Quarterly report pursuant to Section 13 or 15(d)

DEBT (Tables)

v3.22.2
DEBT (Tables)
 6 Months Ended
Jun. 30, 2022
Debt Disclosure [Abstract]  
Schedule of Short-term Debt
Loans payable, commercial paper and the related weighted-average interest rates were as follows:
In millions June 30,
2022		 December 31,
2021
Loans payable (1)
$ 165  $ 208 
Commercial paper 705 
(2)
 313 
(3)
(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 1.33 percent at June 30, 2022. This included $105 million of borrowings under the Europe program that were at a negative weighted-average interest rate of 0.20 percent and $600 million of borrowings under the U.S. program at a weighted-average interest rate of 1.60 percent.
(3) 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.
Summary of long-term debt
A summary of long-term debt was as follows:
In millions Interest Rate June 30,
2022		 December 31,
2021
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 149  110 
Unamortized discount and deferred issuance costs (65) (68)
Fair value adjustments due to hedge on indebtedness (85) 34 
Finance leases 83  89 
Total long-term debt 3,555  3,638 
Less: Current maturities of long-term debt 65  59 
Long-term debt $ 3,490  $ 3,579 
(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 percent.
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 $ 44  $ 545  $ 41  $ 508  $ 54 
Schedule of Interest Rate Derivatives
The following table summarizes the gains and losses:
Three months ended Six months ended
In millions June 30, 2022 June 30, 2022
Type of Swap Gain (Loss) 
on Swaps		 Gain (Loss) on Borrowings Gain (Loss) 
on Swaps		 Gain (Loss) on Borrowings
Interest rate swaps(1)
$ (39) $ 34  $ (111) $ 114 
(1) The difference between the gain (loss) on swaps and borrowings represents hedge ineffectiveness.
Schedule of Derivative Instruments, Effect on Other Comprehensive Income (Loss) The following table summarizes the gains and losses, net of tax, recognized in other comprehensive income:
In millions Three months ended Six months ended
Type of Swap June 30,
2022		 July 4,
2021		 June 30,
2022		 July 4,
2021
Interest rate locks $ 43  $ (33) $ 82  $ 28 
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:
 
In millions June 30,
2022		 December 31,
2021
Fair value of total debt (1)
$ 4,109  $ 4,461 
Carrying value of total debt 4,425  4,159 
(1) The fair value of debt is derived from Level 2 input measures.