Annual report pursuant to Section 13 and 15(d)

DEBT (Tables)

v2.4.1.9
DEBT (Tables)
 12 Months Ended
Dec. 31, 2014
Debt Disclosure [Abstract]  
Weighted-average interest rate
The weighted-average interest rate for notes payable, bank overdrafts and current maturities of long-term debt at December 31, 2014, 2013 and 2012, was as follows:
 
2014
 
2013
 
2012
Weighted average interest rate
3.70
%
 
2.59
%
 
3.21
%
Reconciliation of maximum capacity to amount available under the facility
A reconciliation of the maximum capacity of our revolver to the amount available under the facility was as follows:
In millions
December 31, 2014
Maximum credit capacity of the revolving credit facility
$
1,750

Less: Letters of credit against revolving credit facility
24

Amount available for borrowing under the revolving credit facility
$
1,726

Summary of long-term debt
 
December 31,
In millions
2014
 
2013
Long-term debt
 
 
 
Senior notes, 3.65%, due 2023
$
500

 
$
500

Debentures, 6.75%, due 2027
58

 
58

Debentures, 7.125%, due 2028
250

 
250

Senior notes, 4.875%, due 2043
500

 
500

Debentures, 5.65%, due 2098 (effective interest rate 7.48%)
165

 
165

Credit facilities related to consolidated joint ventures
3

 
92

Other debt
31

 
65

Unamortized discount
(47
)
 
(48
)
Fair value adjustments due to hedge on indebtedness
65

 
49

Capital leases
87

 
92

Total long-term debt
1,612

 
1,723

Less: Current maturities of long-term debt
(23
)
 
(51
)
Long-term debt
$
1,589

 
$
1,672

Principal repayments on long-term debt
Principal payments required on long-term debt during the next five years are as follows:
In millions
2015
 
2016
 
2017
 
2018
 
2019
Principal payments
$
23

 
$
28

 
$
12

 
$
16

 
$
11

Schedule of Interest Rate Derivatives [Table Text Block]
The following table summarizes these gains and losses for the years presented below:
 
 
Years ended December 31,
In millions
 
2014
 
2013
 
2012
Income Statement Classification
 
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 expense (1)
 
$
23

 
$
(19
)
 
$
(39
)
 
$
39

 
$
6

 
$
(6
)
___________________________________________
(1) The difference between the gain/(loss) on swaps and borrowings represents hedge ineffectiveness.
Fair value and carrying value of total debt
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 value and carrying value of total debt, including current maturities, was as follows:
 
In millions
 
December 31, 2014
 
December 31, 2013
Fair value of total debt(1)
 
$
1,993

 
$
1,877

Carrying value of total debt
 
1,698

 
1,740


___________________________________________
(1) The fair value of debt is derived from Level 2 inputs.