Quarterly report [Sections 13 or 15(d)]

DEBT AND FINANCING ARRANGEMENTS

v3.26.3
DEBT AND FINANCING ARRANGEMENTS
 9 Months Ended
Sep. 30, 2026
Debt Disclosure [Abstract]  
DEBT AND FINANCING ARRANGEMENTS DEBT AND FINANCING ARRANGEMENTS
The carrying value of our outstanding debt obligations as of September 30, 2026 and December 31, 2025 consisted of the following (in millions):
Principal
Amount		 Carrying Value
Maturity 2026 2025
Fixed-rate senior notes:
2.400% senior notes
 $ 500  2026 $ 500  $ 500 
3.050% senior notes
 1,000  2027 999  998 
3.400% senior notes
 750  2029 749  748 
2.500% senior notes
 400  2029 399  399 
4.450% senior notes
 750  2030 747  747 
4.650% senior notes
 500  2030 498  498 
4.850% senior notes
 1,000  2031 996  — 
4.875% senior notes
 900  2033 896  896 
5.150% senior notes
 900  2034 894  894 
5.250% senior notes
 1,250  2035 1,240  1,240 
6.200% senior notes
 1,500  2038 1,487  1,487 
5.200% senior notes
 500  2040 495  495 
4.875% senior notes
 500  2040 492  492 
3.625% senior notes
 375  2042 369  369 
3.400% senior notes
 500  2046 493  493 
3.750% senior notes
 1,150  2047 1,139  1,138 
4.250% senior notes
 750  2049 744  744 
3.400% senior notes
 700  2049 689  689 
5.300% senior notes
 1,250  2050 1,233  1,232 
5.050% senior notes
 1,100  2053 1,084  1,083 
5.500% senior notes
 1,100  2054 1,087  1,087 
5.950% senior notes
 1,250  2055 1,232  1,232 
5.600% senior notes
 600  2064 590  590 
6.050% senior notes
 1,000  2065 985  985 
Floating-rate senior notes:
Floating-rate senior notes 2,205  2049-2076 2,180  1,863 
Debentures:
7.620% debentures
 276  2030 278  279 
Pound Sterling notes:
5.500% notes
 88  2031 88  89 
5.125% notes
 602  2050 573  585 
Euro senior notes:
1.000% senior notes
 568  2028 568  587 
1.500% senior notes
 568  2032 566  586 
Finance lease obligations
 1,467  2026-2118 1,467  781 
Facility notes, bonds and other
 322  2026-2045 321  321 
Total debt $ 26,321  $ 26,078  $ 24,127 
Less: current maturities (957) (608)
Long-term debt $ 25,121  $ 23,519 
    
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 September 30, 2026 or December 31, 2025. The amount of commercial paper outstanding under these programs in the remainder of 2026 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.
Debt Issuances
On August 12, 2026, we issued fixed-rate senior notes with a principal balance of $1.0 billion. The notes bear interest at 4.850% per year and mature on August 15, 2031. Interest on the notes is payable semi-annually, beginning February 15, 2027. The notes are callable at our option at a redemption price equal to the greater of 100% of the principal amount, or the sum of the present values of the remaining scheduled payments of principal and interest, plus accrued and unpaid interest. In connection with this issuance, we contributed $450 million principal amount of the notes directly to our company-sponsored pension plans. For additional information, see note 6.

On August 18, 2026, we issued floating rate senior notes with a principal balance of $325 million. These notes bear interest at a rate equal to the compounded Secured Overnight Financing Rate ("SOFR") less 0.350% per year and mature on September 1, 2076. Interest on the notes is payable quarterly, beginning December 1, 2026. These notes are callable at various times after 30 years at a stated percentage of par value and are redeemable at the option of the note holders at various times after one year at a stated percentage of par value.

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, expires on November 23, 2026 and bears interest at a periodic fixed rate equal to the term SOFR rate, plus an applicable margin based on our then-current credit rating. The second agreement provides revolving credit facilities of $2.0 billion, expires on November 25, 2029 and bears 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 for both agreements as of September 30, 2026 was 0.70%.
There were no amounts outstanding under these facilities as of September 30, 2026 or December 31, 2025. We expect to be able to renew these agreements in the ordinary course of business prior to their respective maturities. For further discussion see note 9 to the audited consolidated financial statements in our Annual Report on Form 10-K for the year ended December 31, 2025.
Debt Covenants
Our existing debt instruments and credit facilities subject us to certain 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. We were in compliance with these financial covenants for all periods presented.
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, excluding leases, was approximately $22.4 and $22.8 billion as of September 30, 2026 and December 31, 2025, 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.
Other Arrangements
During the nine months ended September 30, 2026, we entered into nine new aircraft leases under an existing financing arrangement. The structure of this arrangement required parent company guarantees of approximately $1.8 billion.
In 2025 we entered into a real estate transaction for the development of a facility and recognized a financing obligation, which will continue to increase as construction progresses. As of September 30, 2026 and December 31, 2025 we recognized $230 and $132 million, respectively, related to this obligation within Other Non-Current Liabilities in our consolidated balance sheets