DEBT (Tables)
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6 Months Ended |
Jun. 30, 2023 |
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| Debt Disclosure [Abstract] |
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| Schedule of Short-term Debt |
Loans payable, commercial paper and the related weighted-average interest rates were as follows:
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| In millions |
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June 30,
2023 |
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December 31,
2022 |
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Loans payable (1)
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$ |
419
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$ |
210 |
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Commercial paper (2)
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1,617
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2,574 |
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(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.
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(2) The weighted-average interest rate, inclusive of all brokerage fees, was 5.14 percent and 4.27 percent at June 30, 2023 and December 31, 2022, respectively.
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| Summary of long-term debt |
A summary of long-term debt was as follows:
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| In millions |
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Interest Rate |
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June 30,
2023 |
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December 31,
2022 |
| Long-term debt |
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Senior notes, due 2023 (1)
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3.65% |
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$ |
500
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$ |
500 |
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Hydrogenics promissory notes, due 2024 and 2025 (2)
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—% |
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160
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— |
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Term loan, due 2025 (3)
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Variable |
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1,400
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1,550 |
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Senior notes, due 2025 (4)
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0.75% |
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500
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500 |
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Atmus revolving credit facility, due 2027 (5)
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Variable |
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50
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— |
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Atmus term loan, due 2027 (5)
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Variable |
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600
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— |
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| Debentures, due 2027 |
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6.75% |
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58
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58 |
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| Debentures, due 2028 |
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7.125% |
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250
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250 |
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Senior notes, due 2030 (4)
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1.50% |
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850
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850 |
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| Senior notes, due 2043 |
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4.875% |
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500
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500 |
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| Senior notes, due 2050 |
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2.60% |
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650
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650 |
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Debentures, due 2098 (6)
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5.65% |
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165
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165 |
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| Other debt |
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68
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121 |
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| Unamortized discount and deferred issuance costs |
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(77) |
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(64) |
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| Fair value adjustments due to hedge on indebtedness |
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(121) |
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(122) |
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| Finance leases |
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111
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113 |
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| Total long-term debt |
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5,664
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5,071 |
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| Less: Current maturities of long-term debt |
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575
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573 |
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| Long-term debt |
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$ |
5,089
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$ |
4,498 |
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(1) Senior notes, due 2023, are classified as current maturities of long-term debt.
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(2) See NOTE 16, "ACQUISITIONS," to our Condensed Consolidated Financial Statements for additional information.
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(3) During the first six months of 2023, we paid down $150 million of the term loan.
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(4) In 2021, we entered into a series of interest rate swaps to effectively convert from a fixed rate to floating rate. See "Interest Rate Risk" in NOTE 13, "DERIVATIVES," to our Condensed Consolidated Financial Statements for additional information.
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(5) See "Atmus Credit Agreement" section below for additional information.
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(6) The effective interest rate is 7.48 percent.
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| Principal repayments on long-term debt |
Principal payments required on long-term debt during the next five years are as follows:
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| In millions |
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2023 |
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2024 |
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2025 |
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2026 |
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2027 |
| Principal payments |
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$ |
550 |
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$ |
98 |
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$ |
2,016 |
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$ |
9 |
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$ |
715 |
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| 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:
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| In millions |
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June 30,
2023 |
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December 31,
2022 |
Fair value of total debt (1)
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$ |
7,280
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$ |
7,400 |
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| Carrying value of total debt |
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7,700
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7,855 |
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(1) The fair value of debt is derived from Level 2 input measures.
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