Quarterly report pursuant to Section 13 or 15(d)

DEBT (Tables)

v2.4.0.8
DEBT (Tables)
 6 Months Ended
Jun. 29, 2014
Debt Disclosure [Abstract]  
Summary of long-term debt
A summary of long-term debt was as follows:
 
In millions
 
June 29, 2014
 
December 31, 2013
Long-term debt
 
 

 
 

Senior notes, 3.65%, due 2023 (1)
 
$
500

 
$
500

Debentures, 6.75%, due 2027
 
58

 
58

Debentures, 7.125%, due 2028 (1)
 
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
 
46

 
92

Other
 
46

 
65

 
 
1,565

 
1,630

Unamortized discount
 
(48
)
 
(48
)
Fair value adjustments due to hedge on indebtedness (1)
 
54

 
49

Capital leases
 
89

 
92

Total long-term debt
 
1,660

 
1,723

Less: Current maturities of long-term debt
 
(33
)
 
(51
)
Long-term debt
 
$
1,627

 
$
1,672

_________________________________________________________________________
(1) In February 2014, we settled our November 2005 interest rate swap which previously converted our $250 million debt issue, due in 2028, from a fixed rate to a floating rate based on a LIBOR spread. We are amortizing the $52 million gain realized upon settlement over the remaining 14-year term of related debt. Also, in February 2014, we entered into a series of interest rate swaps to effectively convert our September 2013, $500 million debt issue, due in 2023, from a fixed rate of 3.65 percent to a floating rate equal to the one-month LIBOR plus a spread. See Note 12, "DERIVATIVES" for further details.
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
 
2014
 
2015
 
2016
 
2017
 
2018
Payment
 
$
22

 
$
60

 
$
31

 
$
10

 
$
16

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
 
June 29, 2014
 
December 31, 2013
Fair value of total debt(1)
 
$
1,946

 
$
1,877

Carrying value of total debt
 
1,690

 
1,740

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