DEBT (Tables)

6 Months Ended

Jun. 30, 2023

Debt Disclosure [Abstract]

Schedule of Short-term Debt

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

In millions	June 30, 2023		December 31, 2022
Loans payable (1)	$	419	$	210
Commercial paper (2)	1,617		2,574
(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 5.14 percent and 4.27 percent at June 30, 2023 and December 31, 2022, respectively.

Summary of long-term debt

A summary of long-term debt was as follows:

In millions	Interest Rate	June 30, 2023		December 31, 2022
Long-term debt
Senior notes, due 2023 (1)	3.65%	$	500	$	500
Hydrogenics promissory notes, due 2024 and 2025 (2)	—%	160		—
Term loan, due 2025 (3)	Variable	1,400		1,550
Senior notes, due 2025 (4)	0.75%	500		500
Atmus revolving credit facility, due 2027 (5)	Variable	50		—
Atmus term loan, due 2027 (5)	Variable	600		—
Debentures, due 2027	6.75%	58		58
Debentures, due 2028	7.125%	250		250
Senior notes, due 2030 (4)	1.50%	850		850
Senior notes, due 2043	4.875%	500		500
Senior notes, due 2050	2.60%	650		650
Debentures, due 2098 (6)	5.65%	165		165
Other debt		68		121
Unamortized discount and deferred issuance costs		(77)		(64)
Fair value adjustments due to hedge on indebtedness		(121)		(122)
Finance leases		111		113
Total long-term debt		5,664		5,071
Less: Current maturities of long-term debt		575		573
Long-term debt		$	5,089	$	4,498
(1) Senior notes, due 2023, are classified as current maturities of long-term debt.
(2) See NOTE 16, "ACQUISITIONS," to our Condensed Consolidated Financial Statements for additional information.
(3) During the first six months of 2023, we paid down $150 million of the term loan.
(4) In 2021, we entered into a series of interest rate swaps to effectively convert from a fixed rate to floating rate. See "Interest Rate Risk" in NOTE 13, "DERIVATIVES," to our Condensed Consolidated Financial Statements for additional information.
(5) See "Atmus Credit Agreement" section below for additional information.
(6) The effective interest rate is 7.48 percent.

Principal repayments on long-term debt

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

In millions	2023		2024		2025		2026		2027
Principal payments	$	550	$	98	$	2,016	$	9	$	715

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	June 30, 2023		December 31, 2022
Fair value of total debt (1)	$	7,280	$	7,400
Carrying value of total debt	7,700		7,855
(1) The fair value of debt is derived from Level 2 input measures.