DEBT (Tables)

3 Months Ended

Mar. 31, 2022

Debt Disclosure [Abstract]

Schedule of Short-term Debt

Loans payable, commercial paper and the related weighted-average interest rates were as follows:

In millions	March 31, 2022			December 31, 2021
Loans payable (1)	$	243		$	208
Commercial paper	311		(2)	313		(3)
(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 0.33 percent at March 31, 2022. This included $111 million of borrowings under the Europe program that were at a negative weighted-average interest rate of 0.22 percent and $200 million of borrowings under the U.S. program at a weighted-average interest rate of 0.63 percent.
(3) The weighted-average interest rate, inclusive of all brokerage fees, was negative 0.01 percent at December 31, 2021. This included $113 million of borrowings under the Europe program that were at a negative weighted-average interest rate of 0.39 percent and $200 million of borrowings under the U.S. program at a weighted-average interest rate of 0.21 percent.

Summary of long-term debt

A summary of long-term debt was as follows:

In millions	Interest Rate	March 31, 2022		December 31, 2021
Long-term debt
Senior notes, due 2023	3.65%	$	500	$	500
Senior notes, due 2025(1)	0.75%	500		500
Debentures, due 2027	6.75%	58		58
Debentures, due 2028	7.125%	250		250
Senior notes, due 2030(1)	1.50%	850		850
Senior notes, due 2043	4.875%	500		500
Senior notes, due 2050	2.60%	650		650
Debentures, due 2098(2)	5.65%	165		165
Other debt		126		110
Unamortized discount and deferred issuance costs		(66)		(68)
Fair value adjustments due to hedge on indebtedness		(49)		34
Finance leases		87		89
Total long-term debt		3,571		3,638
Less: Current maturities of long-term debt		69		59
Long-term debt		$	3,502	$	3,579
(1) In 2021, we entered into a series of interest rate swaps to effectively convert from a fixed rate to floating rate. See "Interest Rate Risk" below for additional information.
(2) 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	2022		2023		2024		2025		2026
Principal payments	$	62	$	548	$	32	$	507	$	24

Schedule of Derivative Instruments, Effect on Other Comprehensive Income (Loss)

The following table summarizes the gains, net of tax, recognized in other comprehensive income:

In millions	Three months ended
Type of Swap	March 31, 2022		April 4, 2021
Interest rate locks	$	39	$	61

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	March 31, 2022		December 31, 2021
Fair value of total debt (1)	$	4,060	$	4,461
Carrying value of total debt	4,125		4,159
(1) The fair value of debt is derived from Level 2 input measures.