NOTES PAYABLE AND DEBT

3 Months Ended

Mar. 31, 2021

As of March 31, 2021 and December 31, 2020, the Company had debt outstanding as follows:


	March 31,		December 31,
(in millions)	2021		2020
Short-term borrowings	$	47	$	45

Long-term debt
1.800% Senior notes due 11/07/22 (€500 million par value)	585		609
3.375% Senior notes due 03/15/25 ($500 million par value)	498		498
5.000% Senior notes due 03/15/25 ($800 million par value)*	906		912
2.650% Senior notes due 07/01/27 ($1,100 million par value)	1,089		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, finance leases and other	21		22
Total long-term debt	3,712		3,742
Less: current portion	4		4
Long-term debt, net of current portion	$	3,708	$	3,738

________________

*Includes the fair value step-up from the Delphi Technologies acquisition, which was based on observable market data and will be amortized as a reduction to interest expense over the remaining life of the instrument using the effective interest method.

The Company may utilize uncommitted lines of credit for short-term working capital requirements. As of March 31, 2021 and December 31, 2020, the Company had $47 million and $45 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 March 31, 2021 and December 31, 2020 was 1.6% and 1.7%, respectively. The weighted average interest rate on all

borrowings outstanding, including the effects of outstanding cross-currency swaps, as of March 31, 2021 and December 31, 2020 was 2.8%.

On February 19, 2021, the Company entered into a $900 million, 364-day delayed draw term loan facility to satisfy certain cash confirmation requirements in support of the proposed acquisition of AKASOL. The facility remained undrawn at March 31, 2021 and is expected to remain undrawn. Refer to Note 3, “Acquisitions,” to the Condensed Consolidated Financial Statements for more information.

The Company has a $2.0 billion multi-currency revolving credit facility which 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-EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) ratio. The Company was in compliance with the financial covenant at March 31, 2021. At March 31, 2021 and December 31, 2020, the Company had no outstanding borrowings under this facility.

The Company’s commercial paper program allows the Company to issue up to $2.0 billion of short-term, unsecured commercial paper notes under the limits of its multi-currency revolving credit facility. 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 March 31, 2021 and December 31, 2020.

The total current combined borrowing capacity under the multi-currency revolving credit facility and commercial paper program cannot exceed $2 billion.

As of March 31, 2021 and December 31, 2020, the estimated fair values of the Company’s senior unsecured notes totaled $3,893 million and $4,052 million, respectively. The estimated fair values were $202 million higher than their carrying value at March 31, 2021 and $332 million higher than their carrying value at December 31, 2020. 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 $36 million and $33 million at March 31, 2021 and December 31, 2020, respectively. The letters of credit typically act as guarantees of payment to certain third parties in accordance with specified terms and conditions.