Borrowings and Lines of Credit



(dollars in millions)	September 30, 2018		December 31, 2017
Commercial paper	$	1,380	$	300
Other borrowings	196		92
Total short-term borrowings	$	1,576	$	392

At September 30, 2018, we had revolving credit agreements with various banks permitting aggregate borrowings of up to $4.35 billion, pursuant to a $2.20 billion revolving credit agreement and a $2.15 billion multicurrency revolving credit agreement, both of which expire in August 2021. As of September 30, 2018, there were no borrowings under either of these agreements. The undrawn portions of these revolving credit agreements are also available to serve as backup facilities for the issuance of commercial paper. As of September 30, 2018, our maximum commercial paper borrowing limit was $4.35 billion. Commercial paper borrowings at September 30, 2018 include approximately €750 million ($881 million) of euro-denominated commercial paper. We use our commercial paper borrowings for general corporate purposes, including the funding of potential acquisitions, pension contributions, debt refinancing, dividend payments and repurchases of our common stock. The need for commercial paper borrowings arises when the use of domestic cash for general corporate purposes exceeds the sum of domestic cash generation and foreign cash repatriated to the U.S.

On August 16, 2018, we issued $1.0 billion aggregate principal amount of 3.350% notes due 2021, $2.25 billion aggregate principal amount of 3.650% notes due 2023, $1.5 billion aggregate principal amount of 3.950% notes due 2025, $3.0 billion aggregate principal amount of 4.125% notes due 2028, $750 million aggregate principal amount of 4.450% notes due 2038, $1.75 billion aggregate principal amount of 4.625% notes due 2048, and $750 million aggregate principal amount of floating rate notes due 2021. The net proceeds received from the issuance of the notes due 2021, notes due 2023, notes due 2025, notes due 2028, notes due 2038 and the floating rate notes due 2021 are specifically designated to finance payment obligations with respect to the cash consideration and related fees, expenses and other amounts in connection with the acquisition of Rockwell Collins. If either the acquisition of Rockwell Collins does not occur on or before July 15, 2019 or we notify the trustee that we will not pursue the acquisition of Rockwell Collins, we will be required to redeem the mandatorily redeemable notes then outstanding at a redemption price equal to 101% of the principal amount of such notes plus accrued and unpaid interest (the special mandatory redemption).

We expect to use the proceeds of the notes due 2048 for general corporate purposes which may include the repayment of debt, including outstanding commercial paper. The notes due 2048 are not subject to the special mandatory redemption.

On May 18, 2018, we issued €750 million aggregate principal amount of 1.150% notes due 2024, €500 million aggregate principal amount of 2.150% notes maturing 2030 and €750 million aggregate principal amount of floating rate notes maturing 2020. The net proceeds received from these debt issuances were used for general corporate purposes.

On May 4, 2018, we repaid at maturity approximately $1.1 billion aggregate principal amount of 1.778% junior subordinated notes.

On February 1, 2018, we repaid at maturity the $99 million 6.80% notes and on February 22, 2018, we repaid at maturity the €750 million EURIBOR plus 0.80% floating rate notes.

In connection with the merger agreement with Rockwell Collins announced on September 4, 2017, we entered into a $6.5 billion 364-day unsecured bridge loan credit agreement that would have been funded only to the extent certain anticipated debt issuances were not completed prior to the completion of the merger. This unsecured bridge loan credit agreement was terminated on August 16, 2018 upon issuance of the $11 billion of aggregate principal notes described above. See Note 1 for additional discussion.

Long-term debt consisted of the following:



(dollars in millions)	September 30, 2018		December 31, 2017
6.800% notes due 2018	$	—	$	99
EURIBOR plus 0.800% floating rate notes due 2018 (€750 million principal value) ²	—		890
1.778% junior subordinated notes due 2018	—		1,100
LIBOR plus 0.350% floating rate notes due 2019 ³	350		350
1.500% notes due 2019 ¹	650		650
EURIBOR plus 0.15% floating rate notes due 2019 (€750 million principal value) ²	881		890
8.875% notes due 2019	271		271
4.875% notes due 2020 ¹	171		171
4.500% notes due 2020 ¹	1,250		1,250
1.900% notes due 2020 ¹	1,000		1,000
EURIBOR plus 0.20% floating rate notes due 2020 (€750 million principal value) ²	881		—
8.750% notes due 2021	250		250
3.350% notes due 2021¹	1,000		—
LIBOR plus 0.650% floating rate notes due 2021 ^1,3	750		—
1.950% notes due 2021 ¹	750		750
1.125% notes due 2021 (€950 million principal value) ¹	1,117		1,127
2.300% notes due 2022 ¹	500		500
3.100% notes due 2022 ¹	2,300		2,300
1.250% notes due 2023 (€750 million principal value) ¹	881		890
3.650% notes due 2023 ¹	2,250		—
2.800% notes due 2024 ¹	800		800
1.150% notes due 2024 (€750 million principal value) ¹	881		—
3.950% notes due 2025 ¹	1,500		—
1.875% notes due 2026 (€500 million principal value) ¹	588		593
2.650% notes due 2026 ¹	1,150		1,150
3.125% notes due 2027 ¹	1,100		1,100
7.100% notes due 2027	141		141
6.700% notes due 2028	400		400
4.125% notes due 2028 ¹	3,000		—
7.500% notes due 2029 ¹	550		550
2.150% notes due 2030 (€500 million principal value) ¹	588		—
5.400% notes due 2035 ¹	600		600



6.050% notes due 2036 ¹	600			600
6.800% notes due 2036 ¹	134			134
7.000% notes due 2038	159			159
6.125% notes due 2038 ¹	1,000			1,000
4.450% notes due 2038 ¹	750			—
5.700% notes due 2040 ¹	1,000			1,000
4.500% notes due 2042 ¹	3,500			3,500
4.150% notes due 2045 ¹	850			850
3.750% notes due 2046 ¹	1,100			1,100
4.050% notes due 2047 ¹	600			600
4.625% notes due 2048 ¹	1,750			—
Project financing obligations	250			158
Other (including capitalized leases)	230			195
Total principal long-term debt	38,473			27,118
Other (fair market value adjustments and discounts)	(106		)	(25		)
Total long-term debt	38,367			27,093
Less: current portion	92			2,104
Long-term debt, net of current portion	$	38,275		$	24,989


1	We may redeem these notes at our option pursuant to their terms.


2	The three-month EURIBOR rate as of September 30, 2018 was approximately -0.318%. The notes may be redeemed at our option in whole, but not in part, at any time in the event of certain developments affecting U.S. taxation.


3	The three-month LIBOR rate as of September 30, 2018 was approximately 2.398%.

The average maturity of our long-term debt at September 30, 2018 is approximately 11 years. The average interest expense rate on our total borrowings for the quarter and nine months ended September 30, 2018 and 2017 were as follows:



	Quarter Ended September 30,				Nine Months Ended September 30,
	2018		2017		2018		2017
Average interest expense rate	3.6	%	3.6	%	3.5	%	3.6	%

We have an existing universal shelf registration statement filed with the Securities and Exchange Commission (SEC) for an indeterminate amount of equity and debt securities for future issuances, subject to our internal limitations on the amount of equity and debt to be issued under this shelf registration statement.