NOTES PAYABLE AND LONG-TERM DEBT

12 Months Ended

Dec. 31, 2019

NOTES PAYABLE AND LONG-TERM DEBT



Notes Payable at Dec 31
In millions	2019			2018
Notes payable to banks and other lenders	$	6		$	1
Notes payable to related companies	32			28
Total notes payable	$	38		$	29
Year-end average interest rates	1.88		%	3.27		%



Long-Term Debt at Dec 31	2019 Average Rate		2019			2018 Average Rate		2018
Long-Term Debt at Dec 31
In millions
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
Finance lease obligations ¹			6					7
Unamortized debt discount and issuance costs			(4		)			(5		)
Long-term debt due within one year			(1		)			(1		)
Total long-term debt			$	473				$	473


1.	See Note 15 for additional information.



Maturities of Long-Term Debt for Next Five Years at Dec 31, 2019
In millions
2020	$	1
2021	$	1
2022	$	1
2023	$	176
2024	$	1

Letters of Credit

The Corporation utilizes letters of credit to support commitments made in the ordinary course of business. While the terms and amounts of letters of credit change, UCC generally has approximately $5 million of outstanding letters of credit at any given time.

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.