Quarterly report pursuant to Section 13 or 15(d)

DEBT

v3.10.0.1
DEBT
 6 Months Ended
Jul. 01, 2018
Debt Disclosure [Abstract]  
DEBT NOTE 9. DEBT
Loans Payable and Commercial Paper
Loans payable, commercial paper and the related weighted-average interest rates were as follows:
In millions
 
July 1, 2018
 
December 31,
2017
Loans payable (1)
 
$
55

 
$
57

Commercial paper (2)
 
802

 
298

____________________________________
(1)  Loans payable consist primarily of notes payable to various domestic and international financial institutions. It is not practicable to aggregate these notes and calculate a quarterly weighted-average interest rate.
(2)  The weighted average interest rate, inclusive of all brokerage fees, was 2.08 percent and 1.56 percent at July 1, 2018 and December 31, 2017, respectively.
We can issue up to $2.75 billion of unsecured, short-term promissory notes ("commercial paper") pursuant to our 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 general corporate purposes.
Revolving Credit Facilities
We have access to committed credit facilities that total $2.75 billion, including a $1.0 billion, 364-day facility that expires September 14, 2018 and a $1.75 billion, 5-year facility that expires on November 13, 2020. We intend to maintain credit facilities of a similar aggregate amount by renewing or replacing these facilities before expiration. Revolving credit facilities are maintained primarily to provide backup liquidity for our commercial paper borrowings, letters of credit and general corporate purposes.
Long-term Debt
A summary of long-term debt was as follows:
 
In millions
 
July 1,
2018
 
December 31,
2017
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
 
55

 
76

Unamortized discount
 
(53
)
 
(54
)
Fair value adjustments due to hedge on indebtedness
 
18

 
35

Capital leases
 
112

 
121

Total long-term debt
 
1,605

 
1,651

Less: Current maturities of long-term debt
 
49

 
63

Long-term debt
 
$
1,556

 
$
1,588


Principal payments required on long-term debt during the next five years are as follows:
In millions
 
2018
 
2019
 
2020
 
2021
 
2022
Principal payments
 
$
30

 
$
50

 
$
12

 
$
8

 
$
8


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:
 
In millions
 
July 1,
2018
 
December 31,
2017
Fair value of total debt (1)
 
$
2,668

 
$
2,301

Carrying values of total debt
 
2,462

 
2,006

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