Debt

12 Months Ended

Dec. 31, 2020

Short-Term Debt

Credco’s short-term debt outstanding (excluding short-term debt to affiliates), defined as borrowings with original contractual maturity dates of less than one year, as of December 31 was as follows:


	2020				2019
(Millions, except percentages)	Outstanding Balance		Year-End Stated Interest Rate on Debt (a)		Outstanding Balance		Year-End Stated Interest Rate on Debt (a)
Commercial paper(b)	$	—	—	%	$	3,001	1.94	%
Other short-term borrowings(c)	—		—		215		1.58
Total	$	—	—	%	$	3,216	1.91	%

(a)For floating-rate issuances, the stated interest rates are weighted based on the outstanding principal balances and interest rates in effect as of December 31, 2019.

(b)Average commercial paper outstanding was $628 million and $299 million in 2020 and 2019, respectively.

(c)Represents interest-bearing book overdrafts with banks.

Long-Term Debt

Credco’s long-term debt outstanding (excluding long-term debt to affiliates), defined as debt with original contractual maturity dates of one year or greater, as of December 31 was as follows:


		2020						2019
	Original Contractual Maturity Dates	Outstanding Balance(a)		Year-End Interest Rate on Debt(b)		Year-End Interest Rate with Swaps(b)(c)		Outstanding Balance(a)		Year-End Interest Rate on Debt(b)		Year-End Interest Rate with Swaps(b)(c)
(Millions, except percentages)
Fixed Rate Senior Notes	2021-2027	$	6,746	2.38	%	1.67	%	$	11,839	2.40	%	2.53	%
Floating Rate Senior Notes	2021-2022	300		0.93		—		1,650		2.64		—
Unamortized Underwriting Fees		(9)						(20)
Total Long-Term Debt		$	7,037	2.32	%			$	13,469	2.43	%

(a)The outstanding balances include (i) unamortized discount, (ii) the impact of movements in exchange rates on foreign currency denominated debt and (iii) the impact of fair value hedge accounting on certain fixed-rate notes that have been swapped to floating rate through the use of interest rate swaps. Refer to Note 6 for more details on Credco’s treatment of fair value hedges.

(b)For floating-rate issuances, the stated interest rate on debt is weighted based on outstanding principal balances and interest rates in effect as of December 31, 2020, and 2019.

(c)Interest rates with swaps are only presented when swaps are in place to hedge the underlying debt. The interest rates with swaps are weighted based on the outstanding principal balances and the interest rates on the floating leg of the swaps in effect as of December 31, 2020, and 2019.

Aggregate annual maturities on long-term debt obligations (based on contractual maturity or anticipated redemption dates) as of December 31, 2020 were as follows:


(Millions)
2021	$	2,975
2022	2,050
2023	—
2024	—
2025	—
Thereafter	2,000
Total	7,025
Unamortized Underwriting Fees	(9)
Unamortized Discount	(19)
Impacts due to Fair Value Hedge Accounting	40
Total Long-Term Debt	$	7,037

Credco maintained a committed syndicated bank credit facility of $3.5 billion as of December 31, 2020, and 2019, all of which was undrawn as of the respective dates. Credco paid $2.5 million and $4.9 million in fees to maintain these lines for the years ended December 31, 2020, and 2019, respectively. The availability of this facility is subject to Credco’s compliance with certain covenants that require maintenance of a 1.25 minimum FCCR. FCCR is the ratio of earnings available for fixed charges (interest expenses including interest expense to affiliates) to fixed charges for the applicable period. During the fourth quarter of 2020, Credco and its bank lenders agreed to amend the credit agreement to revise the definition of FCCR to include certain capital contributions to additional paid-in capital from TRS. As of December 31, 2020, and onwards, earnings available for fixed charges are defined as net income before fixed charges and income tax provision plus certain capital contributions, if any, made by TRS to Credco. The FCCR for Credco was 2.17 for the year ended December 31, 2020. As of December 31, 2020, and 2019, Credco was not in violation of any of these covenants. For the quarter ended December 31, 2020, Credco did not require any capital contributions from TRS for the maintenance of its minimum FCCR.

The committed facility does not contain material adverse change clauses that would preclude borrowing under the credit facility. Additionally, the facility may not be terminated should there be a change in Credco’s credit ratings.

Credco paid total interest, primarily related to short- and long-term debt, and corresponding interest rate swaps of $0.2 billion, $0.5 billion, and $0.6 billion for the years ended December 31, 2020, 2019 and 2018, respectively.