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Notes Payable and Long-Term Debt | 9 Months Ended
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Sep. 30, 2020
Debt Disclosure [Abstract] |
Notes Payable and Long-Term Debt | Notes Payable and Long-Term Debt As of September 30, 2020 and December 31, 2019, the Company had short-term and long-term debt outstanding as follows:
| September 30, |  | December 31,
(in millions) | 2020 |  | 2019
Short-term debt |  |  |
Short-term borrowings | $ | 47 |  |  | $ | 34 |
Long-term debt |  |  |
4.625% Senior notes due 09/15/20 ($250 million par value) | — |  |  | 251 |
1.800% Senior notes due 11/07/22 (€500 million par value) | 584 |  |  | 558 |
3.375% Senior notes due 03/15/25 ($500 million par value) | 497 |  |  | 497 |
2.650% Senior notes due 07/01/27 ($1,100 million par value) | 1,088 |  |  | — |
7.125% Senior notes due 02/15/29 ($121 million par value) | 119 |  |  | 119 |
4.375% Senior notes due 03/15/45 ($500 million par value) | 494 |  |  | 494 |
Term loan facilities and other | 7 |  |  | 7 |
Total long-term debt | 2,789 |  |  | 1,926 |
Less: current portion | 2 |  |  | 252 |
Long-term debt, net of current portion | $ | 2,787 |  |  | $ | 1,674 |
The Company may utilize uncommitted lines of credit for short-term working capital requirements. As of September 30, 2020 and December 31, 2019, the Company had $47 million and $34 million, respectively, in borrowings under these facilities, which are classified in Notes payable and short-term debt on the Condensed Consolidated Balance Sheets. The weighted average interest rate on short-term borrowings outstanding as of September 30, 2020 and December 31, 2019 was 2.2% and 2.5%, respectively. The weighted average interest rate on all borrowings outstanding, including the effects of outstanding swaps, as of September 30, 2020 and December 31, 2019 was 2.3% and 2.8%. On June 19, 2020, in anticipation of the acquisition of Delphi Technologies and to refinance the Company's $250 million 4.625% senior notes due in September 2020, the Company issued $1.1 billion in 2.650% senior notes due July 2027. Interest is payable semi-annually in arrears on January 1 and July 1 of each year. These senior notes are not guaranteed by any of the Company’s subsidiaries. On April 29, 2020, the Company entered into a $750 million delayed-draw term loan which was subsequently cancelled on June 19, 2020 in accordance with its terms, following the Company's issuance of the $1.1 billion in 2.650% senior notes. On March 13, 2020, the Company amended its multi-currency revolving credit facility by increasing the size of the facility from $1.2 billion to $1.5 billion and by extending the maturity until March 13, 2025. The multi-currency revolving credit agreement automatically increased to $2.0 billion upon the closing of the acquisition of Delphi Technologies on October 1, 2020. Additionally, the agreement allows the Company the ability to increase the facility by $1.0 billion with bank group approval. The credit agreement contains customary events of default and one key financial covenant, which is a debt to Earnings Before Interest, Taxes, Depreciation and Amortization ("EBITDA") ratio. The Company was in compliance with the financial covenant at September 30, 2020. At September 30, 2020 and December 31, 2019, the Company h ad no outstanding borrowings under this facility. The Company's commercial paper program allows the Company to issue up to $1.5 billion of short-term, unsecured commercial paper notes under the limits of its multi-currency revolving credit facility. The commercial paper program automatically increased to $2.0 billion upon the closing of the acquisition of Delphi Technologies on October 1, 2020. Under this program, the Company may issue notes from time to time and use the proceeds for general corporate purposes. The Company had no outstanding borrowings under this program as of September 30, 2020 and December 31, 2019. As of September 30, 2020 and December 31, 2019, the estimated fair values of the Company’s senior unsecured notes totaled $3,027 million and $2,025 million, respectively. The estimated fair values were $245 million higher than their carrying value at September 30, 2020 and $106 million higher than their carrying value at December 31, 2019. Fair market values of the senior unsecured notes are developed using observable values for similar debt instruments, which are considered Level 2 inputs as defined by ASC Topic 820. The carrying values of the Company's multi-currency revolving credit facility and commercial paper program approximates fair value. The fair value estimates do not necessarily reflect the values the Company could realize in the current markets. The Company had outstanding letters of credit of $32 million and $28 million at September 30, 2020 and December 31, 2019, respectively. The letters of credit typically act as guarantees of payment to certain third parties in accordance with specified terms and conditions.

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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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