2023

[Table of Contents](#ib75a44f638b042a5a7472d3f3be80b22_7)Principal payments required on long-term debt during the next five years are as follows: 

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| In millions |  | 2022 |  | 2023 |  | 2024 |  | 2025 |  | 2026 |
| Principal payments |  | $ | 13  |  |  | $ | 563  |  |  | $ | 43  |  |  | $ | 2,509  |  |  | $ | 55  |  |
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Interest Rate Risk Beginning in the second half of 2021, we entered into a series of interest rate swaps to effectively convert our $500 million senior notes, due in 2025, from a fixed rate of 0.75 percent to a floating rate equal to the three-month LIBOR plus a spread, and we also entered into a series of interest rate swaps to effectively convert $765 million of our $850 million senior notes, due in 2030, from a fixed rate of 1.50 percent to a floating rate equal to the three-month LIBOR plus a spread. The following table summarizes the gains and losses:

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|  |  | Three months ended |  | Nine months ended |
| In millions |  | September 30, 2022 |  | October 3, 2021 |  | September 30, 2022 |  | October 3, 2021 |
| Type of Swap |  | Gain (Loss) on Swaps |  | Gain (Loss) on Borrowings |  | Gain (Loss) on Swaps |  | Gain (Loss) on Borrowings |  | Gain (Loss) on Swaps |  | Gain (Loss) on Borrowings |  | Gain (Loss) on Swaps |  | Gain (Loss) on Borrowings |
| Interest rate swaps(1) |  | $ | (47) |  |  | $ | 45  |  |  | $ | —  |  |  | $ | —  |  |  | $ | (158) |  |  | $ | 159  |  |  | $ | —  |  |  | $ | —  |  |
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| (1) The difference between the gain (loss) on swaps and borrowings represents hedge ineffectiveness. |  |  |  |  |
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We have interest rate lock agreements to reduce the variability of the cash flows of the interest payments on a total of $500 million of fixed rate debt forecast to be issued in 2023 to replace our senior notes at maturity. The following table summarizes the gains, net of tax, recognized in other comprehensive income:

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| In millions |  | Three months ended |  | Nine months ended |
| Type of Swap |  | September 30,2022 |  | October 3,2021 |  | September 30,2022 |  | October 3,2021 |
| Interest rate locks |  | $ | 21  |  |  | $ | —  |  |  | $ | 103  |  |  | $ | 28  |  |

Fair Value of DebtBased 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: 

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| In millions |  | September 30,2022 |  | December 31,2021 |
| Fair value of total debt (1) |  | $ | 7,635  |  |  | $ | 4,461  |  |
| Carrying value of total debt |  | 8,115  |  |  | 4,159  |  |
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| (1) The fair value of debt is derived from Level 2 input measures.  |

Shelf RegistrationAs a well-known seasoned issuer, we filed an automatic shelf registration of an undetermined amount of debt and equity with the SEC on February 8, 2022. Under this shelf registration we may offer, from time to time, debt securities, common stock, preferred and preference stock, depositary shares, warrants, stock purchase contracts and stock purchase units.Filtration Contingent Debt AgreementOn September 30, 2022, certain of our subsidiaries entered into a $1.0 billion credit agreement (Credit Agreement), consisting of a $400 million revolving credit facility and a $600 million term loan facility (Facilities), in anticipation of the separation of our filtration business. Borrowings under the Credit Agreement will not become available under the Credit Agreement unless and until, among other things, there is a sale to the public of shares in our subsidiary that holds the filtration business (Parent Borrower). The Credit Agreement will automatically terminate if no such public sale of shares of Parent Borrower occurs on or prior to March 30, 2023. Borrowings under the Credit Agreement would be available to Parent Borrower and one or more of its subsidiaries (Borrower). If borrowings become available under the Credit Agreement, the Facilities would mature on September 30, 2027.19
