Debt

3 Months Ended

Mar. 31, 2024

Debt Disclosure [Abstract]

Debt

Debt

The Company’s outstanding debt is as follows:

(In millions)	March 31, 2024		December 31, 2023
Short-term:
Commercial paper	$	50	$	—
Current portion of long-term debt	1,119		1,619
	$	1,169	$	1,619
Long-term:
Senior notes – 3.50% due 2024	$	600	$	600
Senior notes – 3.875% due 2024	—		1,000
Senior notes – 3.50% due 2025	499		499
Senior notes – 1.349% due 2026	601		617
Senior notes – 3.75% due 2026	599		599
Senior notes – 4.375% due 2029	1,499		1,499
Senior notes – 1.979% due 2030	587		601
Senior notes – 2.25% due 2030	742		741
Senior notes – 2.375% due 2031	397		397
Senior notes – 5.750% due 2032	493		493
Senior notes – 5.875% due 2033	298		298
Senior notes – 5.400% due 2033	592		592
Senior notes – 5.150% due 2034	496		—
Senior notes – 4.75% due 2039	496		496
Senior notes – 4.35% due 2047	494		494
Senior notes – 4.20% due 2048	593		593
Senior notes – 4.90% due 2049	1,239		1,239
Senior notes – 2.90% due 2051	346		346
Senior notes – 6.25% due 2052	491		491
Senior notes – 5.450% due 2053	591		591
Senior notes – 5.700% due 2053	988		988
Senior notes – 5.450% due 2054	494		—
Mortgage – 5.70% due 2035	280		284
Other	4		5
	13,419		13,463
Less: current portion	1,119		1,619
	$	12,300	$	11,844

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

In November 2023, the Company increased its short-term commercial paper financing program (the "Program") to $3.5 billion from $2.8 billion. The Company had previously increased the Program's capacity in October 2022 to $2.8 billion from $2.0 billion.

The Company had $50 million of commercial paper outstanding at March 31, 2024, at an average effective interest rate of 5.450%. The Company had no commercial paper outstanding at December 31, 2023.

Credit Facilities

In October 2023, the Company increased its multi-currency unsecured five-year credit facility (the "Credit Facility") capacity to $3.5 billion from $2.8 billion and extended the expiration to October 2028. 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 that borrowings under the Credit Facility bear interest at a rate per annum, equal, at the Company'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 Company is required to maintain certain coverage and leverage ratios for the Credit Facility, which are evaluated 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. At March 31, 2024 and December 31, 2023, the Company had no borrowings under this facility.

In October 2023, the Company terminated its one-year uncommitted revolving credit facility ("Uncommitted Credit Facility"). At March 31, 2023, the Company had $250 million borrowings outstanding under this facility with a weighted average interest rate of 5.19%.

The Company also maintains other credit and overdraft facilities with various financial institutions aggregating $114 million and $113 million, at March 31, 2024 and December 31, 2023, respectively. There were no outstanding borrowings under these facilities at March 31, 2024 and December 31, 2023.

The Company also has outstanding guarantees and letters of credit with various banks aggregating $128 million and $139 million, at March 31, 2024 and December 31, 2023, respectively.

Senior Notes

In March 2024, the Company repaid $1 billion of 3.875% senior notes at maturity.

In February 2024, the Company issued $500 million of 5.150% senior notes due 2034 and $500 million of 5.450% senior notes due 2054. The Company intends to use the net proceeds from these issuances for general corporate purposes.

In October 2023, the Company repaid $250 million of 4.05% senior notes at maturity.

In September 2023, the Company issued $600 million of 5.400% senior notes due 2033 and $1 billion of 5.700% senior notes due 2053. In March 2023, the Company issued $600 million of 5.450% senior notes due 2053. The Company used the net proceeds from this issuance for general corporate purposes.

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.

	March 31, 2024				December 31, 2023
(In millions)	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Short-term debt	$	1,169	$	1,159	$	1,619	$	1,610
Long-term debt	$	12,300	$	11,915	$	11,844	$	11,723

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-term and long-term debt would be classified as Level 2 in the fair value hierarchy.