DEBT (Tables)

9 Months Ended

Oct. 03, 2021

Debt Disclosure [Abstract]

Schedule of Short-term Debt

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

In millions	October 3, 2021			December 31, 2020
Loans payable (1)	$	85		$	169
Commercial paper	200		(2)	323		(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 0.14 percent at October 3, 2021 and included $200 million of borrowings under the U.S. program.
(3) The weighted-average interest rate, inclusive of all brokerage fees, was negative 0.01 percent at December 31, 2020 and included $123 million of borrowings under the Europe program that were negative 0.34 percent and $200 million of borrowings under the U.S. program at 0.19 percent.

Summary of long-term debt

A summary of long-term debt was as follows:

In millions	Interest Rate	October 3, 2021		December 31, 2020
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	1.50%	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		124		132
Unamortized discount and deferred issuance costs		(68)		(72)
Fair value adjustments due to hedge on indebtedness		39		48
Finance leases		89		91
Total long-term debt		3,657		3,672
Less: Current maturities of long-term debt		55		62
Long-term debt		$	3,602	$	3,610
(1) In the third quarter of 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%.

Principal repayments on long-term debt

Principal payments required on long-term debt during the next five years are as follows:

In millions	2021		2022		2023		2024		2025
Principal payments	$	16	$	58	$	536	$	31	$	507

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

The following table summarizes the gains and (losses), net of tax, recognized in "Other comprehensive income":

In millions	Three months ended				Nine months ended
Type of Swap	October 3, 2021		September 27, 2020		October 3, 2021		September 27, 2020
Interest rate locks	$	—	$	17	$	28	$	(52)

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	October 3, 2021		December 31, 2020
Fair value of total debt (1)	$	4,285	$	4,665
Carrying value of total debt	3,942		4,164
(1) The fair value of debt is derived from Level 2 input measures.