Debt And Lines Of Credit (Note)

12 Months Ended

Dec. 31, 2020

Debt And Lines Of Credit [Note Text Block]

Amounts related to early debt extinguishment during the years ended December 31, 2020, 2019 and 2018 were as follows:


In millions	2020		2019		2018
Early debt reductions (a)	$	1,640	$	614	$	780
Pre-tax early debt extinguishment costs (b)	196		21		10

(a)Reductions related to notes with interest rates ranging from 3.00% to 9.50% with original maturities from 2021 to 2048 for the years ended December 31, 2020, 2019 and 2018.

(b)Amounts are included in Restructuring and other charges in the accompanying consolidated statements of operations.

The Company’s early debt reductions in 2020 were comprised of debt tenders of $406 million with an interest rate of 7.50% due in 2021, $658 million with an interest rate of 3.65% due in 2024, $127 million with an interest rate of 3.80% due in 2026, and $297 million with an interest rate of 3.00% due in 2027. In addition to these debt tenders, the Company had early debt extinguishments of approximately

$152 million in open market repurchases related to debt with interest rates ranging from 3.00% to 4.40% and maturities dates from 2026 to 2048.

The Company had debt issuances in 2020 of $583 million related primarily to the AR securitization program and international debt. In addition to the early debt reductions, the Company had debt reductions of $638 million in 2020 related primarily to the AR securitization program, commercial paper, and international debt.

The borrowing capacity of the Company's commercial paper program is $1.0 billion. Under the terms of this program, individual maturities on borrowings may vary, but not exceed one year from the date of issue. Interest bearing notes may be issued either as fixed or floating rate notes. The Company had no borrowings outstanding as of December 31, 2020, and $30 million of borrowings outstanding as of December 31, 2019, under this program.

In March 2020, the Company entered into a $750 million contractually committed 364-day revolving credit agreement with a syndicate of banks and other financial institutions which augments the Company's access to liquidity due to macroeconomic conditions at that time and supplements the Company's $1.5 billion five-year credit agreement. In October 2020, the Company extended the expiration date of the $1.5 billion credit agreement from December 2021 to December 2022. As of December 31, 2020, the Company had no borrowings outstanding under either the $750 million revolving credit agreement or the $1.5 billion credit agreement.

In April 2020, the Company's receivable securitization program was amended from an uncommitted financing arrangement to a committed financing arrangement with a borrowing limit up to $550 million based on eligible receivables balances that expires in April 2022. This was done in response to the economic environment related to COVID-19 to further strengthen the Company’s liquidity position. As of December 31, 2020, the Company had no borrowings outstanding under the program. After considering the Company’s liquidity position in relation to COVID-19 and the current economic environment, the Company's receivable securitization program was amended from a committed financing arrangement to an uncommitted financing arrangement in February 2021 with the borrowing limit and expiration date remaining unchanged.

A summary of long-term debt follows:


In millions at December 31	2020		2019
7.500% notes – due 2021	$	—	$	406
6.875% notes – due 2023	94		94
3.650% notes – due 2024	—		658
7.350% notes – due 2025	44		44
7.750% notes – due 2025	31		31
3.800% notes – due 2026	517		645
7.200% notes – due 2026	58		58
6.400% notes – due 2026	5		5
3.000% notes – due 2027	477		803
7.150% notes – due 2027	7		7
3.550% notes – due 2029	200		200
6.875% notes – due 2029	37		37
5.000% notes – due 2035	600		600
6.650% notes – due 2037	4		4
8.700% notes – due 2038	265		265
7.300% notes – due 2039	722		722
6.000% notes – due 2041	585		585
4.800% notes – due 2044	800		800
5.150% notes – due 2046	700		700
4.400% notes – due 2047	1,084		1,158
4.350% notes – due 2048	938		986
Floating rate notes – due 2020 – 2024 (a)	245		339
Environmental and industrial development bonds – due 2022 – 2035 (b)	579		552
Total principal	7,992		9,699
Capitalized leases	95		100
Premiums, discounts, and debt issuance costs	(80)		(88)
Terminated interest rate swaps	80		—
Interest rate swaps	—		46
Other (c)	6		8
Total (d)	8,093		9,765
Less: current maturities	29		168
Long-term debt	$	8,064	$	9,597

(a)The weighted average interest rate on these notes was 1.3% in 2020 and 3.1% in 2019.

(b)The weighted average interest rate on these bonds was 3.5% in 2020 and 4.4% in 2019.

(c)Includes $4 million and $7 million of fair market value adjustments as of December 31, 2020 and 2019, respectively.

(d)The fair market value was approximately $10.5 billion at December 31, 2020 and $10.9 billion at December 31, 2019.

At December 31, 2020, contractual obligations for future payments of debt maturities (including finance lease liabilities disclosed in Note 1 0 - Leases and excluding the timber monetization structures disclosed in Note 1 5 - Variable Interest Entities) by calendar year were as follows over the next five years: 2021 – $29 million; 2022 – $199 million; 2023 – $361 million; 2024 – $152 million; and 2025 – $209 million.

The Company’s financial covenants require the maintenance of a minimum net worth, as defined in our debt agreements, of $9 billion and a total debt-to-capital ratio of less than 60%. Net worth is defined as the sum of common stock, paid-in capital and retained earnings, less treasury stock plus any cumulative goodwill impairment charges. The calculation also excludes accumulated other comprehensive income/loss and both the current and long-term Nonrecourse Financial Liabilities of Variable Interest Entities. The total debt-to-capital ratio is defined as total debt divided by the sum of total debt plus net worth. As of December 31, 2020, we were in compliance with our debt covenants.