9. LONG-TERM DEBT

Credit Facilities

In December 2016, a subsidiary of the company entered into a two-year credit facility, with two additional one-year option periods, in an aggregate principal amount of £120 million (the equivalent of approximately $147 million as of December 31, 2016) (the "2016 Credit Agreement"). The 2016 Credit Agreement is guaranteed by the company. At December 31, 2016, there was £110 million (the equivalent of approximately $135 million as of December 31, 2016) outstanding under this facility, which bears interest at a rate of LIBOR plus 1.10 percent. All of the borrowings outstanding under this facility mature less than one year from the date of issuance, but may be renewed under the terms of the facility. Based on our intent and ability to refinance the obligations on a long-term basis, substantially all of the borrowings are classified as non-current. The majority of the proceeds from this borrowing were used to facilitate the repatriation of earnings from certain of our foreign subsidiaries as discussed in Note 6.

In July 2015, the company amended its $1.8 billion five-year credit facility dated August 29, 2013 by reducing the aggregate principal amount available under the facility to $1.6 billion and extending the maturity to July 2020 (the “2015 Credit Agreement”). At December 31, 2016, there was no balance outstanding under this facility.

The Credit Agreements contain generally customary terms and conditions, including covenants restricting the company's ability to sell all or substantially all of its assets, merge or consolidate with another entity or undertake other fundamental changes and incur liens. The company also cannot permit the ratio of its debt to capitalization (as set forth in the Credit Agreements) to exceed 65 percent. At December 31, 2016, the company was in compliance with all covenants under the Credit Agreements.

Unsecured Senior Notes

In December 2016, the company issued $750 million of unsecured senior notes due February 1, 2027, with a fixed interest rate of 3.20 percent (the Notes). Interest on the Notes is payable semi-annually in arrears. The Notes are subject to redemption, in whole or in part, at the company's discretion at any time, or from time to time, prior to maturity at a redemption price equal to the greater of the principal amount of the Notes or an applicable “make-whole” amount, plus accrued and unpaid interest. We used a portion of the net proceeds to fund redemption of $200 million of the company's 6.75 percent unsecured senior notes due April 15, 2018. We recorded a pre-tax charge of $14 million principally related to the premium paid on the redemption, which was recorded in other, net in the consolidated statements of earnings and comprehensive income.

In February 2015, the company issued $600 million of unsecured senior notes due April 15, 2045 with a fixed interest rate of 3.85 percent. We used the net proceeds from this offering for the funding of a $500 million voluntary contribution to our pension plans in the first quarter of 2015 and a debt repayment of $107 million in the first quarter 2016.

Long-term debt consists of the following:



$ in millions		December 31
$ in millions		2016			2015
Fixed-rate notes and debentures, maturing in	Interest rate
2016	7.75%	$	—		$	107
2018	1.75%	850			1,050
2019	5.05%	500			500
2021	3.50%	700			700
2023	3.25%	1,050			1,050
2026	7.75% - 7.88%	527			527
2027	3.20%	750			—
2031	7.75%	466			466
2040	5.05%	300			300
2043	4.75%	950			950
2045	3.85%	600			600
Credit facilities	1.64%	135			—
Other	Various	273			276
Debt issuance costs		(31		)	(30		)
Total long-term debt		7,070			6,496
Less: current portion		12			110
Long-term debt, net of current portion		$	7,058		$	6,386

The estimated fair value of long-term debt was $7.6 billion and $6.9 billion as of December 31, 2016 and 2015, respectively. We calculated the fair value of long-term debt using Level 2 inputs, based on interest rates available for debt with terms and maturities similar to the company’s existing debt arrangements.

Indentures underlying long-term debt issued by the company or its subsidiaries contain various restrictions with respect to the issuer, including one or more restrictions relating to limitations on liens, sale-leaseback arrangements and funded debt of subsidiaries. The majority of these fixed rate notes and debentures are subject to redemption at the company’s discretion at any time prior to maturity in whole or in part at the principal amount plus any make-whole premium and accrued and unpaid interest. Interest on these fixed rate notes and debentures are payable semi-annually in arrears.

Total interest payments, net of interest received, were $299 million, $291 million, and $281 million for the years ended December 31, 2016, 2015 and 2014, respectively.

Maturities of long-term debt as of December 31, 2016, are as follows:



$ in millions
Year Ending December 31
2017	$	12
2018	853
2019	567
2020	94
2021	740
Thereafter	4,831
Total principal payments	7,097
Unamortized premium on long-term debt, net of discount	4
Debt issuance costs	(31		)
Total long-term debt	$	7,070