Quarterly report pursuant to Section 13 or 15(d)

DEBT

v3.20.1
DEBT
 3 Months Ended
Mar. 29, 2020
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 March 29,
2020		 December 31,
2019
Loans payable (1)
$ 121    $ 100   
Commercial paper (2)
1,617    660   
(1) Loans payable consist primarily of notes payable to various domestic and international financial institutions, and 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 1.48 percent and 1.82 percent at March 29, 2020 and December 31, 2019, respectively.
We can issue up to $3.5 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 general corporate purposes.
Revolving Credit Facilities
We have access to committed credit facilities that total $3.5 billion, including a $1.5 billion 364-day facility that expires August 19, 2020 and a $2.0 billion five-year facility that expires on August 22, 2023. We intend to maintain credit facilities at the current or higher aggregate amounts by renewing or replacing these facilities before expiration. These revolving credit facilities are maintained primarily to provide backup liquidity for our commercial paper borrowings and for general corporate purposes.

At March 29, 2020, the $1,617 million of outstanding commercial paper effectively reduced the $3.5 billion of revolving credit capacity to $1.9 billion. See Note 18, "SUBSEQUENT EVENT," for a discussion of actions taken since March 29, 2020.
At March 29, 2020, we also had an additional $213 million available for borrowings under our international and other domestic credit facilities.
Long-term Debt
A summary of long-term debt was as follows:
In millions Interest Rate March 29,
2020		 December 31,
2019
Long-term debt    
Senior notes, due 2023 3.65% $ 500    $ 500   
Debentures, due 2027 6.75% 58    58   
Debentures, due 2028 7.125% 250    250   
Senior notes, due 2043 4.875% 500    500   
Debentures, due 2098(1)
5.65% 165    165   
Other debt 47    59   
Unamortized discount (50)   (50)  
Fair value adjustments due to hedge on indebtedness 54    35   
Finance leases 89    90   
Total long-term debt 1,613    1,607   
Less: Current maturities of long-term debt 33    31   
Long-term debt $ 1,580    $ 1,576   
(1) The effective interest rate on this debt is 7.48%.
Principal payments required on long-term debt during the next five years are as follows:
In millions 2020 2021 2022 2023 2024
Principal payments $ 21    $ 41    $ 9    $ 506    $ 5   
Interest Rate Risk
In the first quarter of 2020, we entered into additional interest rate lock agreements to reduce the variability of the cash flows of the interest payments on a total of $400 million of fixed rate debt forecast to be issued in 2023 to replace our senior notes at maturity. The net loss included in "Other comprehensive income" for the three months ended March 29, 2020, was $79 million.
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 March 29,
2020		 December 31,
2019
Fair value of total debt (1)
$ 3,661    $ 2,706   
Carrying values of total debt 3,351    2,367   
(1) The fair value of debt is derived from Level 2 inputs.