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NOTES PAYABLE AND DEBT
 12 Months Ended
Dec. 31, 2021
Debt Disclosure [Abstract]  
NOTES PAYABLE AND DEBT NOTES PAYABLE AND DEBT
The Company had short-term and long-term debt outstanding as follows:
December 31,
(in millions)20212020
Short-term debt
Short-term borrowings$62 $45 
Long-term debt
1.800% Senior notes due 11/07/22 (€500 million par value)
— 609 
3.375% Senior notes due 03/15/25 ($500 million par value)
498 498 
5.000% Senior notes due 10/01/25 ($800 million par value)1
889 912 
2.650% Senior notes due 07/01/27 ($1,100 million par value)
1,092 1,088 
7.125% Senior notes due 02/15/29 ($121 million par value)
119 119 
1.000% Senior notes due 05/19/31 (€1,000 million par value)
1,117 — 
4.375% Senior notes due 03/15/45 ($500 million par value)
494 494 
Term loan facilities, finance leases and other56 22 
Total long-term debt4,265 3,742 
Less: current portion4 4 
Long-term debt, net of current portion$4,261 $3,738 
_____________________________
1 These notes are reflected at their fair value as of the date of the acquisition. The fair value step-up was calculated based on observable market data and will be amortized as a reduction to interest expense over the remaining life of the instrument using the effective interest method.
The Company may utilize uncommitted lines of credit for short-term working capital requirements. As of December 31, 2021 and 2020, the Company had $62 million and $45 million, respectively, in borrowings under these facilities, which are reported in Notes payable and short-term debt on the Consolidated Balance Sheets.

The weighted average interest rate on short-term borrowings outstanding as of December 31, 2021 and 2020 was 1.0% and 1.7%, respectively. The weighted average interest rate on all borrowings outstanding, including the effects of outstanding swaps, as of December 31, 2021 and 2020 was 2.5% and 2.8%, respectively. The following table provides details on Interest expense, net included in the Consolidated Statements of Operations:

Year Ended December 31,
(in millions)202120202019
Interest expense$105 $73 $55 
Interest income(12)(12)(12)
Interest expense, net$93 $61 $43 

On May 19, 2021, in anticipation of the acquisition of AKASOL and to refinance the Company’s €500 million 1.8% senior notes due in November 2022, the Company issued €1.0 billion in 1.0% senior notes due May 2031. Interest is payable annually in arrears on May 19 of each year. These senior notes are not guaranteed by any of the Company’s subsidiaries. On June 18, 2021, the Company repaid its €500 million 1.8% senior notes due November 2022 and incurred a loss on debt extinguishment of $20 million, which is reflected in Interest expense, net in the Consolidated Statement of Operations.

On February 19, 2021, the Company entered into a $900 million, 364-day delayed-draw term loan facility to satisfy certain cash confirmation requirements in support of the proposed acquisition of AKASOL. The facility was cancelled on May 19, 2021 in accordance with its terms, following the Company’s issuance of the €1.0 billion in senior notes.

Annual principal payments required as of December 31, 2021 are as follows:
(in millions)
2022$66 
202341 
20243 
20251,302 
20262 
After 20262,863 
Total payments$4,277 
Add: unamortized premiums, net of discount50 
Total$4,327 

The Company’s long-term debt includes various covenants, none of which are expected to restrict future operations.

The Company has a $2 billion multi-currency revolving credit facility that allows the Company the ability to increase the facility by $1 billion with bank group approval. This facility matures in March 2025. The credit agreement contains customary events of default and one key financial covenant, which is a debt-to-EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) ratio. The Company was in compliance with the financial covenant at December 31, 2021. At December 31, 2021 and 2020, the Company had no outstanding borrowings under this facility.
The Company’s commercial paper program allows the Company to issue $2 billion of short-term, unsecured commercial paper notes under the limits of its multi-currency revolving credit facility. Under this program, the Company may issue notes from time to time and use the proceeds for general corporate purposes. The Company had no outstanding borrowings under this program as of December 31, 2021 and 2020.

The total current combined borrowing capacity under the multi-currency revolving credit facility and commercial paper program cannot exceed $2 billion.

As of December 31, 2021 and 2020, the estimated fair values of the Company’s senior unsecured notes totaled $4,421 million and $4,052 million, respectively. The estimated fair values were $212 million higher than carrying value at December 31, 2021 and $332 million higher than their carrying value at December 31, 2020. Fair market values of the senior unsecured notes are developed using observable values for similar debt instruments, which are considered Level 2 inputs as defined by ASC Topic 820. The carrying values of the Company’s multi-currency revolving credit facility, commercial paper program and other debt facilities approximate fair value. The fair value estimates do not necessarily reflect the values the Company could realize in the current markets.

The Company had outstanding letters of credit of $35 million and $33 million at December 31, 2021 and 2020, respectively. The letters of credit typically act as guarantees of payment to certain third parties in accordance with specified terms and conditions.