10.Debt

(In millions)



	December 31,
	2018		2017

Current portion of long-term debt	$	4	$	379

Long-term debt
Debentures, 1.5%, due 2018			$	375
Debentures, 6.625%, due 2019				245
Debentures, 4.25%, due 2020	$	291		288
Debentures, 8.875%, due 2021		65		66
Debentures, 2.90%, due 2022		373		373
Debentures, 3.70%, due 2023		249		249
Medium-term notes, average rate 7.66%, due through 2023		45		45
Debentures, 7.00%, due 2024		100		99
Yen-denominated Debentures, .698%, due 2024		191		185
Yen-denominated Debentures, .722%, due 2025		90
Yen-denominated Debentures, .992%, due 2027		426		414
Yen-denominated Debentures, 1.043%, due 2028		276
Debentures, 6.85%, due 2029		164		166
Yen-Denominated Debentures, 1.219%, due 2030		226
Debentures, callable, 7.25%, due 2036		248		248
Debentures, 4.70%, due 2037		295		248
Yen-denominated Debentures, 1.583%, due 2037		91		85
Debentures, 5.75%, due 2040		395		397
Debentures, 4.75%, due 2042		496		496
Debentures, 5.35%, due 2048		543
Debentures, 4.375%, due 2057		742		743
Debentures, 5.85%, due 2068		296
Other, average rate 5.08%, due through 2043		396		406
Total long-term debt		5,998		5,128
Less current portion of long-term debt		4		379
Long-term debt	$	5,994	$	4,749

Corning did not have outstanding commercial paper at December 31, 2018 and 2017.

In the third quarter of 2018, Corning amended and restated its revolving credit agreement (the “Revolving Credit Agreement”). The Revolving Credit Agreement provides a committed $1.5 billion unsecured multi-currency line of credit and expires August 15, 2023. At December 31, 2018, there were no outstanding amounts under the Revolving Credit Agreement.

Based on borrowing rates currently available to us for loans with similar terms and maturities, the fair value of long-term debt was $6.0 billion at December 31, 2018 and $5.1 billion at December 31, 2017. The Company measures the fair value of its long-term debt using Level 2 inputs based primarily on current market yields for its existing debt traded in the secondary market.

The following table shows debt maturities by year at December 31, 2018 (in millions)*:



2019		2020		2021		2022		2023		Thereafter
$	4	$	305	$	68	$	381	$	420	$	4,856

*Excludes interest rate swap gains and bond discounts.

10.Debt (continued)

Debt Issuances and Retirements

2018

In the second quarter of 2018, Corning issued three Japanese yen-denominated debt securities (the “Notes”), as follows:

¥10 billion 0.722% senior unsecured notes with a maturity of 7 years;

¥30.5 billion 1.043% senior unsecured notes with a maturity of 10 years; and

¥25 billion 1.219% senior unsecured notes with a maturity of 12 years.

The proceeds from the Notes were received in Japanese yen and converted to U.S. dollars on the date of issuance. The net proceeds received in U.S. dollars, after deducting offering expenses, were $596 million. Payments of principle and interest on the Notes will be in Japanese yen, or should yen be unavailable due to circumstances beyond Corning’s control, a U.S. dollar equivalent. The net proceeds of $596 million will be used for general corporate purposes.

In the fourth quarter of 2018, Corning issued three unsecured long-term notes as follows:

$50 million 4.70% senior unsecured notes with a maturity of 19 years;

$550 million 5.35% senior unsecured notes with a maturity of 30 years; and

$300 million 5.85% senior unsecured notes with a maturity of 50 years.

The net proceeds of $889 million will be used for general corporate purposes. We can redeem these notes at any time, subject to certain terms and conditions.

In the fourth quarter of 2018, Corning redeemed $250 million of 6.625% Notes due 2019, paying a nominal call premium. The bond redemption incurred an insignificant loss during the fourth quarter of 2018.

2017

In the third quarter of 2017, Corning issued three Japanese yen-denominated debt securities (the “Notes”), as follows:

¥21 billion 0.698% senior unsecured notes with a maturity of 7 years;

¥47 billion 0.992% senior unsecured notes with a maturity of 10 years; and

¥10 billion 1.583% senior unsecured notes with a maturity of 20 years.

The proceeds from these Notes were received in Japanese yen and converted to U.S. dollars on the date of issuance. The net proceeds received in U.S. dollars, after deducting offering expenses, was approximately $700 million. Payments of principal and interest on the Notes will be in Japanese yen, or should yen be unavailable due to circumstances beyond Corning’s control, a U.S. dollar equivalent. The net proceeds of $700 million were made available for general corporate purposes.

In the fourth quarter of 2017, Corning issued $750 million of 4.375% senior unsecured notes that mature on November 15, 2057. The net proceeds of $743 million will be used for general corporate purposes. We can redeem these notes at any time, subject to certain terms and conditions.

On a quarterly basis, Corning will recognize the transaction gains and losses resulting from changes in the JPY/USD exchange rate in the Other expense, net line of the Consolidated Statements of Income (Loss). Cash proceeds from the offerings and payments for debt issuance costs are disclosed as financing activities, and cash payments to bondholders for interest will be disclosed as operating activities, in the Consolidated Statements of Cash Flows.