Proctor and Gamble 2014 Annual Report Download - page 39

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The Procter & Gamble Company 37
its cash needs and the available sources to fund these needs.
The majority of our cash is held off-shore by foreign
subsidiaries, but we do not expect restrictions or taxes on
repatriation of cash held outside of the United States to have
a material effect on our overall liquidity, financial condition
or the results of operations for the foreseeable future. We
utilize short- and long-term debt to fund discretionary items,
such as acquisitions and share repurchases. We have strong
short- and long-term debt ratings, which have enabled and
should continue to enable us to refinance our debt as it
becomes due at favorable rates in commercial paper and
bond markets. In addition, we have agreements with a
diverse group of financial institutions that, if needed, should
provide sufficient credit funding to meet short-term
financing requirements.
On June 30, 2014, our short-term credit ratings were P-1
(Moody's) and A-1+ (Standard & Poor's), while our long-
term credit ratings are Aa3 (Moody's) and AA- (Standard &
Poor's), all with a stable outlook.
We maintain bank credit facilities to support our ongoing
commercial paper program. The current facility is an $11.0
billion facility split between a $7.0 billion 5-year facility and
a $4.0 billion 364-day facility, which expire in August 2018
and July 2015, respectively. The 364-day facility can be
extended for certain periods of time as specified in, and in
accordance with, the terms of the credit agreement. These
facilities are currently undrawn and we anticipate that they
will remain largely undrawn for the foreseeable future.
These credit facilities do not have cross-default or ratings
triggers, nor do they have material adverse events clauses,
except at the time of signing. In addition to these credit
facilities, we have an automatically effective registration
statement on Form S-3 filed with the SEC that is available
for registered offerings of short- or long-term debt securities.
Guarantees and Other Off-Balance Sheet Arrangements
We do not have guarantees or other off-balance sheet
financing arrangements, including variable interest entities,
which we believe could have a material impact on financial
condition or liquidity.