NOTES PAYABLE, LONG-TERM DEBT AND AVAILABLE CREDIT FACILITIES

6 Months Ended

Jun. 30, 2017

Debt Disclosure [Abstract]

NOTES PAYABLE, LONG-TERM DEBT AND AVAILABLE CREDIT FACILITIES

NOTES PAYABLE, LONG-TERM DEBT AND AVAILABLE CREDIT FACILITIES

Notes Payable In millions	Jun 30, 2017			Dec 31, 2016
Commercial paper	$	195		$	—
Notes payable to banks and other lenders	266			225
Notes payable to related companies	19			44
Notes payable trade	—			3
Total notes payable	$	480		$	272
Period-end average interest rates	4.05		%	4.60		%

Long-Term Debt In millions	2017 Average Rate		Jun 30, 2017			2016 Average Rate		Dec 31, 2016
Promissory notes and debentures:
Final maturity 2017	6.03	%	$	439		6.06	%	$	442
Final maturity 2018	5.78	%	339			5.78	%	339
Final maturity 2019	8.55	%	2,122			8.55	%	2,122
Final maturity 2020	4.46	%	1,547			4.46	%	1,547
Final maturity 2021	4.71	%	1,424			4.72	%	1,424
Final maturity 2022	3.00	%	1,253			3.00	%	1,250
Final maturity 2023 and thereafter	5.98	%	7,200			5.98	%	7,199
Other facilities:
U.S. dollar loans, various rates and maturities	2.07	%	4,580			1.60	%	4,595
Foreign currency loans, various rates and maturities	3.16	%	857			3.42	%	882
Medium-term notes, varying maturities through 2025	3.86	%	996			3.82	%	1,026
Tax-exempt bonds, varying maturities through 2038	5.66	%	343			5.66	%	343
Capital lease obligations	—		292			—		295
Unamortized debt discount and issuance costs	—		(365		)	—		(373		)
Long-term debt due within one year (1)	—		(955		)	—		(635		)
Long-term debt	—		$	20,072		—		$	20,456

(1) Presented net of current portion of unamortized debt issuance costs.

Annual Installments on Long-Term Debt For Next Five Years at June 30, 2017 (1) In millions
2017	$	535
2018	$	749
2019	$	6,929
2020	$	1,828
2021	$	1,559
2022	$	1,496

(1) Assumes the option to extend a term loan facility

related to the DCC Transaction will be exercised.

2017 Activity

In the first six months of 2017, the Company redeemed $30 million aggregate principal amount of InterNotes at maturity. In addition, approximately $60 million of long-term debt was repaid by consolidated variable interest entities.

2016 Activity

In the first six months of 2016, the Company redeemed $349 million of 2.5 percent notes that matured on February 15, 2016. In addition, approximately $68 million of long-term debt (net of $28 million of additional borrowings) was repaid by consolidated variable interest entities.

As part of the DCC Transaction, the fair value of debt assumed by Dow was $4,672 million and is reflected in the preceding long-term debt table.

Available Credit Facilities

The following table summarizes the Company's credit facilities:

Committed and Available Credit Facilities at June 30, 2017
In millions	Effective Date	Committed Credit		Credit Available		Maturity Date	Interest
Five Year Competitive Advance and Revolving Credit Facility	March 2015	$	5,000	$	5,000	March 2020	Floating rate
Bilateral Revolving Credit Facility	August 2015	100		100		March 2018	Floating rate
Bilateral Revolving Credit Facility	August 2015	100		100		March 2020	Floating rate
Bilateral Revolving Credit Facility	August 2015	280		280		March 2020	Floating rate
Bilateral Revolving Credit Facility	August 2015	100		100		March 2020	Floating rate
Bilateral Revolving Credit Facility	August 2015	100		100		March 2020	Floating rate
Bilateral Revolving Credit Facility	August 2015	200		200		March 2020	Floating rate
Bilateral Revolving Credit Facility	May 2016	200		200		May 2018	Floating rate
Bilateral Revolving Credit Facility	July 2016	200		200		July 2018	Floating rate
Bilateral Revolving Credit Facility	August 2016	100		100		August 2018	Floating rate
DCC Term Loan Facility	February 2016	4,500		—		December 2019	Floating rate
Total Committed and Available Credit Facilities		$	10,880	$	6,380

In connection with the DCC Transaction, on May 31, 2016 Dow Corning incurred $4.5 billion of indebtedness under a certain third party credit agreement ("DCC Term Loan Facility"). Subsequent to the DCC Transaction, the Company guaranteed the obligations of Dow Corning under the DCC Term Loan Facility and, as a result, the covenants and events of default applicable to the DCC Term Loan Facility are substantially similar to the covenants and events of default set forth in the Company's Five Year Competitive Advance and Revolving Credit Facility. In the second quarter of 2017, Dow Corning exercised a 364-day extension option making amounts borrowed under the DCC Term Loan Facility repayable on May 29, 2018, and amended the DCC Term Loan Facility to include an additional 19-month extension option, at Dow Corning’s election, upon satisfaction of certain customary conditions precedent. Dow Corning intends to exercise the additional 19-month extension option on the DCC Term Loan Facility.

Debt Covenants and Default Provisions

There were no material changes to the debt covenants and default provisions related to the Company's outstanding long-term debt and primary, private credit agreements in the first six months of 2017. For additional information on the Company's debt covenants and default provisions, see Note 17 to the Consolidated Financial Statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2016.