Annual report pursuant to Section 13 and 15(d)

DEBT (Tables)

v3.6.0.2
DEBT (Tables)
 12 Months Ended
Dec. 31, 2016
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 was as follows:
 
 
2016
 
2015
 
2014
Weighted average interest rate
 
4.20
%
 
3.65
%
 
3.70
%
Summary of long-term debt
 
December 31,
In millions
2016
 
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
51

 
55

Unamortized discount
(56
)
 
(57
)
Fair value adjustments due to hedge on indebtedness
47

 
63

Capital leases
88

 
81

Total long-term debt
1,603

 
1,615

Less: Current maturities of long-term debt
35

 
39

Long-term debt
$
1,568

 
$
1,576

Principal repayments on long-term debt
Principal payments required on long-term debt during the next five years are as follows:
In millions
2017
 
2018
 
2019
 
2020
 
2021
Principal payments
$
35

 
$
33

 
$
29

 
$
8

 
$
4

Schedule of Interest Rate Derivatives
The following table summarizes these gains and losses for the years presented below:
 
 
Years ended December 31,
In millions
 
2016
 
2015
 
2014
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)
 
$
(8
)
 
$
12

 
$
6

 
$
(2
)
 
$
23

 
$
(19
)
___________________________________________
(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:
 
 
 
December 31,
In millions
 
2016
 
2015
Fair value of total debt (1)
 
$
2,077

 
$
1,821

Carrying value of total debt
 
1,856

 
1,639


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