Quarterly report pursuant to Section 13 or 15(d)

DEBT AND FINANCING ARRANGEMENTS

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DEBT AND FINANCING ARRANGEMENTS
 3 Months Ended
Mar. 31, 2024
Debt Disclosure [Abstract]  
DEBT AND FINANCING ARRANGEMENTS DEBT AND FINANCING ARRANGEMENTS
The carrying value of our outstanding debt obligations as of March 31, 2024 and December 31, 2023 consisted of the following (in millions):
Principal
Amount		 Carrying Value
Maturity 2024 2023
Commercial paper $ —  $ —  $ 2,172 
Fixed-rate senior notes:
2.800% senior notes
 500  2024 500  499 
2.200% senior notes
 400  2024 400  400 
3.900% senior notes
 1,000  2025 999  999 
2.400% senior notes
 500  2026 499  499 
3.050% senior notes
 1,000  2027 996  996 
3.400% senior notes
 750  2029 747  747 
2.500% senior notes
 400  2029 398  398 
4.450% senior notes
 750  2030 745  745 
4.875% senior notes
 900  2033 895  894 
6.200% senior notes
 1,500  2038 1,485  1,485 
5.200% senior notes
 500  2040 494  494 
4.875% senior notes
 500  2040 491  491 
3.625% senior notes
 375  2042 369  369 
3.400% senior notes
 500  2046 492  492 
3.750% senior notes
 1,150  2047 1,138  1,138 
4.250% senior notes
 750  2049 743  743 
3.400% senior notes
 700  2049 689  689 
5.300% senior notes
 1,250  2050 1,232  1,232 
5.050% senior notes
 1,100  2053 1,083  1,083 
Floating-rate senior notes:
Floating-rate senior notes 1,562  2049-2073 1,544  1,545 
Debentures:
7.620% debentures
 276  2030 280  280 
Pound Sterling notes:
5.500% notes
 84  2031 83  84 
5.125% notes
 574  2050 546  550 
Euro senior notes:
1.625% senior notes
 755  2025 754  774 
1.000% senior notes
 539  2028 537  551 
1.500% senior notes
 539  2032 537  551 
Canadian senior notes:
2.125% senior notes
 554  2024 554  566 
Finance lease obligations (see note 10)
 460  2024-2046 460  472 
Facility notes and bonds 320  2029-2045 320  320 
Other debt 3  2024-2025 3  6 
Total debt $ 20,191  20,013  22,264 
Less: current maturities (1,164) (3,348)
Long-term debt $ 18,849  $ 18,916 
Commercial Paper
We are authorized to borrow up to $10.0 billion under a U.S. commercial paper program and €5.0 billion (in a variety of currencies) under a European commercial paper program. There was no commercial paper outstanding as of March 31, 2024. The amount of commercial paper outstanding under these programs in 2024 is expected to fluctuate.
Debt Classification
We have classified certain floating-rate senior notes that are redeemable at the option of the note holder as long-term debt in our consolidated balance sheets, due to our intent and ability to refinance the debt if the put option is exercised. As of March 31, 2024, we continued to classify our 2.200% senior notes with a principal balance of $400 million that mature in September 2024 as long-term debt in our consolidated balance sheet due to our intent and ability to refinance the debt.
Sources of Credit
We maintain two credit agreements with a consortium of banks. The first of these agreements provides revolving credit facilities of $1.0 billion, and expires on December 3, 2024. Amounts outstanding under this agreement bear interest at a periodic fixed rate equal to the term SOFR rate, plus 0.10% per annum and an applicable margin based on our then-current credit rating. The applicable margin from the credit pricing grid as of March 31, 2024 was 0.70%. Alternatively, a fluctuating rate of interest equal to the highest of (1) the rate of interest last quoted by The Wall Street Journal as the prime rate in the United States; (2) the Federal Funds effective rate plus 0.50%; or (3) the Adjusted Term SOFR Rate for a one-month interest period plus 1.00%, may be used at our discretion.
The second agreement provides revolving credit facilities of $2.0 billion, and expires on December 7, 2026. Amounts outstanding under this facility bear interest at a periodic fixed rate equal to the term SOFR rate plus 0.10% per annum and an applicable margin based on our then-current credit rating. The applicable margin from the credit pricing grid as of March 31, 2024 was 0.875%. Alternatively, a fluctuating rate of interest equal to the highest of (1) the rate of interest last quoted by The Wall Street Journal as the prime rate in the United States; (2) the Federal Funds effective rate plus 0.50%; or (3) the Adjusted Term SOFR Rate for a one-month interest period plus 1.00%, plus an applicable margin, may be used at our discretion.
If the credit ratings established by Standard & Poor's and Moody's differ, the higher rating will be used, except in cases where the lower rating is two or more levels lower. In these circumstances, the rating one step below the higher rating will be used. We are also able to request advances under these facilities based on competitive bids for the applicable interest rate.
There were no amounts outstanding under these facilities as of March 31, 2024.
Debt Covenants
Our existing debt instruments and credit facilities subject us to certain financial covenants. As of March 31, 2024, and for all prior periods presented, we have satisfied these financial covenants. These covenants limit the amount of secured indebtedness that we may incur, and limit the amount of attributable debt in sale-leaseback transactions, to 10% of net tangible assets. As of March 31, 2024, 10% of net tangible assets was equivalent to $4.5 billion and we had no covered sale-leaseback transactions or secured indebtedness outstanding. We do not expect these covenants to have a material impact on our liquidity.
Fair Value of Debt    
Based on the borrowing rates currently available to us for long-term debt with similar terms and maturities, the fair value of long-term debt, including current maturities, was approximately $19.4 and $22.1 billion as of March 31, 2024 and December 31, 2023, respectively. We utilized Level 2 inputs in the fair value hierarchy of valuation techniques to determine the fair value of all of our debt instruments.