Quarterly report pursuant to Section 13 or 15(d)

DEBT

v3.8.0.1
DEBT
 9 Months Ended
Oct. 01, 2017
Debt Disclosure [Abstract]  
DEBT NOTE 7. DEBT
Loans Payable and Commercial Paper
Loans payable, commercial paper and the related weighted-average interest rates were as follows:
In millions
 
October 1, 2017
 
December 31, 2016
Loans payable (1)
 
$
64

 
$
41

Commercial paper (2)
 
514

 
212

____________________________________
(1)  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.
(2)  The weighted average interest rate, inclusive of all brokerage fees, was 1.22 percent and 0.79 percent at October 1, 2017 and December 31, 2016, respectively.

Revolving Credit Facility
On September 5, 2017, we entered into a 364-day credit facility that allows us to borrow up to $1 billion of additional unsecured funds at any time through September 2018.
We have access to credit facilities that total $2.75 billion, including the new 364-day facility and the $1.75 billion facility that expires on November 13, 2020. We intend to maintain credit facilities of a similar aggregate amount by renewing or replacing these facilities before expiration. Revolving credit facilities are maintained primarily to provide backup liquidity for our commercial paper borrowings, letters of credit and general corporate purposes.
Long-term Debt
A summary of long-term debt was as follows:
 
In millions
 
October 1,
2017
 
December 31,
2016
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
 
91

 
51

Unamortized discount
 
(54
)
 
(56
)
Fair value adjustments due to hedge on indebtedness
 
42

 
47

Capital leases
 
125

 
88

Total long-term debt
 
1,677

 
1,603

Less: Current maturities of long-term debt
 
62

 
35

Long-term debt
 
$
1,615

 
$
1,568


Principal payments required on long-term debt during the next five years are as follows:
In millions
 
2017
 
2018
 
2019
 
2020
 
2021
Principal payments
 
$
23

 
$
59

 
$
51

 
$
12

 
$
6


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 values and carrying values of total debt, including current maturities, were as follows:
 
In millions
 
October 1,
2017
 
December 31,
2016
Fair value of total debt (1)
 
$
2,528

 
$
2,077

Carrying value of total debt
 
2,255

 
1,856

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