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Debt
6 Months Ended
Jun. 30, 2020
Debt  
Debt

7. Debt

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As of June 30, 2020 and December 31, 2019, the Company’s total debt consisted of the following:

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As of

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As of

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(in millions)

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June 30, 2020

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December 31, 2019

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2.900% senior notes due June 1, 2030

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$

594

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$

—

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3.200% senior notes due October 1, 2026

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497

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497

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3.900% senior notes due June 1, 2050

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390

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—

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6.625% senior notes due April 15, 2037

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253

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253

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4.625% senior notes due November 1, 2020

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—

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400

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5.62% senior notes due March 25, 2020

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—

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200

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Term loan credit agreement due April 12, 2021

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405

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405

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Revolving credit facility

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—

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10

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Other long-term borrowings

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1

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—

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Fair value adjustment related to hedged fixed rate debt instruments

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—

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1

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Long-term debt

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2,140

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1,766

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4.625% senior notes due November 1, 2020

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400

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—

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Other short-term borrowings

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70

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82

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Short-term debt

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470

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82

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Total debt

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$

2,610

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$

1,848

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During the three months ended March 31, 2020, the Company used proceeds from the revolving credit facility (“Revolving Credit Facility”) to refinance $200 million of its 5.62% senior notes due March 25, 2020.

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During the three months ended June 30, 2020, the Company sold its (i) 2.900% senior notes due 2030 in the principal amount of $600 million (the “2030 Notes”) and (ii) 3.900% senior notes due 2050 in the principal amount of $400 million (the “2050 Notes” and, together with the “2030 Notes,” the “Notes”).  The Company recorded the aggregate discount of approximately $7 million at which the Notes were issued and capitalized debt issuance costs of approximately $9 million associated with the Notes.

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During the three months ended June 30, 2020, the Company applied the net proceeds from the sale of the Notes to pay in full the outstanding balance of $394 million under the Revolving Credit Facility and to set aside funds to repay its 4.625% senior notes due November 1, 2020 (the “2020 Notes”).  On June 8, 2020, the Company issued a notice for the redemption in full of all $400 million principal amount of the 2020 Notes.  The 2020 Notes were redeemed on July 9, 2020 for a total redemption price of $409 million, including accrued interest and a “make-whole” premium as set forth in the indenture.

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The Company’s long-term debt as of June 30, 2020, includes the term loan credit agreement due April 12, 2021, as the Company has the ability and intent to refinance it on a long-term basis using our Revolving Credit Facility or other means prior to the maturity date.

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