Annual report pursuant to Section 13 and 15(d)

DEBT (Tables)

v3.22.0.1
DEBT (Tables)
 12 Months Ended
Dec. 31, 2021
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 2021 2020
Long-term debt    
Senior notes, due 2023 3.65% $ 500  $ 500 
Senior notes, due 2025 (1)
0.75% 500  500 
Debentures, due 2027 6.75% 58  58 
Debentures, due 2028 7.125% 250  250 
Senior notes, due 2030 (1)
1.50% 850  850 
Senior notes, due 2043 4.875% 500  500 
Senior notes, due 2050 2.60% 650  650 
Debentures, due 2098 (2)
5.65% 165  165 
Other debt 110  132 
Unamortized discount and deferred issuance costs (68) (72)
Fair value adjustments due to hedge on indebtedness 34  48 
Finance leases 89  91 
Total long-term debt 3,638  3,672 
Less: Current maturities of long-term debt 59  62 
Long-term debt $ 3,579  $ 3,610 
(1) In 2021 we entered into a series of interest rate swaps to effectively convert from a fixed rate to floating rate. 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 2022 2023 2024 2025 2026
Principal payments $ 59  $ 536  $ 31  $ 507  $ 24 
Schedule of Interest Rate Derivatives
The following table summarizes the gains and losses:
  Years ended December 31,
In millions 2021 2020 2019
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)
$ (3) $ 2  $ 7  $ (5) $ 16  $ (14)
(1) The difference between the gain (loss) on swaps and borrowings represented hedge ineffectiveness.
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 2021 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 Gain (Loss) 
Recognized in AOCL		 Gain (Loss) Reclassified from AOCL into Interest Expense
Interest rate locks $ 19  $ —  (22) —  (10) — 
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 2021 2020
Fair values of total debt (1)
$ 4,461  $ 4,665 
Carrying value of total debt 4,159  4,164 
(1) The fair value of debt is derived from Level 2 input measures.
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:
2021 2020
Weighted-average interest rate 2.71  % 2.53  %
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:
2021 2020
Weighted-average interest rate (0.01) %
(1)
 (0.01) %
(2)
 (1) The weighted-average interest rate, inclusive of all brokerage fees, was negative 0.01 percent at December 31, 2021. This included $113 million of borrowings under the Europe program that were at a negative weighted-average interest rate of 0.39 percent and $200 million of borrowings under the U.S. program at a weighted-average interest rate of 0.21 percent.
(2) The weighted-average interest rate, inclusive of all brokerage fees, was negative 0.01 percent at December 31, 2020. This included $123 million of borrowings under the Europe 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.