| 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."
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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.
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