XML 27 R15.htm IDEA: XBRL DOCUMENT
v3.20.2

DEBT | 9 Months Ended
--- | ---
Sep. 30, 2020
Debt Instruments [Abstract] |
DEBT | DEBT Long-term debt (including finance lease obligations) as of September 30, 2020 and December 31, 2019 consisted of the following:
| September 30, 2020 |  | December 31, 2019
4.75% Senior Notes due January 2020 | $ | — |  |  | $ | 500 |
2.50% Senior Notes due March 2020 | — |  |  | 300 |
4.70% Senior Notes due April 2021 | 551 |  |  | 554 |
4.25% Senior Notes due April 2024 | 317 |  |  | 308 |
3.50% Senior Notes due March 2025 | 623 |  |  | 593 |
3.45% Senior Notes due June 2026 | 513 |  |  | 490 |
4.20% Senior Notes due June 2029 | 499 |  |  | 499 |
2.95% Senior Notes due June 2030 | 798 |  |  | 798 |
2.80% Senior Notes due June 2031 | 549 |  |  | — |
6.95% Senior Notes due July 2037 | 175 |  |  | 175 |
5.75% Senior Notes due January 2040 | 245 |  |  | 245 |
4.70% Senior Notes due March 2045 | 300 |  |  | 300 |
Other | 32 |  |  | 34 |
Debt issuance costs | (29) |  |  | (26) |
Total long-term debt | 4,573 |  |  | 4,770 |
Less: Current portion of long-term debt | 555 |  |  | 804 |
Total long-term debt, net of current portion | $ | 4,018 |  |  | $ | 3,966 |
Retirement of Debt During January 2020, the Company redeemed in full the outstanding indebtedness under the Company's senior notes due January 2020 and senior notes due March 2020 using proceeds from the issuance, in December 2019, of the 2.95% senior notes due June 2030, along with cash on hand. For the nine months ended September 30, 2020, the Company recorded a loss on retirement of debt, principally comprised of premiums paid, of $1 million in other income, net. May 2020 Senior Notes Offering During May 2020, the Company completed a senior notes offering, consisting of $550 million aggregate principal amount of 2.80% senior notes due June 2031 (the "2031 Senior Notes"), which were issued at an original issue discount of $1 million. The 2031 Senior Notes are unsecured obligations of the Company that rank equally with the Company's other senior unsecured obligations. The 2031 Senior Notes do not have a sinking fund requirement. The Company incurred $5 million of debt issuance costs associated with the 2031 Senior Notes, which are included as a reduction to the carrying amount of long-term debt and which are being amortized over the term of the related debt. During October 2020, the Company issued a redemption notice to the holders of the Company's $550 million aggregate principal amount of 4.70% senior notes due April 2021. The Company intends to use the net proceeds from the 2031 Senior Notes, along with cash on hand, to satisfy the redemption. See Note 18 for further details. Credit Facilities As of September 30, 2020, the Company had cash and cash equivalents on hand of $1,605 million and had $1.3 billion of borrowing capacity available under its existing credit facilities, including $529 million available under its secured receivables credit facility and $750 million available under its senior unsecured revolving credit facility. There were no outstanding borrowings under the Company's existing credit facilities as of September 30, 2020. The secured receivables credit facility was amended in October 2020 in order to extend the maturity dates for each underlying commitment by one year, while maintaining the borrowing capacity at $600 million. See Note 18 for further details. The senior unsecured revolving credit facility matures in March 2023. For further details regarding the credit facilities, see Note 13 to the audited consolidated financial statements in the Company's 2019 Annual Report on Form 10-K. The secured receivables credit facility is subject to customary affirmative and negative covenants, and certain financial covenants with respect to the receivables that comprise the borrowing base and secure the borrowings under the facility. The Company's senior unsecured revolving credit facility is also subject to certain financial covenants and limitations on indebtedness. On April 30, 2020, the Company entered into an amendment to the senior unsecured revolving credit facility in order to provide for increased flexibility. Pursuant to the amendment, the leverage ratio covenant (as defined in the senior unsecured revolving credit facility) was increased as follows:
As of: |  | Applicable Covenant:
September 30, 2020 |  | no more than 5.5 times EBITDA
December 31, 2020 |  | no more than 6.5 times EBITDA
March 31, 2021 |  | no more than 6.25 times EBITDA
June 30, 2021 |  | no more than 4.5 times EBITDA
Thereafter, the leverage ratio covenant reverts to no more than 3.5 times EBITDA. During the period that the increased covenant applies, which period may be terminated early by the Company provided that it is in compliance with the historical 3.5 times EBITDA leverage ratio, the amended credit agreement contains certain additional limitations and restrictions including, but not limited to, repurchases of the Company's common stock, the amount of funds that can be used on business acquisitions, the incurrence of secured indebtedness and the payment of dividends. As of September 30, 2020, the Company was in compliance with all such applicable financial covenants. Interest on the amended senior unsecured revolving credit facility is subject to a pricing schedule that can fluctuate based on changes in the Company's credit ratings and its leverage ratio. During the nine months ended September 30, 2020, the Company borrowed $100 million under its secured receivables credit facility and $100 million under its senior unsecured revolving credit facility, both of which were repaid prior to September 30, 2020. Maturities of Long-Term Debt As of September 30, 2020, long-term debt matures as follows:
Year Ending December 31, |
Remainder of 2020 | $ | 1 |
2021 | 553 |
2022 | 3 |
2023 | 2 |
2024 | 302 |
Thereafter | 3,696 |
Total maturities of long-term debt | 4,557 |
Unamortized discount | (11) |
Debt issuance costs | (29) |
Fair value basis adjustments attributable to hedged debt | 56 |
Total long-term debt | 4,573 |
Current portion of long-term debt | 555 |
Total long-term debt, net of current portion | $ | 4,018 |

X
- Definition The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -URI http://asc.fasb.org/topic&trid=2208564 + Details
Name: | us-gaap_DebtDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | us-gaap_DebtInstrumentsAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration