Debt

The Company’s outstanding debt is as follows:



(In millions)	September 30, 2018		December 31, 2017
Short-term:
Commercial paper	$	75	$	—
Current portion of long-term debt	563		262
	638		262
Long-term:
Senior notes – 2.55% due 2018 ^(a)	250		250
Senior notes – 2.35% due 2019	300		299
Senior notes – 2.35% due 2020	499		498
Senior notes – 4.80% due 2021	499		498
Senior notes – 2.75% due 2022	497		496
Senior notes – 3.30% due 2023	348		348
Senior notes – 4.05% due 2023	248		248
Senior notes – 3.50% due 2024	597		596
Senior notes – 3.50% due 2025	496		496
Senior notes – 3.75% due 2026	596		596
Senior notes – 5.875% due 2033	298		297
Senior notes – 4.35% due 2047	492		492
Senior notes – 4.20% due 2048	592		—
Mortgage – 5.70% due 2035	361		370
Other	2		3
	6,075		5,487
Less current portion	563		262
	$	5,512	$	5,225
(a) Repaid on October 15, 2018.

The senior notes in the table above are registered by the Company with the Securities and Exchange Commission and are not guaranteed.

The Company has established a short-term debt financing program of up to $1.5 billion through the issuance of commercial paper. The proceeds from the issuance of commercial paper are used for general corporate purposes. The Company had $75 million of commercial paper outstanding at September 30, 2018 at an effective interest rate of 2.41%.

On September 18, 2018, the Company entered into a bridge loan agreement to finance the pending JLT acquisition. The bridge loan agreement provides for commitments in the aggregate principal amount of £5.2 billion. Under the bridge loan agreement, any loans will mature 364 days from the date of the first borrowing, and the Company will be required to comply with certain covenants including maintaining an interest coverage ratio and leverage ratio within specified levels. The Company paid approximately $24 million of customary upfront fees related to the bridge loan at the inception of the loan commitment, of which $3 million was amortized as interest expense based on the period of time the facility is expected to be in effect (including any loans outstanding). Any borrowings under the bridge loan agreement will accrue interest at an annual rate based on the London Interbank Offered Rate for British pounds sterling, plus an applicable margin based on the Company’s debt ratings and also increasing over time while loans are outstanding. The Company will also be required to pay a duration fee in an amount equal to 50, 75 and 100 basis points on the principal amount of loans, if any, outstanding on the 90^th, 180^th and 270^th day, respectively, after the closing date of the facility, as well as an "unused fee" accruing on the available but unused commitments at a rate that varies with the Company’s debt ratings. Unused commitments will be reduced, and loans under the bridge loan agreement prepaid, with the proceeds of certain debt or equity issuances or asset sales. There were no borrowings under the bridge loan agreement at September 30, 2018. The commitments under the bridge loan agreement are expected to be reduced, and any loans thereunder refinanced, with long-term financing.

In March 2018, the Company issued $600 million of 4.20% senior notes due 2048. The Company used the net proceeds for general corporate purposes.

In January 2017, the Company issued $500 million of 2.75% senior notes due 2022 and $500 million of 4.35% senior notes due 2047. The Company used the net proceeds for general corporate purposes, including the repayment of a $250 million debt maturity in April 2017.

In October 2018, the Company and certain of its foreign subsidiaries increased its multi-currency five-year unsecured revolving credit facility from $1.5 billion to $1.8 billion. The interest rate on this facility is based on LIBOR plus a fixed margin which varies with the Company's credit ratings. This facility expires in October 2023 and requires the Company to maintain certain coverage and leverage ratios which are tested quarterly. There were no borrowings outstanding under this facility at September 30, 2018.

Fair Value of Short-term and Long-term Debt

The estimated fair value of the Company’s short-term and long-term debt is provided below. Certain estimates and judgments were required to develop the fair value amounts. The fair value amounts shown below are not necessarily indicative of the amounts that the Company would realize upon disposition, nor do they indicate the Company’s intent or need to dispose of the financial instrument.



	September 30, 2018				December 31, 2017
(In millions)	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Short-term debt	$	638	$	637	$	262	$	264
Long-term debt	$	5,512	$	5,477	$	5,225	$	5,444

The fair value of the Company’s short-term debt consists primarily of commercial paper and term debt maturing within the next year and its fair value approximates its carrying value. The estimated fair value of a primary portion of the Company's long-term debt is based on discounted future cash flows using current interest rates available for debt with similar terms and remaining maturities. Short- and long-term debt is classified as Level 2 in the fair value hierarchy.