Debt

3 Months Ended

Mar. 31, 2023

Debt Disclosure [Abstract]

Debt

DebtDebt, net of unamortized original issue discounts or premiums, and unamortized debt issuance costs, consists of the following:

	March 31, 2023		December 31, 2022
Repurchase facility expiring 2023 (1)	$	100	$	100
Accounts receivable securitization facility expiring 2024 (1) (2)	879		959
Term loan facility expiring 2025 (1) (3)	951		953
$4.25 billion ABL facility expiring 2027 (1)	1,838		1,523
5 1/2 percent Senior Notes due 2027	498		498
3 7/8 percent Senior Secured Notes due 2027	745		744
4 7/8 percent Senior Notes due 2028 (4)	1,663		1,663
6 percent Senior Secured Notes due 2029	1,486		1,486
5 1/4 percent Senior Notes due 2030	744		744
4 percent Senior Notes due 2030	744		743
3 7/8 percent Senior Notes due 2031	1,090		1,090
3 3/4 percent Senior Notes due 2032	744		744
Finance leases	166		123
Total debt	11,648		11,370
Less short-term portion (5)	(156)		(161)
Total long-term debt	$	11,492	$	11,209

 ___________________

(1)The table below presents financial information associated with our variable rate indebtedness as of and for the three months ended March 31, 2023. There is no borrowing capacity under the repurchase facility because it is an uncommitted facility. The repurchase facility expires on June 23, 2023 unless extended by the mutual consent of the parties to the repurchase facility agreement. If the facility is not extended, we believe we have sufficient liquidity to repay the outstanding debt under the facility. We have borrowed the full available amount under the term loan facility. The principal obligation under the term loan facility is required to be repaid in quarterly installments in an aggregate amount equal to 1.0 percent per annum, with the balance due at the maturity of the facility. The average amount of debt outstanding under the term loan facility decreases slightly each quarter due to the requirement to repay a portion of the principal obligation.

	ABL facility			Accounts receivable securitization facility			Term loan facility			Repurchase facility
Borrowing capacity, net of letters of credit	$	2,336		$	220		$	—
Letters of credit	67
Interest rate at March 31, 2023	5.9		%	5.7		%	6.6		%	5.9	%
Average month-end debt outstanding	1,750			966			957			100
Weighted-average interest rate on average debt outstanding	5.7		%	5.6		%	6.4		%	5.7	%
Maximum month-end debt outstanding	1,848			1,100			958			100

(2)Borrowings under the accounts receivable securitization facility are permitted only to the extent that the face amount of the receivables in the collateral pool, net of applicable reserves and other deductions, exceeds the outstanding loans. As of March 31, 2023, there were $1.348 billion of receivables, net of applicable reserves and other deductions, in the collateral pool.

(3)In April 2023, the term loan facility was amended to transition to an interest rate based on the Secured Overnight Financing Rate ("SOFR").

(4)URNA separately issued 4 7/8 percent Senior Notes in August 2017 and in September 2017. Following the issuances, URNA consummated an exchange offer pursuant to which most of the 4 7/8 percent Senior Notes issued in September 2017 were exchanged for additional notes fungible with the 4 7/8 percent Senior Notes issued in August 2017. As of March 31, 2023, the total above is comprised of two separate 4 7/8 percent Senior Notes, one with a book value of $1.659 billion and one with a book value of $4.

(5)Short-term debt primarily reflects borrowings under the repurchase facility and the short-term portion of our finance leases.

Loan Covenants and Compliance

As of March 31, 2023, we were in compliance with the covenants and other provisions of the ABL, accounts receivable securitization, term loan and repurchase facilities and the senior notes. Any failure to be in compliance with any material provision or covenant of these agreements could have a material adverse effect on our liquidity and operations.The only financial covenant that currently exists under the ABL facility is the fixed charge coverage ratio. Subject to certain limited exceptions specified in the ABL facility, the fixed charge coverage ratio covenant under the ABL facility will only apply in the future if specified availability under the ABL facility falls below 10 percent of the maximum revolver amount under the ABL facility. When certain conditions are met, cash and cash equivalents and borrowing base collateral in excess of the ABL facility size may be included when calculating specified availability under the ABL facility. As of March 31, 2023, specified availability under the ABL facility exceeded the required threshold and, as a result, this financial covenant was inapplicable. Under our accounts receivable securitization facility, we are required, among other things, to maintain certain financial tests relating to: (i) the default ratio, (ii) the delinquency ratio, (iii) the dilution ratio and (iv) days sales outstanding. The accounts receivable securitization facility also requires us to comply with the fixed charge coverage ratio under the ABL facility, to the extent the ratio is applicable under the ABL facility.