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FINANCING ARRANGEMENTS | 12 Months Ended
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Dec. 31, 2020
Debt Disclosure [Abstract] |
FINANCING ARRANGEMENTS | FINANCING ARRANGEMENTS Short-Term Debt Short-term debt was as follows:
|  | Year Ended December 31,
|  | 2020 |  | 2019
|  | Principal |  | Interest |  | Principal |  | Interest
(in millions except percentages) |  | Balance |  | Rate |  | Balance |  | Rate
Other short-term loans |  | $ | 3 |  |  | 1.9 | % |  | $ | 2 |  |  | 3.7 | %
Add: Current portion of long-term debt |  | 296 |  |  |  |  | — |  |  |
Total short-term debt |  | $ | 299 |  |  |  |  | $ | 2 |  |  |
Maximum month-end short-term debt outstanding during the year |  | $ | 299 |  |  |  |  | $ | 148 |  |  |
Average amount of short-term debt outstanding during the year |  | 95 |  |  |  |  | 50 |  |  |
Weighted-average interest rate on short-term debt at year-end |  |  |  | 1.9 | % |  |  |  | 3.7 | %
Short-Term Borrowings The Company has access to a $700 million multi-currency revolving credit facility ("2018 Credit Facility") through July 28, 2024. The facility is unsecured and contains certain affirmative and negative covenants relating to the operations and financial condition of the Company. The most restrictive of these covenants pertain to asset dispositions and prescribed ratios of indebtedness to total capital and operating income, plus depreciation and amortization to interest expense. The credit facility serves as a back-stop facility for the Company's commercial paper program. The Company has a $500 million commercial paper facility. As of December 31, 2020 and 2019, the Company had no outstanding borrowings under this commercial paper facility. The average balance outstanding for the commercial paper facility during the year ended December 31, 2020 was $2 million. In response to the COVID-19 pandemic, the Company took the following actions during the year ended December 31, 2020 to strengthen its liquidity and financial flexibility: •On April 9, 2020, the Company entered into a $310 million 364-day revolving credit facility with a maturity date of April 8, 2021. The 364-day revolving credit facility mirrors the original five-year facility in all major respects and is unsecured. As of December 31, 2020 there were no outstanding borrowings under this facility. •On April 17, 2020, the Company provided a notice to the administrative agent to draw down the full available amount under the 2018 Credit Facility. The Company had previously not drawn down any sums under this facility. The borrowings incurred interest at the rate of adjusted LIBOR plus 1.25%. The Company subsequently repaid the $700 million revolver borrowing on May 26, 2020. •On May 26, 2020, the Company issued $750 million of senior unsecured notes with a final maturity date of June 1, 2030 at a semi-annual coupon rate of 3.25%. The net proceeds were $748 million, net of discount of $2 million. Issuance fees totaled $6 million. The Company paid $31 million to settle the $150 million notional Treasury Rate Lock ("T-Lock") contract which partially hedged the interest rate risk of the note issuance, see Note 18, Financial Instruments and Derivatives. This cost will be amortized over the ten-year life of the notes. The proceeds were used to repay the $700 million borrowed against the 2018 Credit Facility and the remaining proceeds will be used for working capital and other general corporate purposes. •Various other credit facilities: ◦On May 5, 2020, the Company entered into a 40 million euro 364-day revolving credit facility with a maturity date of April 30, 2021. As of December 31, 2020 there were no outstanding borrowings under this facility. ◦On May 12, 2020 the Company entered into a 30 million euro 364-day revolving credit facility with a maturity date of May 6, 2021. As of December 31, 2020 there were no outstanding borrowings under this facility. ◦On June 11, 2020, the Company entered into a 3.3 billion Japanese yen 364-day revolving credit facility with a maturity date of June 11, 2021. As of December 31, 2020 there were no outstanding borrowings under this facility. These agreements are unsecured and contain certain affirmative and negative covenants relating to the operations and financial condition of the Company. Long-Term Debt Long-term debt was as follows:
|  | Year Ended December 31,
|  | 2020 |  | 2019
|  | Principal |  | Interest |  | Principal |  | Interest
(in millions except percentages) |  | Balance |  | Rate |  | Balance |  | Rate
Fixed rate senior notes $450 million due August 2021 |  | $ | 296 |  |  | 4.1 | % |  | $ | 296 |  |  | 4.1 | %
Private placement notes 70 million euros due October 2024 |  | 85 |  |  | 1.0 | % |  | 78 |  |  | 1.0 | %
Private placement notes 25 million Swiss franc due December 2025 |  | 28 |  |  | 0.9 | % |  | 26 |  |  | 0.9 | %
Private placement notes 97 million euros due December 2025 |  | 118 |  |  | 2.1 | % |  | 109 |  |  | 2.1 | %
Private placement notes 26 million euros due February 2026 |  | 32 |  |  | 2.1 | % |  | 29 |  |  | 2.1 | %
Private placement notes 58 million Swiss franc due August 2026 |  | 65 |  |  | 1.0 | % |  | 60 |  |  | 1.0 | %
Private placement notes 106 million euros due August 2026 |  | 129 |  |  | 2.3 | % |  | 119 |  |  | 2.3 | %
Private placement notes 70 million euros due October 2027 |  | 85 |  |  | 1.3 | % |  | 78 |  |  | 1.3 | %
Private placement notes 8 million Swiss franc due December 2027 |  | 8 |  |  | 1.0 | % |  | 8 |  |  | 1.0 | %
Private placement notes 15 million euros due December 2027 |  | 18 |  |  | 2.2 | % |  | 17 |  |  | 2.2 | %
Private placement notes 140 million Swiss franc due August 2028 |  | 158 |  |  | 1.2 | % |  | 145 |  |  | 1.2 | %
Private placement notes 70 million euros due October 2029 |  | 85 |  |  | 1.5 | % |  | 78 |  |  | 1.5 | %
Fixed rate senior notes 750 million due June 2030 |  | 750 |  |  | 3.3 | % |  | — |  |  | — | %
Private placement notes 70 million euros due October 2030 |  | 85 |  |  | 1.6 | % |  | 78 |  |  | 1.6 | %
Private placement notes 45 million euros due February 2031 |  | 55 |  |  | 2.5 | % |  | 51 |  |  | 2.5 | %
Private placement notes 65 million Swiss franc due August 2031 |  | 73 |  |  | 1.3 | % |  | 67 |  |  | 1.3 | %
Private placement notes 12.6 billion Japanese yen due September 2031 |  | 122 |  |  | 1.0 | % |  | 116 |  |  | 1.0 | %
Private placement notes 70 million euros due October 2031 |  | 85 |  |  | 1.7 | % |  | 79 |  |  | 1.7 | %
Other borrowings, various currencies and rates |  | 7 |  |  |  |  | 4 |  |  |
|  | $ | 2,284 |  |  |  |  | $ | 1,438 |  |  |
Less: Current portion |  |  |  |  |  |  |  |
(included in “Notes payable and current portion of long-term debt” in the Consolidated Balance Sheets) |  | 296 |  |  |  |  | — |  |  |
Less: Long-term portion of deferred financing costs |  | 10 |  |  |  |  | 5 |  |  |
Long-term portion |  | $ | 1,978 |  |  |  |  | $ | 1,433 |  |  |
At December 31, 2020, the Company had $1,173 million borrowings available under unused lines of credit, including lines available under its short-term arrangements and revolving credit agreement. The Company’s revolving credit facility, term loans and senior notes contain certain affirmative and negative covenants relating to the Company's operations and financial condition. At December 31, 2020, the Company was in compliance with all debt covenants. The table below reflects the contractual maturity dates of the various long-term borrowings as follows:
(in millions) |  | December 31, 2020
2021 |  | $ | 296 |
2022 |  | 3 |
2023 |  | — |
2024 |  | 86 |
2025 |  | 147 |
2025 and beyond |  | 1,752 |
|  | $ | 2,284 |

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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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