FINANCING ARRANGEMENTS

12 Months Ended

Dec. 31, 2020

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