Borrowings

3 Months Ended

Mar. 31, 2020

The following table is a summary of the Company’s borrowings at March 31, 2020 and December 31, 2019:



In millions	March 31, 2020			December 31, 2019
Short-term debt
Commercial paper	$	255		$	—
Long-term debt
3.125% senior notes due March 2020	—			723
Floating rate notes due March 2020 (2.515% at December 31, 2019)	—			277
2.8% senior notes due July 2020	2,750			2,750
3.35% senior notes due March 2021	2,038			2,038
Floating rate notes due March 2021 (1.719% at March 31, 2020 and 2.605% at December 31, 2019)	1,000			1,000
4.125% senior notes due May 2021	222			222
2.125% senior notes due June 2021	1,750			1,750
4.125% senior notes due June 2021	203			203
5.45% senior notes due June 2021	187			187
3.5% senior notes due July 2022	1,500			1,500
2.75% senior notes due November 2022	1,000			1,000
2.75% senior notes due December 2022	1,250			1,250
4.75% senior notes due December 2022	399			399
3.7% senior notes due March 2023	6,000			6,000
2.8% senior notes due June 2023	1,300			1,300
4% senior notes due December 2023	1,250			1,250
2.625% senior notes due August 2024	1,000			1,000
3.375% senior notes due August 2024	650			650
3.5% senior notes due November 2024	750			750
5% senior notes due December 2024	299			299
4.1% senior notes due March 2025	5,000			5,000
3.875% senior notes due July 2025	2,828			2,828
2.875% senior notes due June 2026	1,750			1,750
3% senior notes due August 2026	750			750
3.625% senior notes due April 2027	750			—
6.25% senior notes due June 2027	372			372
4.3% senior notes due March 2028	9,000			9,000
3.25% senior notes due August 2029	1,750			1,750
3.75% senior notes due April 2030	1,500			—
4.875% senior notes due July 2035	652			652
6.625% senior notes due June 2036	771			771
6.75% senior notes due December 2037	533			533
4.78% senior notes due March 2038	5,000			5,000
6.125% senior notes due September 2039	447			447
4.125% senior notes due April 2040	1,000			—
5.75% senior notes due May 2041	133			133
4.5% senior notes due May 2042	500			500
4.125% senior notes due November 2042	500			500
5.3% senior notes due December 2043	750			750
4.75% senior notes due March 2044	375			375
5.125% senior notes due July 2045	3,500			3,500
3.875% senior notes due August 2047	1,000			1,000
5.05% senior notes due March 2048	8,000			8,000
4.25% senior notes due April 2050	750			—
Finance lease obligations	919			808
Other	279			279
Total debt principal	72,612			69,246
Debt premiums	256			262
Debt discounts and deferred financing costs	(1,050		)	(1,028		)
	71,818			68,480
Less:
Short-term debt (commercial paper)	(255		)	—
Current portion of long-term debt	(5,828		)	(3,781		)
Long-term debt	$	65,735		$	64,699

Long-term Borrowings

2020 Notes

On March 31, 2020, the Company issued $750 million aggregate principal amount of 3.625% unsecured senior notes due April 1, 2027, $1.5 billion aggregate principal amount of 3.75% unsecured senior notes due April 1, 2030, $1.0 billion aggregate principal amount of 4.125% unsecured senior notes due April 1, 2040 and $750 million aggregate principal amount of 4.25% unsecured senior notes due April 1, 2050 (collectively, the “2020 Notes”) for total proceeds of approximately $3.95 billion, net of discounts and underwriting fees. The net proceeds of the 2020 Notes will be used for general corporate purposes, which may include working capital, capital expenditures and repayment of indebtedness. As the net proceeds from this offering were not immediately used for these purposes, the net proceeds were held in cash or temporarily invested in cash equivalents and short-term investment-grade securities as of March 31, 2020.

During March 2020, the Company entered into several interest rate swap transactions to manage interest rate risk. These agreements were designated as cash flow hedges and were used to hedge the exposure to variability in future cash flows resulting from changes in interest rates related to the anticipated issuance of the 2020 Notes. In connection with the issuance of the 2020 Notes, the Company terminated all outstanding cash flow hedges. The Company paid a net amount of $7 million to the hedge counterparties upon termination, which was recorded as a loss, net of tax, of $5 million in accumulated other comprehensive income and will be reclassified as interest expense over the life of the 2020 Notes. See Note 7 ‘‘Other Comprehensive Income’’ for additional information.