| 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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September 30,
2024 |
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December 31,
2023 |
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Loans payable (1)
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$ |
441
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$ |
280 |
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Commercial paper (2)
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1,636
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1,496 |
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(1) Loans payable consist primarily of notes payable to various international and domestic 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 5.25 percent and 5.43 percent at September 30, 2024, and December 31, 2023, 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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September 30,
2024 |
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December 31,
2023 |
| Long-term debt |
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| Hydrogenics promissory notes, due 2024 and 2025 |
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—% |
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$ |
160
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$ |
160 |
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Term loan, due 2025 (1) (2)
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Variable |
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—
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1,150 |
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Senior notes, due 2025 (3)
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0.75% |
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500
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500 |
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Atmus term loan, due 2027 (4)
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Variable |
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—
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600 |
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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 2029 |
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4.90% |
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500
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— |
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Senior notes, due 2030 (3)
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1.50% |
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850
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850 |
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| Senior notes, due 2034 |
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5.15% |
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750
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— |
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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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| Senior notes, due 2054 |
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5.45% |
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1,000
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— |
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Debentures, due 2098 (5)
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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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165
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94 |
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| Unamortized discount and deferred issuance costs |
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(92) |
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(72) |
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| Fair value adjustments due to hedge on indebtedness |
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(70) |
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(96) |
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| Finance leases |
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124
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111 |
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| Total long-term debt |
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5,510
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4,920 |
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| Less: Current maturities of long-term debt |
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654
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118 |
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| Long-term debt |
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$ |
4,856
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$ |
4,802 |
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(1) During the first nine months of 2024, we repaid the outstanding balance of the term loan.
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(2) In 2023, we entered into a series of interest rate swaps in order to trade a portion of the floating rate debt into fixed rate. See "Interest Rate Risk" in NOTE 13, "DERIVATIVES," for additional information.
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(3) In 2021, we entered into a series of interest rate swaps to effectively convert debt from a fixed rate to floating rate. See "Interest Rate Risk" in NOTE 13, "DERIVATIVES," for additional information.
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(4) See NOTE 14, "ATMUS INITIAL PUBLIC OFFERING (IPO) AND DIVESTITURE," for additional information.
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(5) The effective interest rate is 7.48 percent.
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On February 20, 2024, we issued $2.25 billion aggregate principal amount of senior unsecured notes consisting of $500 million aggregate principal amount of 4.90 percent senior unsecured notes due in 2029, $750 million aggregate principal amount of 5.15 percent senior unsecured notes due in 2034 and $1.0 billion aggregate principal amount of 5.45 percent senior unsecured notes due in 2054. We received net proceeds of $2.2 billion. The senior unsecured notes pay interest semi-annually on February 20 and August 20, commencing on August 20, 2024. The indenture governing the senior unsecured notes contains covenants that, among other matters, limit (i) our ability to consolidate or merge into, or sell, assign, convey, lease, transfer or otherwise dispose of all or substantially all of our and our subsidiaries' assets to another person, (ii) our and certain of our subsidiaries' ability to create or assume liens and (iii) our and certain of our subsidiaries' ability to engage in sale and leaseback transactions.
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| Fair value and carrying value of total debt |
Based on borrowing rates currently available to us for bank loans with similar terms and average maturities, considering our risk premium, the fair values and carrying values of total debt, including current maturities, were as follows:
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| In millions |
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September 30,
2024 |
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December 31,
2023 |
Fair value of total debt (1)
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$ |
7,426
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$ |
6,375 |
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| Carrying value of total debt |
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7,587
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6,696 |
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(1) The fair value of debt is derived from Level 2 input measures.
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