Quarterly report pursuant to Section 13 or 15(d)

DEBT (Tables)

v3.4.0.3
DEBT (Tables)
 3 Months Ended
Apr. 03, 2016
Debt Disclosure [Abstract]  
Schedule of Short-term Debt
Loans payable, commercial paper and the related weighted-average interest rates were as follows:
 
 
April 3, 2016
 
December 31, 2015
Dollars in millions
 
Amount
 
Weighted Average Interest Rate
 
Amount
 
Weighted Average Interest Rate
Revolving line of credit (1)
 
$
100

 
1.02
%
 
$
—

 
—

Loans payable (2)
 
17

 
 
 
24

 
 
Total loans payable
 
117

 
 
 
24

 
 
Commercial paper (3)
 
50

 
0.43
%
(4) 
—

 
—

Total loans payable and commercial paper
 
$
167

 
 
 
$
24

 
 
____________________________________
(1) In the first quarter of 2016, we borrowed against a new international revolving line of credit, with a financial institution, which has a maximum capacity of $100 million. We plan to pay the outstanding balance in full in the second quarter of 2016.
(2) Loans payable consist primarily of notes payable to various domestic and international financial institutions. It is not practical to aggregate these notes and calculate a quarterly weighted-average interest rate.
(3) In February 2016, the Board of Directors authorized us to issue up to $1.75 billion of unsecured short-term promissory notes ("commercial paper") pursuant to a commercial paper program. The program will facilitate the private placement of unsecured short-term debt through third party brokers. We intend to use the net proceeds from the commercial paper program for general corporate purposes.
(4) The weighted average interest rate is inclusive of all brokerage fees.
Summary of long-term debt
A summary of long-term debt was as follows:
 
In millions
 
April 3,
2016
 
December 31,
2015
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

Other debt
 
77

 
55

Unamortized discount
 
(57
)
 
(57
)
Fair value adjustments due to hedge on indebtedness
 
80

 
63

Capital leases
 
90

 
81

Total long-term debt
 
1,663

 
1,615

Less: Current maturities of long-term debt
 
49

 
39

Long-term debt
 
$
1,614

 
$
1,576


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

 
$
26

 
$
38

 
$
23

 
$
7

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 value and carrying value of total debt, including current maturities, was as follows:
 
In millions
 
April 3,
2016
 
December 31,
2015
Fair value of total debt(1)
 
$
2,048

 
$
1,821

Carrying value of total debt
 
1,830

 
1,639

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