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DEBT | 12 Months Ended
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Dec. 31, 2020
Debt Instruments [Abstract] |
DEBT | DEBT Long-term debt (including finance lease obligations) as of December 31, 2020 and 2019 consisted of the following:
| 2020 |  | 2019
4.75% Senior Notes due January 2020 | $ | — |  |  | $ | 500 |
2.50% Senior Notes due March 2020 | — |  |  | 300 |
4.70% Senior Notes due April 2021 | — |  |  | 554 |
4.25% Senior Notes due April 2024 | 316 |  |  | 308 |
3.50% Senior Notes due March 2025 | 622 |  |  | 593 |
3.45% Senior Notes due June 2026 | 512 |  |  | 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 | 27 |  |  | 34 |
Debt issuance costs | (28) |  |  | (26) |
Total long-term debt | 4,015 |  |  | 4,770 |
Less: Current portion of long-term debt | 2 |  |  | 804 |
Total long-term debt, net of current portion | $ | 4,013 |  |  | $ | 3,966 |
Secured Receivables Credit Facility On October 22, 2020, the Company amended the agreement for its $600 million secured receivables credit facility (the “Secured Receivables Credit Facility”), previously amended in October 2019, to extend the maturity dates for each underlying commitment by one year, while maintaining the borrowing capacity under the facility at $600 million. Under the Secured Receivables Credit Facility, the Company can borrow against a $250 million loan commitment maturing October 2021 and a $250 million loan commitment maturing October 2022, and can issue up to $100 million of letters of credit (see Note 18) through October 2022. Borrowings under the Secured Receivables Credit Facility are collateralized by certain domestic receivables. As of December 31, 2020, interest on the borrowings under the Secured Receivables Credit Facility was based on either commercial paper rates for highly-rated issuers or LIBOR, plus a spread of 0.825% to 0.95%. 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. As of both December 31, 2020 and 2019, there were no outstanding borrowings under the Secured Receivables Credit Facility. Senior Unsecured Revolving Credit Facility The Company is party to a $750 million senior unsecured revolving credit facility (the “Credit Facility” or "Senior Unsecured Revolving Credit Facility") which matures in March 2023. Under the Credit Facility, the Company can issue letters of credit totaling $150 million (see Note 18). Issued letters of credit reduce the available borrowing capacity under the Credit Facility. Interest on the Credit Facility is based on certain published rates plus an applicable margin based on changes in the Company's public debt ratings and its leverage ratio. At the option of the Company, it may elect to lock into LIBOR-based interest rates for periods up to six months. Interest on any outstanding amounts not covered under LIBOR-based interest rate contracts is based on an alternate base rate, which is calculated by reference to the prime rate, the federal funds rate or an adjusted LIBOR rate. As of both December 31, 2020 and 2019, the Company's borrowing rate for LIBOR-based loans under the Credit Facility was LIBOR plus 1.125%. The Credit Facility contains various covenants, including the maintenance of a financial leverage ratio, which could impact the Company's ability to, among other things, incur additional indebtedness. In April 2020, the Company amended the Credit Facility to provide increased covenant flexibility. As amended, the leverage ratio covenant (as defined in the Credit Facility) was increased as follows:
As of: |  | Applicable Covenant:
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 the Company is in compliance with the historical 3.5 times EBITDA leverage ratio, the amended Credit Facility 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 both December 31, 2020 and 2019, there were no outstanding borrowings under the Senior Unsecured Revolving Credit Facility. As of December 31, 2020, the Company was in compliance with all covenants for its credit facilities. As of December 31, 2020, the Company had $1.3 billion of borrowing capacity available under the facilities, including $530 million available under the Secured Receivables Credit Facility and $750 million available under the Senior Unsecured Revolving Credit Facility. Senior Notes Offerings In 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 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 November 2020, the net proceeds from the 2031 Senior Notes, along with cash on hand, were used to redeem in full the outstanding indebtedness under the Company's senior notes due April 2021. In December 2019, the Company completed a senior notes offering, consisting of $800 million aggregate principal amount of 2.95% senior notes due June 2030 (the "2030 Senior Notes"), which were issued at an original issue discount of $2 million. The Company incurred $7 million of debt issuance costs associated with the 2030 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 January 2020, the net proceeds from the 2030 Senior Notes, along with cash on hand, were used to redeem in full the outstanding indebtedness under the Company's senior notes due January 2020 and senior notes due March 2020. In March 2019, the Company completed a senior notes offering, consisting of $500 million aggregate principal amount of 4.20% senior notes due June 2029 (the "2029 Senior Notes"), which were issued at an original issue discount of $1 million. The Company incurred $5 million of debt issuance costs associated with the 2029 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. The net proceeds from the 2029 Senior Notes were used to repay in full the outstanding indebtedness under the Company's senior notes due April 2019, to repay outstanding indebtedness under the Secured Receivables Credit Facility and for general corporate purposes. For the year ended December 31, 2020, the Company recorded a loss on retirement of debt, principally comprised of premiums paid, of $9 million in other income (expense), net. All of the senior notes are unsecured obligations of the Company and rank equally with the Company's other senior unsecured obligations. None of the Company's senior notes have a sinking fund requirement. The Company may redeem its outstanding senior notes prior to scheduled maturity, as a whole or in part, at a redemption price equal to the present value of the remaining scheduled payments of principal and interest, except for certain notes for which the Company also has an option to redeem such instruments at par value on or after dates specified in the indentures governing the notes ("the par value redemption option"). For notes with the par value redemption option, if such notes are redeemed prior to the specified dates, the redemption price calculations exclude any interest that would have been due after such dates. Maturities of Long-Term Debt As of December 31, 2020, long-term debt matures as follows:
Year Ending December 31, |
2021 | $ | 2 |
2022 | 1 |
2023 | 1 |
2024 | 302 |
2025 | 602 |
Thereafter | 3,095 |
Total maturities of long-term debt | 4,003 |
Unamortized discount | (11) |
Debt issuance costs | (28) |
Fair value basis adjustments attributable to hedged debt | 51 |
Total long-term debt | 4,015 |
Less: Current portion of long-term debt | 2 |
Total long-term debt, net of current portion | $ | 4,013 |

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- 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
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