v3.22.4
NOTES PAYABLE AND LONG-TERM DEBT (Notes)
 12 Months Ended
Dec. 31, 2022
Debt Disclosure [Abstract]  
Notes Payable and Long-term Debt NOTES PAYABLE AND LONG-TERM DEBT
Notes Payable at Dec 31
In millions20222021
Notes payable to related companies$51 $30 
Notes payable - other4 — 
Total notes payable$55 $30 
Year-end average interest rates1.02 %1.43 %

Long-Term Debt at Dec 31
2022 Average Rate20222021 Average Rate2021
In millions
Promissory notes and debentures:
Debentures due 20237.875 %$129 7.875 %$129 
Debentures due 20256.79 %12 6.79 %12 
Debentures due 20257.50 %113 7.50 %113 
Debentures due 20967.75 %135 7.75 %135 
Finance lease obligations 1
7 9 
Unamortized debt discount and issuance costs(2)(3)
Long-term debt due within one year(132)(3)
Total long-term debt$262 $392 
1.See Note 14 for additional information.

Maturities of Long-Term Debt for Next Five Years at Dec 31, 2022
In millions
2023$132 
2024$3 
2025$127 
2026$— 
2027$— 

2020 Activity
In 2020, TDCC concluded a cash tender offer that included $83 million aggregate principal amount of certain notes issued by the Corporation. As a result of the tender offer, the Corporation retired $46 million of 7.875 percent notes due 2023 and $37 million of 7.50 percent notes due 2025 and recognized a $19 million loss on the early extinguishment of debt, included in "Sundry income (expense) - net" in the consolidated statements of income.

Letters of Credit
The Corporation utilizes letters of credit to support commitments made in the ordinary course of business. While the terms and amounts of letters of credit change, UCC generally has approximately $6 million of outstanding letters of credit at any given time.

Debt Covenants and Default Provisions
The Corporation's outstanding public debt has been issued under indentures which contain, among other provisions, covenants that the Corporation must comply with while the underlying notes are outstanding. Such covenants are typically based on the Corporation's size and financial position and include, subject to the exceptions and qualifications contained in the indentures, obligations not to (i) allow liens on principal U.S. manufacturing facilities, (ii) enter into sale and lease-back transactions with respect to principal U.S. manufacturing facilities, or (iii) merge into or consolidate with any other entity or sell or convey all or substantially all of its assets. Failure of the Corporation to comply with any of these covenants could, after the passage of any applicable grace period, result in a default under the applicable indenture which would allow the note holders to accelerate the due date of the outstanding principal and accrued interest on the subject notes.