Fair value hedging adjustment

[Table of Contents](#i40ca88ef65884b508d3f9e19d0380e84_7)NOTE 15 - SHORT-TERM BORROWINGS, LONG-TERM DEBT AND AVAILABLE CREDIT FACILITIES The Company's short-term borrowings consist of commercial paper. At June 30, 2022 and December 31, 2021, the Company's short-term borrowings were $661 million and $150 million, respectively. The weighted-average interest rate on commercial paper was 1.77 percent at June 30, 2022 and 0.34 percent at December 31, 2021.  
The following table summarizes the Company's long-term debt:

|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Long-Term Debt | June 30, 2022 | December 31, 2021 |
| In millions | Amount | Weighted Average Rate | Amount | Weighted Average Rate |
| Promissory notes and debentures 1 |  |  |  |  |
|   Final maturity 2023  | $ | 2,800  |  | 4.02  | % | $ | 2,800  |  | 3.89  | % |
|   Final maturity 2025  | 1,850  |  | 4.49  | % | 1,850  |  | 4.49  | % |
|   Final maturity 2026 and thereafter 2 | 6,039  |  | 5.13  | % | 6,050  |  | 5.13  | % |
| Other facilities: |  |  |  |  |
| Finance lease obligations | 2  |  |  | 2  |  |  |
| Less: Unamortized debt discount and issuance costs | 66  |  |  | 70  |  |  |
|  |  |  |  |  |
| Total  | $ | 10,625  |  |  | $ | 10,632  |  |  |

1. Represents senior unsecured notes (the "2018 Senior Notes"), which are senior unsecured obligations of the Company.2. Includes fair value hedging adjustment of $11 million related to the Company's interest rate swap agreements. See Note 21 for additional information.  
Principal Payments of long-term debt for the remainder of 2022 and the five succeeding fiscal years are as follows:

|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Maturities of Long-Term Debt for Next Five Years at June 30, 2022 | Total |
| In millions |
| Remainder of 2022 | $ | —  |  |
| 2023 | $ | 2,800  |  |
| 2024 | $ | —  |  |
| 2025 | $ | 1,850  |  |
| 2026 | $ | —  |  |
| 2027 | $ | —  |  |

  
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 22. 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, not including long-term debt due within one year, was $10,680 million and $12,595 million at June 30, 2022 and December 31, 2021, respectively.  
Available Committed Credit FacilitiesThe following table summarizes the Company's credit facilities:

|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Committed and Available Credit Facilities at June 30, 2022 |  |  |
| In millions | Effective Date | Committed Credit | Credit Available | Maturity Date | Interest |
| Revolving Credit Facility, Five-year | April 2022 | $ | 2,500  |  | $ | 2,488  |  | April 2027 | Floating Rate |
| 364-day Revolving Credit Facility | April 2022 | 1,000  |  | 1,000  |  | April 2023 | Floating Rate |
| Total Committed and Available Credit Facilities |  | $ | 3,500  |  | $ | 3,488  |  |  |  |

  
In July 2022, the Company drew down $600 million under the 364-day Revolving Credit Facility in order to facilitate certain intercompany internal restructuring steps related to the M&M Divestiture. The Company expects the borrowing to be repaid by the end of 2022.  
Intended Rogers AcquisitionOn November 22, 2021, the Company entered into a two-year senior unsecured committed term loan agreement in the amount of $5.2 billion (the "2021 Term Loan Facility"). The 2021 Term Loan Facility is intended to fund the Intended Rogers Acquisition. The debt covenants and default provisions in the 2021 Term Loan Facility are consistent with those of the Five-Year Revolving Credit Facility and the $1 billion Revolving Credit Facility.27  

