Debt

3 Months Ended

Mar. 31, 2020

Debt Disclosure [Abstract]

Debt

6) DEBT

Our debt consists of the following:

	At			At
	March 31, 2020			December 31, 2019
Commercial paper		$	312		$	699
Short-term bank borrowings		200			—
4.30% Senior Notes due 2021		300			300
4.50% Senior Notes due 2021		499			499
3.875% Senior Notes due 2021		598			597
2.250% Senior Notes due 2022		49			49
3.375% Senior Notes due 2022		698			698
3.125% Senior Notes due 2022		194			194
2.50% Senior Notes due 2023		398			398
3.25% Senior Notes due 2023		181			181
2.90% Senior Notes due 2023		397			396
4.25% Senior Notes due 2023		1,242			1,242
7.875% Debentures due 2023		187			187
7.125% Senior Notes due 2023		46			46
3.875% Senior Notes due 2024		489			489
3.70% Senior Notes due 2024		598			598
3.50% Senior Notes due 2025		592			592
4.00% Senior Notes due 2026		789			789
3.45% Senior Notes due 2026		123			123
2.90% Senior Notes due 2027		688			688
3.375% Senior Notes due 2028		494			494
3.70% Senior Notes due 2028		491			491
4.20% Senior Notes due 2029		493			493
7.875% Senior Debentures due 2030		831			831
5.50% Senior Debentures due 2033		426			426
4.85% Senior Debentures due 2034		87			87
6.875% Senior Debentures due 2036		1,069			1,068
6.75% Senior Debentures due 2037		75			75
5.90% Senior Notes due 2040		297			297
4.50% Senior Debentures due 2042		45			45
4.85% Senior Notes due 2042		487			486
4.375% Senior Debentures due 2043		1,111			1,109
4.875% Senior Debentures due 2043		18			18
5.850% Senior Debentures due 2043		1,231			1,231
5.25% Senior Debentures due 2044		345			345
4.90% Senior Notes due 2044		539			539
4.60% Senior Notes due 2045		589			589
5.875% Junior Subordinated Debentures due 2057		643			643
6.25% Junior Subordinated Debentures due 2057		643			643
Obligations under finance leases		43			44
Total debt (a)		18,537			18,719
Less commercial paper		312			699
Less short-term bank borrowings		200			—
Less current portion of long-term debt		20			18
Total long-term debt, net of current portion		$	18,005		$	18,002

(a) At March 31, 2020 and December 31, 2019, the senior debt balances included (i) a net unamortized discount of $406 million and $412 million, respectively, (ii) unamortized deferred financing costs of $90 million and $92 million at March 31, 2020 and December 31, 2019, respectively, and (iii) a $6 million decrease in the carrying value of the debt relating to previously settled fair value hedges at both March 31, 2020 and December 31, 2019. The face value of our total debt was $19.04 billion and $19.23 billion at March 31, 2020 and December 31, 2019, respectively.

In April 2020, we issued $1.25 billion of 4.75% senior notes due 2025 and $1.25 billion of 4.95% senior notes due 2031. The net proceeds from this issuance will be used for general corporate purposes, including, but not limited to, repayment of borrowings. Also in April 2020, we announced the full redemption of our $300 million of 4.30% senior notes due February 15, 2021, which were redeemed on May 4, 2020, and the full redemption of our $500 million of 4.50% senior notes due March 1, 2021, which will be redeemed on May 18, 2020. At March 31, 2020, we classified these senior notes of $800 million as long-term debt on the Consolidated Balance Sheet, reflecting our intent and ability to refinance these notes on a long-term basis.

Our 5.875% junior subordinated debentures due February 2057 and 6.25% junior subordinated debentures due February 2057 accrue interest at the stated fixed rates until February 28, 2022 and February 28, 2027, respectively, on which dates the rates will switch to floating rates based on three-month LIBOR plus 3.895% and 3.899%, respectively, reset quarterly. These debentures can be called by us at any time after the expiration of the fixed-rate period.

Commercial Paper

In January 2020, our commercial paper program was increased to $3.50 billion from $2.50 billion in conjunction with the new $3.50 billion revolving credit facility described below. We had outstanding commercial paper borrowings under our commercial paper program of $312 million and $699 million at March 31, 2020 and December 31, 2019, respectively, each with maturities of less than 90 days. The weighted average interest rate for these borrowings was 2.18% and 2.07% at March 31, 2020 and December 31, 2019, respectively.

Credit Facility

In January 2020, the $2.50 billion revolving credit facility held by CBS prior to the Merger (the “CBS Credit Facility”), with a maturity in June 2021, was terminated and the $2.50 billion revolving credit facility held by Viacom prior to the Merger (the “Viacom Credit Facility”), with a maturity in February 2024, was amended and restated to a $3.50 billion revolving credit facility with a maturity in January 2025 (the “Credit Facility”). The Credit Facility is used for general corporate purposes and to support commercial paper outstanding, if any. We may, at our option, also borrow in certain foreign currencies up to specified limits under the Credit Facility. Borrowing rates under the Credit Facility are determined at our option at the time of each borrowing and are based generally on the prime rate in the U.S. or LIBOR plus a margin based on our senior unsecured debt rating. The Credit Facility has one principal financial covenant that requires our Consolidated Total Leverage Ratio to be less than 4.5x (which we may elect to increase to 5.0x for up to four consecutive quarters following a qualified acquisition) at the end of each quarter. The Consolidated Total Leverage Ratio reflects the ratio of our Consolidated Indebtedness at the end of a quarter, to our Consolidated EBITDA (each as defined in the amended credit agreement) for the trailing twelve-month period. We met the covenant as of March 31, 2020.

At March 31, 2020, we had no borrowings outstanding under the Credit Facility and the remaining availability under the Credit Facility, net of outstanding letters of credit, was $3.50 billion.

Short-Term Bank Borrowings

At March 31, 2020, we had $200 million of short-term bank borrowings outstanding under our uncommitted lines of credit with a weighted average interest rate of 2.45%, which were repaid in April 2020.