Debt Obligations

The following table summarizes the Company’s debt obligations:



	2016^(a)			2015^(a)
Short-term debt obligations^(b)
Current maturities of long-term debt	$	4,401		$	3,109
Commercial paper (0.6% and 0.3%)	2,257			770
Other borrowings (4.4% and 10.0%)	234			192
	$	6,892		$	4,071
Long-term debt obligations ^(b)
Notes due 2016 (2.6%)	$	—		$	3,087
Notes due 2017 (1.4% and 1.2%)	4,398			4,392
Notes due 2018 (2.3% and 3.6%)	2,561			4,122
Notes due 2019 (1.7% and 3.7%)	2,837			1,627
Notes due 2020 (2.6% and 2.4%)	3,816			3,830
Notes due 2021 (2.4% and 3.0%)	2,249			1,290
Notes due 2022-2046 (3.7% and 3.9%)	18,558			13,938
Other, due 2017-2026 (1.4% and 4.3%)	35			36
	34,454			32,322
Less: current maturities of long-term debt obligations	(4,401		)	(3,109		)
Total	$	30,053		$	29,213


(a)	Amounts are shown net of unamortized net discounts of $142 million and $162 million for 2016 and 2015, respectively.


(b)	The interest rates presented reflect weighted-average rates at year-end. Certain of our fixed rate indebtedness have been swapped to floating rates through the use of interest rate derivative instruments. See Note 9 for additional information regarding our interest rate derivative instruments.

In 2016, we issued the following senior notes:



Interest Rate		Maturity Date	Amount^(a)
Floating rate		February 2019	$	400
1.500	%	February 2019	$	600
2.850	%	February 2026	$	750
4.450	%	April 2046	$	750
0.875	%	July 2028	€	750	^(b)
Floating rate		October 2019	$	250
Floating rate		October 2021	$	250
1.350	%	October 2019	$	750
1.700	%	October 2021	$	750
2.375	%	October 2026	$	1,000
3.450	%	October 2046	$	1,500


(a)	Represents gross proceeds from issuances of long-term debt excluding debt issuance costs, discounts and premiums.


(b)	These notes were designated as a net investment hedge to partially offset the effects of foreign currency on our investments in certain of our foreign subsidiaries.

The net proceeds from the issuances of the above notes were used for general corporate purposes, including the repayment of commercial paper, and the redemption of certain long-term debt obligations.

In 2016, we paid $2.5 billion to redeem all of our outstanding 7.900% senior notes due 2018 and 5.125% senior notes due 2019 for the principal amounts of $1.5 billion and $750 million, respectively, and terminated certain interest rate swaps. As a result, we recorded a pre-tax charge of $233 million ($156 million after-tax or $0.11 per share) to interest expense, primarily representing the premium paid in accordance with the “make-whole” redemption provisions. See further unaudited information in “Items Affecting Comparability” in Management’s Discussion and Analysis of Financial Condition and Results of Operations.

In 2016, we entered into a new five-year unsecured revolving credit agreement (Five-Year Credit Agreement) which expires on June 6, 2021. The Five-Year Credit Agreement enables us and our borrowing subsidiaries to borrow up to $3.7225 billion, subject to customary terms and conditions. We may request that commitments under this agreement be increased up to $4.5 billion. Additionally, we may, once a year, request renewal of the agreement for an additional one-year period.

Also in 2016, we entered into a new 364-day unsecured revolving credit agreement (364-Day Credit Agreement) which expires on June 5, 2017. The 364-Day Credit Agreement enables us and our borrowing subsidiaries to borrow up to $3.7225 billion, subject to customary terms and conditions. We may request that commitments under this agreement be increased up to $4.5 billion. We may request renewal of this facility for an additional 364-day period or convert any amounts outstanding into a term loan for a period of up to one year, which would mature no later than the anniversary of the then effective termination date. The Five-Year Credit Agreement and the 364-Day Credit Agreement together replaced our $3.7225 billion five-year credit agreement dated as of June 8, 2015 and our $3.7225 billion 364-day credit agreement dated as of June 8, 2015. Funds borrowed under the Five-Year Credit Agreement and the 364-Day Credit Agreement may be used for general corporate purposes. Subject to certain conditions, we may borrow, prepay and reborrow amounts under these agreements. As of December 31, 2016, there were no outstanding borrowings under the Five-Year Credit Agreement or the 364-Day Credit Agreement.

In addition, as of December 31, 2016, our international debt of $235 million was related to borrowings from external parties including various lines of credit. These lines of credit are subject to normal banking terms and conditions and are fully committed at least to the extent of our borrowings.

See “Our Liquidity and Capital Resources” in Management’s Discussion and Analysis of Financial Condition and Results of Operations for further unaudited information on our borrowings and long-term contractual commitments.