Debt Obligations

The following table summarizes the Company’s debt obligations:



	2017^(a)			2016^(a)
Short-term debt obligations^(b)
Current maturities of long-term debt	$	4,020		$	4,401
Commercial paper (1.3% and 0.6%)	1,385			2,257
Other borrowings (4.7% and 4.4%)	80			234
	$	5,485		$	6,892
Long-term debt obligations ^(b)
Notes due 2017 (1.4%)	$	—		$	4,398
Notes due 2018 (2.4% and 2.3%)	4,016			2,561
Notes due 2019 (2.1% and 1.7%)	3,933			2,837
Notes due 2020 (3.1% and 2.6%)	3,792			3,816
Notes due 2021 (2.4% and 2.4%)	3,300			2,249
Notes due 2022 (2.6% and 2.8%)	3,853			2,655
Notes due 2023-2047 (3.7% and 3.8%)	18,891			15,903
Other, due 2017-2026 (1.3% and 1.4%)	31			35
	37,816			34,454
Less: current maturities of long-term debt obligations	(4,020		)	(4,401		)
Total	$	33,796		$	30,053


(a)	Amounts are shown net of unamortized net discounts of $155 million and $142 million for 2017 and 2016, 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 2017, we issued the following senior notes:



Interest Rate		Maturity Date	Amount^(a)
Floating rate		May 2019	$	350
Floating rate		May 2022	$	400
1.550	%	May 2019	$	750
2.250	%	May 2022	$	750
4.000	%	May 2047	$	750
2.150	%	May 2024	C$	750	^(b)
Floating rate		October 2018	$	1,500
2.000	%	April 2021	$	1,000
3.000	%	October 2027	$	1,500


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


(b)	These notes, issued in Canadian dollars, 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.

In 2017, we entered into a new five-year unsecured revolving credit agreement (Five-Year Credit Agreement) which expires on June 5, 2022. The Five-Year Credit Agreement enables us and our borrowing subsidiaries to borrow up to $3.75 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 2017, we entered into a new 364-day unsecured revolving credit agreement (364-Day Credit Agreement) which expires on June 4, 2018. The 364-Day Credit Agreement enables us and our borrowing subsidiaries to borrow up to $3.75 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 and our $3.7225 billion 364-day credit agreement both dated as of June 6, 2016. 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 30, 2017, there were no outstanding borrowings under the Five-Year Credit Agreement or the 364-Day Credit Agreement.

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 addition, as of December 30, 2017, our international debt of $73 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.