XML 39 R26.htm IDEA: XBRL DOCUMENT v3.21.1
NOTES PAYABLE, LONG-TERM DEBT AND AVAILABLE CREDIT FACILITIES (Notes)
 3 Months Ended
Mar. 31, 2021
Debt Disclosure [Abstract]  
Debt Disclosure NOTES PAYABLE, LONG-TERM DEBT AND AVAILABLE CREDIT FACILITIES
Notes PayableMar 31, 2021Dec 31, 2020
In millions
Notes payable to banks and other lenders$152 $156 
Period-end average interest rates3.81%3.89%

Long-Term Debt2021 Average RateMar 31, 20212020 Average RateDec 31, 2020
In millions
Promissory notes and debentures:
Final maturity 20218.95%$173 8.95%$173 
Final maturity 20228.64%121 8.64%121 
Final maturity 20237.63%250 7.63%250 
Final maturity 2024 1
3.43%1,017 3.43%1,017 
Final maturity 20255.13%625 5.13%625 
Final maturity 20263.63%750 3.63%750 
Final maturity 2027 and thereafter 1
5.34%10,112 5.34%10,138 
Other facilities:
Foreign currency notes and loans, various rates and maturities1.21%3,018 1.41%3,189 
InterNotes®, varying maturities through 20513.49%432 3.56%535 
Finance lease obligations 2
554 518 
Unamortized debt discount and issuance costs(360)(365)
Long-term debt due within one year 3
(492)(460)
Long-term debt$16,200 $16,491 
1.Cost includes net fair value hedge adjustment gains of $43 million at March 31, 2021 ($69 million at December 31, 2020). See Note 18 for additional information.
2.See Note 13 for additional information.
3.Presented net of current portion of unamortized debt issuance costs.

Maturities of Long-Term Debt for Next Five Years at Mar 31, 2021
In millions
2021$476 
2022$187 
2023$340 
2024$1,058 
2025$676 
2026$781 

2021 Activity
In the first three months of 2021, the Company issued an aggregate principal amount of $29 million of InterNotes®, and redeemed an aggregate principal amount of $13 million at maturity. In addition, the Company voluntarily repaid an aggregate principal amount of $118 million of InterNotes® with various maturities.

On March 15, 2021, the Company announced a call for $46 million of InterNotes® with various maturities, which settled on April 15, 2021.
2020 Activity
In February 2020, the Company issued €2.25 billion aggregate principal amount of notes (“Euro Notes”). The Euro Notes included €1.0 billion aggregate principal amount of 0.50 percent notes due 2027, €750 million aggregate principal amount of 1.125 percent notes due 2032 and €500 million aggregate principal amount of 1.875 percent notes due 2040. The Euro Notes have a weighted average coupon rate of approximately 1.0 percent. With the net proceeds from the issuance of the Euro Notes, Dow Silicones voluntarily repaid $750 million of principal under a certain third party credit agreement. In addition, the Company redeemed $1.25 billion of 3.0 percent notes issued by the Company with maturity in 2022. As a result, the Company recognized a pretax loss of $85 million on the early extinguishment of debt, included in “Sundry income (expense) – net” in the consolidated statements of income and related to Corporate.

In the first three months of 2020, the Company also issued an aggregate principal amount of $37 million of InterNotes®, and redeemed an aggregate principal amount of $62 million at maturity. In addition, the Company voluntarily repaid an aggregate principal amount of $200 million of InterNotes® with various maturities. As a result, the Company recognized a pretax loss on the early extinguishment of debt of $1 million, included in “Sundry income (expense) – net” in the consolidated statements of income and related to Corporate.

Available Credit Facilities
The following table summarizes the Company's credit facilities:

Committed and Available Credit Facilities at Mar 31, 2021
In millionsCommitted CreditCredit AvailableMaturity DateInterest
Five Year Competitive Advance and Revolving Credit Facility$5,000 $5,000 October 2024Floating rate
Bilateral Revolving Credit Facility200 200 November 2021Floating rate
Bilateral Revolving Credit Facility 300 300 December 2021Floating rate
Bilateral Revolving Credit Facility300 300 December 2021Floating rate
Bilateral Revolving Credit Facility150 150 March 2022Floating rate
Bilateral Revolving Credit Facility100 100 June 2022Floating rate
Bilateral Revolving Credit Facility200 200 September 2022Floating rate
Bilateral Revolving Credit Facility200 200 September 2023Floating rate
Bilateral Revolving Credit Facility250 250 September 2023Floating rate
Bilateral Revolving Credit Facility300 300 September 2023Floating rate
Bilateral Revolving Credit Facility100 100 October 2024Floating rate
Bilateral Revolving Credit Facility100 100 October 2024Floating rate
Bilateral Revolving Credit Facility200 200 November 2024Floating rate
Bilateral Revolving Credit Facility100 100 March 2025Floating rate
Bilateral Revolving Credit Facility250 250 March 2025Floating rate
Bilateral Revolving Credit Facility350 350 March 2025Floating rate
Total committed and available credit facilities$8,100 $8,100 

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 three months of 2021. For additional information on the Company's debt covenants and default provisions, see Note 15 to the Consolidated Financial Statements included in the 2020 10-K.