XML 211 R21.htm IDEA: XBRL DOCUMENT v3.23.2
Debt
 6 Months Ended
Jun. 30, 2023
Debt Disclosure [Abstract]  
Debt Debt
The Company’s outstanding debt is as follows:
(In millions)June 30,
2023		December 31, 2022
Short-term:
Commercial paper$308 $— 
Revolving credit facility200 — 
Current portion of long-term debt1,867 268 
$2,375 $268 
Long-term:
Senior notes – 4.05% due 2023
$250 $250 
Senior notes – 3.50% due 2024
600 599 
Senior notes – 3.875% due 2024
999 998 
Senior notes – 3.50% due 2025
499 499 
Senior notes – 1.349% due 2026
604 587 
Senior notes – 3.75% due 2026
599 598 
Senior notes – 4.375% due 2029
1,499 1,499 
Senior notes – 1.979% due 2030
593 576 
Senior notes – 2.25% due 2030
740 739 
Senior notes – 2.375% due 2031
397 397 
Senior notes – 5.750% due 2032
492 493 
Senior notes – 5.875% due 2033
298 298 
Senior notes – 4.75% due 2039
495 495 
Senior notes – 4.35% due 2047
493 493 
Senior notes – 4.20% due 2048
593 593 
Senior notes – 4.90% due 2049
1,238 1,238 
Senior notes – 2.90% due 2051
346 346 
Senior notes – 6.25% due 2052
491 492 
Senior notes – 5.45% due 2053
591 — 
Mortgage – 5.70% due 2035
293 301 
Other4 4 
$12,114 $11,495 
Less: current portion1,867 268 
 $10,247 $11,227 
The senior notes in the table are registered by the Company with the Securities and Exchange Commission and are not guaranteed.
The Company has a short-term commercial paper financing program of $2.8 billion. The program was increased from $2.0 billion in October 2022. The Company had $308 million of commercial paper outstanding at June 30, 2023, at an average effective interest rate of 5.33%.
Credit Facilities
The Company has a multi-currency unsecured $2.8 billion five-year revolving credit facility (the "Credit Facility") entered into on April 1, 2021. The interest rate on the Credit Facility was initially based on LIBOR plus a fixed margin which varied with the Company's credit rating. In the second quarter of 2023, the Credit Facility was amended so that borrowings under the Credit Facility bear interest at a rate per annum equal, at the borrower's option, either at (a) SOFR benchmark rate for U.S. dollar borrowings, or (b) a currency specific benchmark rate, plus an applicable margin which varies with the Company's credit ratings. The Credit Facility expires in April 2026 and requires the Company to maintain certain coverage and leverage ratios which are tested quarterly.
The Credit Facility includes provisions for determining a benchmark replacement rate in the event existing benchmark rates are no longer available or in certain other circumstances in which an alternative rate may be required. As of June 30, 2023 and December 31, 2022, the Company had no borrowings under this facility.
In connection with the Credit Facility, the Company terminated its previous multi-currency unsecured $1.8 billion five-year and its unsecured $1 billion 364-day revolving credit facilities.
In May 2022, the Company secured a one-year $250 million uncommitted revolving credit facility with similar coverage and leverage ratios as the Credit Facility. In May 2023, the Company extended the facility until May 2024, at a reduced capacity of $200 million. At June 30, 2023, the Company had $200 million borrowings outstanding under this facility with a weighted average interest rate of 5.50%. There were no borrowings outstanding under this facility at December 31, 2022.
The Company also maintains other credit and overdraft facilities with various financial institutions aggregating $112 million at June 30, 2023. There were no outstanding borrowings under these facilities at June 30, 2023 and December 31, 2022. The Company also has outstanding guarantees and letters of credit with various banks aggregating $118 million at June 30, 2023.
Senior Notes
In March 2023, the Company issued $600 million of 5.45% senior notes due 2053. The Company used the net proceeds from this issuance for general corporate purposes.
In October 2022, the Company issued $500 million of 5.75% senior notes due 2032 and $500 million of 6.25% senior notes due 2052. The Company used the net proceeds from these issuances for general corporate purposes and repaid $350 million of 3.30% senior notes in November 2022, with an original maturity date of March 2023.
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.
June 30, 2023December 31, 2022
(In millions)Carrying
Amount		Fair
Value		Carrying
Amount		Fair
Value
Short-term debt$2,375 $2,350 $268 $265 
Long-term debt$10,247 $9,673 $11,227 $10,544 
The fair value of the Company's short-term debt consists of commercial paper, borrowings under the uncommitted credit facility, 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-term and long-term debt would be classified as Level 2 in the fair value hierarchy.