XML 29 R18.htm IDEA: XBRL DOCUMENT v3.22.2
NOTES PAYABLE AND DEBT
 6 Months Ended
Jun. 30, 2022
Debt Disclosure [Abstract]  
NOTES PAYABLE AND DEBT NOTES PAYABLE AND DEBT
As of June 30, 2022 and December 31, 2021, the Company had debt outstanding as follows:
June 30,December 31,
(in millions)
20222021
Short-term borrowings$56 $62 
Long-term debt
3.375% Senior notes due 03/15/25 ($500 million par value)
499 498 
5.000% Senior notes due 10/01/25 ($800 million par value)*
878 889 
2.650% Senior notes due 07/01/27 ($1,100 million par value)
1,090 1,092 
7.125% Senior notes due 02/15/29 ($121 million par value)
120 119 
1.000% Senior Notes due 05/19/31 (€1,000 million par value)
1,030 1,117 
4.375% Senior notes due 03/15/45 ($500 million par value)
494 494 
Term loan facilities, finance leases and other49 56 
Total long-term debt4,160 4,265 
Less: current portion4 4 
Long-term debt, net of current portion$4,156 $4,261 
_____________________________
*Includes the fair value step-up from the Delphi Technologies acquisition, which was 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 June 30, 2022 and December 31, 2021, the Company had $56 million and $62 million, respectively, in borrowings under these facilities, which are classified in Notes payable and other short-term debt on the Condensed Consolidated Balance Sheets.

The following table provides details on Interest expense, net included in the Condensed Consolidated Statements of Operations:
Three Months Ended June 30,Six Months Ended June 30,
(in millions)2022202120222021
Interest expense$21 $42 $40 $63 
Interest income(6)(3)(10)(6)
Interest expense, net$15 $39 $30 $57 

The Company has a $2.0 billion multi-currency revolving credit facility that includes a feature allowing the Company the ability to increase the facility by $1.0 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 June 30, 2022. At June 30, 2022 and December 31, 2021, the Company had no outstanding borrowings under this facility.

The Company’s commercial paper program allows the Company to issue up to $2.0 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 June 30, 2022 and December 31, 2021.

The total current combined borrowing capacity under the multi-currency revolving credit facility and commercial paper program cannot exceed $2 billion.
As of June 30, 2022 and December 31, 2021, the estimated fair values of the Company’s senior unsecured notes totaled $3,620 million and $4,421 million, respectively. The estimated fair values were $491 million lower than their carrying value at June 30, 2022 and $212 million higher than their carrying value at December 31, 2021. 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 $41 million and $35 million at June 30, 2022 and December 31, 2021, respectively. The letters of credit typically act as guarantees of payment to certain third parties in accordance with specified terms and conditions.