Annual report pursuant to Section 13 and 15(d)

DEBT (Tables)

v3.20.4
DEBT (Tables)
 12 Months Ended
Dec. 31, 2020
Short-term Debt [Line Items]  
Summary of long-term debt
A summary of long-term debt was as follows:
  December 31,
In millions Interest Rate 2020 2019
Long-term debt    
Senior notes, due 2023 (1)
3.65% $ 500  $ 500 
Senior notes, due 2025 0.75% 500  — 
Debentures, due 2027 6.75% 58  58 
Debentures, due 2028 7.125% 250  250 
Senior notes, due 2030 1.50% 850  — 
Senior notes, due 2043 4.875% 500  500 
Senior notes, due 2050 2.60% 650  — 
Debentures, due 2098 (2)
5.65% 165  165 
Other debt 132  59 
Unamortized discount and deferred issuance costs (72) (50)
Fair value adjustments due to hedge on indebtedness 48  35 
Finance leases 91  90 
Total long-term debt 3,672  1,607 
Less: Current maturities of long-term debt 62  31 
Long-term debt $ 3,610  $ 1,576 
(1) In June and July 2020, we settled our February 2014 interest rate swaps. See "Interest Rate Risk" below for additional information.
(2) The effective interest rate is 7.48%.
Principal repayments on long-term debt
Principal payments required on long-term debt during the next five years are as follows:
In millions 2021 2022 2023 2024 2025
Principal payments $ 62  $ 49  $ 526  $ 23  $ 506 
Schedule of Derivative Instruments, Effect on Other Comprehensive Income (Loss)
The following table summarizes the interest rate lock activity in AOCL:
Year ended December 31,
In millions 2020 2019
Type of Swap Gain (Loss) 
Recognized in AOCL		 Gain (Loss) Reclassified from AOCL into Interest Expense Gain (Loss) 
Recognized in AOCL		 Gain (Loss) Reclassified from AOCL into Interest Expense
Interest rate locks $ (22) $ —  (10) — 
Schedule of Interest Rate Derivatives
The following table summarizes the gains and losses:
  Years ended December 31,
In millions 2020 2019 2018
Type of Swap 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 rate swaps(1)
$ 7  $ (5) $ 16  $ (14) $ (8) $ 7 
(1) The difference between the gain/(loss) on swaps and borrowings represented hedge ineffectiveness.
Fair value and carrying value of total 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 2020 2019
Fair values of total debt (1)
$ 4,665  $ 2,706 
Carrying value of total debt 4,164  2,367 
(1) The fair value of debt is derived from Level 2 inputs.
Loans Payable  
Short-term Debt [Line Items]  
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:
2020 2019 2018
Weighted-average interest rate 2.53  % 3.20  % 4.66  %
Commercial Paper  
Short-term Debt [Line Items]  
Weighted-average interest rate The weighted-average interest rate for commercial paper at December 31 was as follows:
2020 2019 2018
Weighted-average interest rate (0.01) %
(1)
 1.82  % 2.59  %
(1) The weighted-average interest rate, inclusive of all brokerage fees, was negative 0.01 percent at December 31, 2020. This includes $123 million of borrowings under the EUR program that were at a negative weighted-average interest rate of 0.34 percent and $200 million of borrowings under the U.S. program at a weighted-average interest rate of 0.19 percent.