Meritor Acquisition and 2022 Financial Results
Table of Contents
Other liabilities included the following:
NOTE 13. DEBT
In millions
Accrued product warranty
Deferred income taxes
Pensions
Operating lease liabilities
Long-term income taxes
Accrued compensation
Mark-to-market valuation on interest rate derivatives
Other postretirement benefits
Other long-term liabilities
Other liabilities
December 31,
2022
2021
$
744 $
684
649
403
445
431
368
326
192
263
184
177
151
19
141
173
437
320
$
3,311 $
2,796
Loans Payable
Loans payable at December 31, 2022 and 2021 were $210 million and $208 million, respectively, and consisted primarily of notes payable to financial institutions.The
weighted-average interest rate for notes payable, bank overdrafts and current maturities of long-term debt at December 31 was as follows:
Commercial Paper
Weighted-average interest rate
2022
4.02 %
2021
2.71 %
We can issue up to $4.0 billion of unsecured, short-term promissory notes (commercial paper) pursuant to the Board of Directors (the Board) authorized commercial paper
programs. The programs facilitate the private placement of unsecured short-term debt through third-party brokers. We intend to use the net proceeds from the commercial paper
borrowings for acquisitions and general corporate purposes. We had $2.6 billion and $313 million in outstanding borrowings under our commercial paper programs at
December 31, 2022 and 2021, respectively. The weighted-average interest rate for commercial paper at December 31 was as follows:
Weighted-average interest rate
2022
2021
4.27% (1)
(0.01)% (2)
(1) The weighted-average interest rate, inclusive of all brokerage fees, was 4.27 percent at December 31, 2022. This
included $107 million of borrowings under the Europe program at a weighted-average interest rate of 1.86 percent
and $2.5 billion of borrowings under the U.S. program at a weighted-average interest rate of 4.38 percent.
(2) The weighted-average interest rate, inclusive of all brokerage fees, was negative 0.01 percent at December 31,
2021. This included $113 million of borrowings under the Europe program that were at a negative weighted-
average interest rate of 0.39 percent and $200 million of borrowings under the U.S. program at a weighted-average
interest rate of 0.21 percent.
Revolving Credit Facilities
On August 17, 2022, we entered into an amended and restated364-day credit agreement, which allows us to borrow up to $1.5 billion of unsecured funds at any time prior to
August 16, 2023. This credit agreement amended and restated the prior $1.5 billion 364-day credit facility that matured on August 17, 2022. On August 17, 2022, we also
entered into an incremental 364-day credit agreement, which allows us to borrow up to $500 million of unsecured funds at any time prior to August 16, 2023.
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