NOTES PAYABLE AND LONG-TERM DEBT

12 Months Ended

Dec. 31, 2015

NOTES PAYABLE AND LONG-TERM DEBT



Notes Payable at December 31 In millions	2015			2014
Notes payable - related companies	$	25		$	43
Year-end average interest rates	1.40		%	0.82		%



Long-Term Debt at December 31	2015					2014
Long-Term Debt at December 31	Average					Average
In millions	Rate		2015			Rate		2014
Promissory notes and debentures:
Debentures due 2023	7.875	%	$	175		7.875	%	$	175
Debentures due 2025	6.79	%	12			6.79	%	12
Debentures due 2025	7.50	%	150			7.50	%	150
Debentures due 2096	7.75	%	135			7.75	%	135
Capital lease obligations	—		10			—		11
Unamortized debt discount and issuance costs (1)	—		(5		)	—		(5		)
Long-term debt due within one year	—		(1		)	—		(1		)
Total long-term debt (1)			$	476				$	477


(1)	Presented in accordance with newly implemented ASU 2015-03. See Note 2 for further information.



Annual Installments on Long-Term Debt for Next Five Years In millions
2016	$	1
2017	$	1
2018	$	1
2019	$	1
2020	$	1

Debt Covenants and Default Provisions

The Corporation's outstanding public debt has been issued under indentures which contain, among other provisions, covenants that the Corporation must comply with while the underlying notes are outstanding. Such covenants are typically based on the Corporation's size and financial position and include, subject to the exceptions and qualifications contained in the indentures, obligations not to (i) allow liens on principal U.S. manufacturing facilities, (ii) enter into sale and lease-back transactions with respect to principal U.S. manufacturing facilities, or (iii) merge into or consolidate with any other entity or sell or convey all or substantially all of its assets. Failure of the Corporation to comply with any of these covenants could, after the passage of any applicable grace period, result in a default under the applicable indenture which would allow the note holders to accelerate the due date of the outstanding principal and accrued interest on the subject notes.