Annual report pursuant to Section 13 and 15(d)

DEBT (Tables)

v3.8.0.1
DEBT (Tables)
 12 Months Ended
Dec. 31, 2017
Debt Disclosure [Abstract]  
Weighted-average interest rate The weighted-average interest rate for notes payable, bank overdrafts and current maturities of long-term debt at December 31 was as follows:
 
 
2017
 
2016
 
2015
Weighted-average interest rate
 
3.01
%
 
4.20
%
 
3.65
%
Summary of long-term debt
 
December 31,
In millions
2017
 
2016
Long-term debt
 
 
 
Senior notes, 3.65%, due 2023
$
500

 
$
500

Debentures, 6.75%, due 2027
58

 
58

Debentures, 7.125%, due 2028
250

 
250

Senior notes, 4.875%, due 2043
500

 
500

Debentures, 5.65%, due 2098 (effective interest rate 7.48%)
165

 
165

Other debt
76

 
51

Unamortized discount
(54
)
 
(56
)
Fair value adjustments due to hedge on indebtedness
35

 
47

Capital leases
121

 
88

Total long-term debt
1,651

 
1,603

Less: Current maturities of long-term debt
63

 
35

Long-term debt
$
1,588

 
$
1,568

Principal repayments on long-term debt Principal payments required on long-term debt during the next five years are as follows:
In millions
2018
 
2019
 
2020
 
2021
 
2022
Principal payments
$
63

 
$
50

 
$
12

 
$
6

 
$
6

Schedule of Interest Rate Derivatives The following table summarizes these gains and losses for the years presented below:
 
 
Years ended December 31,
In millions
 
2017
 
2016
 
2015
Income Statement Classification
 
Gain/(Loss) on Swaps
 
Gain/(Loss) on Borrowings
 
Gain/(Loss) on Swaps
 
Gain/(Loss) on Borrowings
 
Gain/(Loss) on
Swaps
 
Gain/(Loss) on
Borrowings
Interest expense (1)
 
$
(7
)
 
$
8

 
$
(8
)
 
$
12

 
$
6

 
$
(2
)
___________________________________________
(1) The difference between the gain/(loss) on swaps and borrowings represents hedge ineffectiveness.
Fair value and carrying value of total debt Fair Value of Debt
Based on borrowing rates currently available to us for bank loans with similar terms and average maturities, considering our risk premium, the fair values and carrying values of total debt, including current maturities, were as follows:
 
 
 
December 31,
In millions
 
2017
 
2016
Fair values of total debt (1)
 
$
2,301

 
$
2,077

Carrying values of total debt
 
2,006

 
1,856


___________________________________________
(1) The fair value of debt is derived from Level 2 inputs.