australian-dollar-denominated notes issued in 2015, we entered into currency interest rate swaps with an aggregate notional amount of $577 million, which effectively converted these notes to U.S.-dollar-denominated notes. For further discussion on our currency interest rate swaps, see "Note 16: Derivative Financial Instruments."
During the second quarter of 2017, we issued a total of $7.1 billion aggregate principal amount of senior notes. We intend to use the net proceeds from the offering of the notes for general corporate purposes, which may include refinancing of outstanding debt or repurchases of shares of our common stock.
During the third quarter of 2017, we redeemed the $1.0 billion 4.90% senior notes due August 2045. Additionally, we issued a total of $640 million aggregate principal amount of senior notes. We used the net proceeds from the offering of the notes to finance a portion of the redemption price of our 4.90% senior notes due August 2045.
Our senior floating rate notes pay interest quarterly and our senior fixed rate notes pay interest semiannually. We may redeem the fixed rate notes prior to their maturity at our option at specified redemption prices and subject to certain restrictions. The obligations under the notes rank equally in right of payment with all of our other existing and future senior unsecured indebtedness and effectively rank junior to all liabilities of our subsidiaries.
For further information on our debt instruments, see "Note 14: Borrowings" in Part II, Item 8 of our 2016 Form 10-K.