10-K
UNION CARBIDE CORP /NEW/ filed this Form 10-K on 02/15/2018
Entire Document
 

Total estimated amortization expense for the next five fiscal years is as follows:

Estimated Amortization Expense for Next Five Years
In millions
2018
$
6

2019
$
6

2020
$
6

2021
$
4

2022
$
2



NOTE 13 - NOTES PAYABLE AND LONG-TERM DEBT
Notes Payable at Dec 31
 
 
In millions
2017
2016
Notes payable to related companies
$
28

$
25

Year-end average interest rates
2.56
%
2.07
%

 
Long-Term Debt at Dec 31

2017 Average Rate
2017
2016 Average Rate
2016
 
 
In millions
 
Promissory notes and debentures:
 
 
 
 
 
Debentures due 2023
7.875
%
$
175

7.875
%
$
175

 
Debentures due 2025
6.79
%
12

6.79
%
12

 
Debentures due 2025
7.50
%
150

7.50
%
150

 
Debentures due 2096
7.75
%
135

7.75
%
135

 
Capital lease obligations

8


9

 
Unamortized debt discount and issuance costs

(5
)

(5
)
 
Long-term debt due within one year

(1
)

(1
)
 
Total long-term debt
 
$
474

 
$
475


Maturities of Long-Term Debt for Next Five Years at Dec 31, 2017
In millions
2018
$
1

2019
$
1

2020
$
1

2021
$
1

2022
$
1


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.



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