Short-Term and Long-Term Borrowings (Tables)

12 Months Ended

Dec. 31, 2016



December 31,	2016		2015
Commercial paper	$	386	$	—
Other loans - various currencies	39		49
Long-term debt payable within one year	4		1,115
Capital lease obligations	—		1
	$	429	$	1,165

Debt Disclosure

SHORT-TERM AND LONG-TERM BORROWINGS

The following table summarizes the company's short-term borrowings and capital lease obligations:



December 31,	2016		2015
Commercial paper	$	386	$	—
Other loans - various currencies	39		49
Long-term debt payable within one year	4		1,115
Capital lease obligations	—		1
	$	429	$	1,165

The estimated fair value of the company's short-term borrowings, including interest rate financial instruments, was determined using Level 2 inputs within the fair value hierarchy, as described in Note 1. Based on quoted market prices for the same or similar issues, or on current rates offered to the company for debt of the same remaining maturities, the fair value of the company's short-term borrowings was $430 and $1,190 at December 31, 2016 and 2015, respectively.

Unused bank credit lines were approximately $7,900 and $4,900 at December 31, 2016 and 2015, respectively. These lines are available to support short-term liquidity needs and general corporate purposes including letters of credit and have a remaining life of up to two years. Outstanding letters of credit were $188 and $203 at December 31, 2016 and 2015, respectively. These letters of credit support commitments made in the ordinary course of business.

The weighted-average interest rate on short-term borrowings outstanding at December 31, 2016 and 2015 was 2.2 percent and 4.1 percent, respectively. The decrease in the interest rate for 2016 was primarily due to lower long-term debt maturities within one year.

The following table summarizes the company's long-term borrowings and capital lease obligations:



December 31,	2016		2015
U.S. dollar:
Medium-term notes due 2038 – 2041¹	$	111	$	111
1.95% notes due 2016²	—		348
2.75% notes due 2016²	—		223
5.25% notes due 2016²	—		541
6.00% notes due 2018³	1,290		1,314
5.75% notes due 2019	500		499
4.625% notes due 2020	999		998
3.625% notes due 2021	999		999
4.25% notes due 2021	499		499
2.80% notes due 2023	1,250		1,250
6.50% debentures due 2028	299		299
5.60% notes due 2036	396		396
4.90% notes due 2041	494		494
4.15% notes due 2043	749		749
Term loan due 2019	500		—
Other loans^2,4	22		25
Other loans- various currencies²	29		32
	8,137		8,777
Less short-term portion of long-term debt	4		1,115
	8,133		7,662
Less debt issuance costs	35		32
	8,098		7,630
Capital lease obligations	9		12
Total	$	8,107	$	7,642


^1.	Average interest rates on medium-term notes were 0.6 percent and 0.1 percent at December 31, 2016 and 2015, respectively.


^2.	Includes long-term debt due within one year.


^3.	During 2008, the interest rate swap agreement associated with these notes was terminated. The gain will be amortized over the remaining life of the bond, resulting in an effective yield of 3.85 percent.


^4.	Average interest rates on other loans were 4.3 percent at December 31, 2016 and 2015.

In connection with the spin-off of Chemours, as discussed in Note 3, the company received a dividend from Chemours in May 2015 of $3,923 comprised of a cash distribution of $3,416 and a distribution in-kind of $507 of 7 percent senior unsecured notes due 2025 (Chemours Notes Received).

In 2015, DuPont exchanged the Chemours Notes Received for $488 of company debt due in 2016 as follows: $152 of 1.95 percent notes, $277 of 2.75 percent notes, and $59 of 5.25 percent notes. The company paid a premium of $20, recorded in interest expense in the company's Consolidated Income Statements in 2015, in connection with the early retirement of the $488 of 2016 notes. This debt for debt exchange was considered an extinguishment.

Maturities of long-term borrowings are $1,323, $1,004, $1,003 and $1,503 for the years 2018, 2019, 2020 and 2021, respectively, and $3,300 thereafter.

The estimated fair value of the company's long-term borrowings, was determined using Level 2 inputs within the fair value hierarchy, as described in Note 1. Based on quoted market prices for the same or similar issues, or on current rates offered to the company for debt of the same remaining maturities, the fair value of the company's long-term borrowings was $8,460 and $7,860 at December 31, 2016 and 2015, respectively.

Term Loan Facility

In March 2016, the company entered into a credit agreement that provides for a three-year, senior unsecured term loan facility in the aggregate principal amount of $4,500 (the Term Loan Facility). DuPont may make up to seven term loan borrowings within one year of the closing date and amounts repaid or prepaid are not available for subsequent borrowings. The Term Loan Facility matures in March 2019 at which time all outstanding borrowings, including accrued but unpaid interest, become immediately due and payable.

Under the Term Loan Facility, DuPont can borrow funds at LIBOR plus a spread from 0.75 percent to 1.25 percent (LIBOR Loan Rate) depending on DuPont's long term credit rating. As of December 31, 2016, the company had borrowed $500 at the LIBOR Loan Rate and had unused commitments of $4,000 under the Term Loan Facility.

DuPont has the option of obtaining a same day loan under the Term Loan Facility at an interest rate based on the higher of a) the LIBOR Loan Rate, b) the federal funds effective rate plus 0.5 percent plus a margin from 0.00 percent to 0.25 percent depending on DuPont's long term credit rating (Margin) or c) the prime rate plus Margin.



December 31,	2016		2015
U.S. dollar:
Medium-term notes due 2038 – 2041¹	$	111	$	111
1.95% notes due 2016²	—		348
2.75% notes due 2016²	—		223
5.25% notes due 2016²	—		541
6.00% notes due 2018³	1,290		1,314
5.75% notes due 2019	500		499
4.625% notes due 2020	999		998
3.625% notes due 2021	999		999
4.25% notes due 2021	499		499
2.80% notes due 2023	1,250		1,250
6.50% debentures due 2028	299		299
5.60% notes due 2036	396		396
4.90% notes due 2041	494		494
4.15% notes due 2043	749		749
Term loan due 2019	500		—
Other loans^2,4	22		25
Other loans- various currencies²	29		32
	8,137		8,777
Less short-term portion of long-term debt	4		1,115
	8,133		7,662
Less debt issuance costs	35		32
	8,098		7,630
Capital lease obligations	9		12
Total	$	8,107	$	7,642


^1.	Average interest rates on medium-term notes were 0.6 percent and 0.1 percent at December 31, 2016 and 2015, respectively.


^2.	Includes long-term debt due within one year.


^3.	During 2008, the interest rate swap agreement associated with these notes was terminated. The gain will be amortized over the remaining life of the bond, resulting in an effective yield of 3.85 percent.


^4.	Average interest rates on other loans were 4.3 percent at December 31, 2016 and 2015.