Quarterly report pursuant to Section 13 or 15(d)

DEBT

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DEBT
9 Months Ended
Sep. 29, 2013
Debt Disclosure [Abstract]  
DEBT
NOTE 10. DEBT
 
As a well-known seasoned issuer, we filed an automatic shelf registration for an undetermined amount of debt and equity securities with the SEC on September 16, 2013. Under this shelf registration we may offer, from time to time, debt securities, common stock, preferred and preference stock, depositary shares, warrants, stock purchase contracts and stock purchase units.

In September 2013, we issued $1 billion aggregate principal amount of senior notes consisting of $500 million aggregate principal amount of 3.65% senior unsecured notes due in 2023 and $500 million aggregate principal amount of 4.875% senior unsecured notes due in 2043. We received net proceeds of $979 million. The senior notes pay interest semi-annually on April 1 and October 1, commencing on April 1, 2014. The indenture governing the senior notes contains covenants that, among other matters, limit (i) our ability to consolidate or merge into, or sell, assign, convey, lease, transfer or otherwise dispose of all or substantially all of our and our subsidiaries' assets to another person, (ii) our and certain of our subsidiaries' ability to create or assume liens and (iii) our and certain of our subsidiaries' ability to engage in sale and leaseback transactions.

A summary of long-term debt was as follows:
 
In millions
 
September 29,
2013
 
December 31,
2012
Long-term debt
 
 

 
 

Export financing loan, 4.5%, due 2013
 
$

 
$
23

Senior notes, 3.65%, due 2023
 
500

 

Debentures, 6.75%, due 2027
 
58

 
58

Debentures, 7.125%, due 2028 (1)
 
250

 
250

Senior notes, 4.875%, due 2043
 
500

 

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

 
165

Credit facilities related to consolidated joint ventures
 
129

 
88

Other
 
73

 
69

 
 
1,675

 
653

Unamortized discount
 
(48
)
 
(35
)
Fair value adjustments due to hedge on indebtedness
 
54

 
88

Capital leases
 
97

 
53

Total long-term debt
 
1,778

 
759

Less: Current maturities of long-term debt
 
(47
)
 
(61
)
Long-term debt
 
$
1,731

 
$
698

___________________________________________________
(1) In November 2005, we entered into an interest rate swap to effectively convert our $250 million debt issue, due in 2028, from a fixed rate of 7.125 percent to a floating rate based on a LIBOR spread (see Note 13).
 
Principal payments required on long-term debt during the next five years are as follows:
 
 
 
Required Principal Payments
In millions
 
2013
 
2014
 
2015
 
2016
 
2017
Payment
 
$
16

 
$
45

 
$
85

 
$
63

 
$
14