Quarterly report pursuant to Section 13 or 15(d)

DEBT (Tables)

v3.23.3
DEBT (Tables)
 9 Months Ended
Sep. 30, 2023
Debt Disclosure [Abstract]  
Schedule of Short-term Debt
Loans payable, commercial paper and the related weighted-average interest rates were as follows:
In millions September 30,
2023		 December 31,
2022
Loans payable (1)
$ 231  $ 210 
Commercial paper (2)
1,710  2,574 
(1) Loans payable consist primarily of notes payable to various domestic and international financial institutions. It is not practicable to aggregate these notes and calculate a quarterly weighted-average interest rate.
(2) The weighted-average interest rate, inclusive of all brokerage fees, was 5.48 percent and 4.27 percent at September 30, 2023 and December 31, 2022, respectively.
Summary of long-term debt
A summary of long-term debt was as follows:
In millions Interest Rate September 30,
2023		 December 31,
2022
Long-term debt    
Senior notes, due 2023 (1)
3.65% $ 500  $ 500 
Hydrogenics promissory notes, due 2024 and 2025 (2)
—% 160  — 
Term loan, due 2025 (3) (4)
Variable 1,350  1,550 
Senior notes, due 2025 (5)
0.75% 500  500 
Atmus term loan, due 2027 (6)
Variable 600  — 
Debentures, due 2027 6.75% 58  58 
Debentures, due 2028 7.125% 250  250 
Senior notes, due 2030 (5)
1.50% 850  850 
Senior notes, due 2043 4.875% 500  500 
Senior notes, due 2050 2.60% 650  650 
Debentures, due 2098 (7)
5.65% 165  165 
Other debt 56  121 
Unamortized discount and deferred issuance costs (75) (64)
Fair value adjustments due to hedge on indebtedness (141) (122)
Finance leases 100  113 
Total long-term debt 5,523  5,071 
Less: Current maturities of long-term debt 573  573 
Long-term debt $ 4,950  $ 4,498 
(1) Senior notes, due 2023, are classified as current maturities of long-term debt. On October 2, 2023, we repaid the $500 million senior notes. See NOTE 19, "SUBSEQUENT EVENTS," to our Condensed Consolidated Financial Statements for additional information.
(2) See NOTE 16, "ACQUISITIONS," to our Condensed Consolidated Financial Statements for additional information.
(3) During the first nine months of 2023, we paid down $200 million of the term loan, and on October 31, 2023, we repaid an additional $150 million of the term loan.
(4) In September 2023, we entered into a series of interest rate swaps in order to trade a portion of the floating rate debt into fixed rate. See "Interest Rate Risk" in NOTE 13, "DERIVATIVES," to our Condensed Consolidated Financial Statements for additional information.
(5) In 2021, we entered into a series of interest rate swaps to effectively convert debt from a fixed rate to floating rate. See "Interest Rate Risk" in NOTE 13, "DERIVATIVES," to our Condensed Consolidated Financial Statements for additional information.
(6) See "Atmus Credit Agreement" section below for additional information.
(7) The effective interest rate is 7.48 percent.
Principal repayments on long-term debt
Principal payments required on long-term debt during the next five years are as follows:
In millions 2023 2024 2025 2026 2027
Principal payments $ 523 
(1)
 $ 106  $ 1,989  $ 50  $ 604 
(1) On October 2, 2023, we repaid our $500 million senior notes, due 2023. See NOTE 19, "SUBSEQUENT EVENTS," to our Condensed Consolidated Financial Statements for additional information.
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 values and carrying values of total debt, including current maturities, were as follows:
 
In millions September 30,
2023		 December 31,
2022
Fair value of total debt (1)
$ 6,939  $ 7,400 
Carrying value of total debt 7,464  7,855 
(1) The fair value of debt is derived from Level 2 input measures.