DEBT (Tables)

3 Months Ended

Mar. 31, 2024

Debt Disclosure [Abstract]

Schedule of Short-term Debt

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

In millions	March 31, 2024		December 31, 2023
Loans payable (1)	$	342	$	280
Commercial paper (2)	609		1,496
(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 5.23 percent and 5.43 percent at March 31, 2024, and December 31, 2023, respectively.

Summary of long-term debt

A summary of long-term debt was as follows:

In millions	Interest Rate	March 31, 2024		December 31, 2023
Long-term debt
Hydrogenics promissory notes, due 2024 and 2025	—%	$	160	$	160
Term loan, due 2025 (1) (2)	Variable	500		1,150
Senior notes, due 2025 (3)	0.75%	500		500
Atmus term loan, due 2027 (4)	Variable	—		600
Debentures, due 2027	6.75%	58		58
Debentures, due 2028	7.125%	250		250
Senior notes, due 2029	4.90%	500		—
Senior notes, due 2030 (3)	1.50%	850		850
Senior notes, due 2034	5.15%	750		—
Senior notes, due 2043	4.875%	500		500
Senior notes, due 2050	2.60%	650		650
Senior notes, due 2054	5.45%	1,000		—
Debentures, due 2098 (5)	5.65%	165		165
Other debt		90		94
Unamortized discount and deferred issuance costs		(100)		(72)
Fair value adjustments due to hedge on indebtedness		(111)		(96)
Finance leases		122		111
Total long-term debt		5,884		4,920
Less: Current maturities of long-term debt		113		118
Long-term debt		$	5,771	$	4,802
(1) During the first three months of 2024, we paid down $650 million of the term loan.
(2) In 2023, we entered into a series of interest rate swaps in order to trade a portion of the floating rate debt into fixed rate. See "Interest Rate Risk" in NOTE 13, "DERIVATIVES," for additional information.
(3) In 2021, we entered into a series of interest rate swaps to effectively convert debt from a fixed rate to floating rate. See "Interest Rate Risk" in NOTE 13, "DERIVATIVES," for additional information.
(4) See NOTE 14, "ATMUS DIVESTITURE," for additional information.
(5) The effective interest rate is 7.48 percent.

On February 20, 2024, we issued $2.25 billion aggregate principal amount of senior unsecured notes consisting of $500 million aggregate principal amount of 4.90 percent senior unsecured notes due in 2029, $750 million aggregate principal amount of 5.15 percent senior unsecured notes due in 2034 and $1.0 billion aggregate principal amount of 5.45 percent senior unsecured notes due in 2054. We received net proceeds of $2.2 billion. The senior unsecured notes pay interest semi-annually on February 20 and August 20, commencing on August 20, 2024. The indenture governing the senior unsecured notes contains covenants that, among other matters, limit (i) our ability to consolidate or merge into, or sell, assign, convey, lease, transfer or otherwise dispose of all or substantially all of our and our subsidiaries' assets to another person, (ii) our and certain of our subsidiaries' ability to create or assume liens and (iii) our and certain of our subsidiaries' ability to engage in sale and leaseback transactions.

Principal repayments on long-term debt

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

In millions	2024		2025		2026		2027		2028
Principal payments	$	101	$	1,128	$	41	$	76	$	267

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	March 31, 2024		December 31, 2023
Fair value of total debt (1)	$	6,491	$	6,375
Carrying value of total debt	6,835		6,696
(1) The fair value of debt is derived from Level 2 input measures.