Annual report pursuant to Section 13 and 15(d)

DEBT (Tables)

v3.3.1.900
DEBT (Tables)
 12 Months Ended
Dec. 31, 2015
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, 2015, 2014 and 2013, was as follows:
 
2015
 
2014
 
2013
Weighted average interest rate
3.65
%
 
3.70
%
 
2.59
%
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, 2015
Maximum credit capacity of the revolving credit facility
$
1,750

Less: Letters of credit against revolving credit facility
8

Amount available for borrowing under the revolving credit facility
$
1,742

Summary of long-term debt
 
December 31,
In millions
2015
 
2014
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

Other debt
55

 
31

Unamortized discount
(57
)
 
(59
)
Fair value adjustments due to hedge on indebtedness
63

 
65

Capital leases
81

 
87

Total long-term debt
1,615

 
1,600

Less: Current maturities of long-term debt
(39
)
 
(23
)
Long-term debt
$
1,576

 
$
1,577

Principal repayments on long-term debt
Principal payments required on long-term debt during the next five years are as follows:
In millions
2016
 
2017
 
2018
 
2019
 
2020
Principal payments
$
39

 
$
18

 
$
23

 
$
16

 
$
5

Schedule of Interest Rate Derivatives
The following table summarizes these gains and losses for the years presented below:
 
 
Years ended December 31,
In millions
 
2015
 
2014
 
2013
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)
 
$
6

 
$
(2
)
 
$
23

 
$
(19
)
 
$
(39
)
 
$
39

___________________________________________
(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, 2015
 
December 31, 2014
Fair value of total debt(1)
 
$
1,821

 
$
1,993

Carrying value of total debt
 
1,639

 
1,686


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