XML 31 R17.htm IDEA: XBRL DOCUMENT v3.22.2
Debt
 6 Months Ended
Jun. 30, 2022
Debt Disclosure [Abstract]  
Debt Debt
Debt is comprised of the following at the dates indicated (in millions):
June 30, 2022December 31, 2021
3.85% senior notes due 2023
$1,087 $1,086 
4.00% senior notes due 2024
200 200 
4.875% senior notes due 2025
495 494 
3.90% senior notes due 2025
47 47 
4.20% senior notes due 2026
1,976 1,975 
5.375% senior notes due 2036
417 417 
5.50% senior notes due 2046
658 658 
Commercial paper112 — 
Receivables facility260 — 
Other debt2 9 
Total debt
5,254 4,886 
Short-term debt and current portion of long-term debt(1,461)(3)
Long-term debt$3,793 $4,883 

Senior Notes

On February 11, 2022, S&P Global Inc. (“S&P”) upgraded the Company’s debt rating to “BBB-” from “BB+” as S&P believed the Company has been able to achieve S&P’s target debt level. Since the S&P upgrade, the Company has been in a position to access the commercial paper market, up to a maximum of $800 million, provided there is a sufficient amount available for borrowing under the Credit Revolver (defined hereafter). In addition, the interest rate on the relevant senior notes decreased by 25 basis points due to the upgrade, reducing the Company’s interest expense by approximately $10 million on an annualized basis (approximately $8 million in 2022). However, certain of the Company’s outstanding senior notes aggregating to approximately $4.2 billion are still subject to an interest rate adjustment of 25 basis points in connection with the Moody’s Corporation (“Moody’s”) downgrade of the Company's debt rating in 2020.

Receivables Facility

The Company maintains an Accounts Receivable Securitization Facility (the “Securitization Facility”). During the second quarter of 2022, the Company amended the Securitization Facility. This amendment (1) reduced the aggregate commitment under the Securitization Facility to $375 million from $600 million, (2) extended its maturity by one year to October 2023 and (3) changed the reference rate under the Securitization Facility from LIBOR to SOFR. The Securitization Facility bears interest at a margin over a variable interest rate. The maximum availability under the Securitization Facility fluctuates based on eligible accounts receivable balances. At June 30, 2022, the Company has $260 million outstanding under the Securitization Facility.

Revolving Credit Facility and Commercial Paper

The Company maintains a $1.25 billion revolving credit facility that matures in December 2023 (the “Credit Revolver”). Under the Credit Revolver the Company may borrow funds on a variety of interest rate terms. Since the Credit Revolver provides the committed backup liquidity required to issue commercial paper, the Company may issue commercial paper up to a maximum of $800 million provided there is a sufficient amount available for borrowing under the Credit Revolver. At June 30, 2022, the Company did not have any amounts outstanding under the Credit Revolver, with a net availability of approximately $1.1 billion and approximately $112 million outstanding under its commercial paper program.

The Credit Revolver also provides for the issuance of up to $100 million of letters of credit, so long as there is sufficient amount available for borrowing under the Credit Revolver. At June 30, 2022, the Company has approximately $22 million of outstanding standby letters of credit issued against the Credit Revolver.
Other

The fair value of the Company’s senior notes are based upon prices of similar instruments in the marketplace and are as follows (in millions):
June 30, 2022December 31, 2021
Fair ValueBook ValueFair ValueBook Value
Senior notes$4,619 $4,880 $5,477 $4,877 

The carrying amounts of all other significant debt approximates fair value.