Debt

9 Months Ended

Sep. 30, 2022

Debt

Debt

15.    Debt

Long-term debt consisted of the following:

	September 30,		December 31,
($ in millions)	2022		2021
Senior Notes
4.00% due November 2023	$	1,000	$	1,000
4.375%, euro denominated, due December 2023		686		796
0.875%, euro denominated, due March 2024		735		853
5.25% due July 2025		1,000		1,000
4.875% due March 2026		750		750
1.50%, euro denominated, due March 2027		539		625
2.875% due August 2030		1,300		1,300
3.125% due September 2031		850		850
Senior Credit Facility (at variable rates)
Term A loan due March 2024 (1.35% - 2021)		—		593
U.S. dollar revolver due June 2027 (4.10% - 2022)		200		—
Term A loan due June 2027 (3.81% - 2022)		1,350		—
Finance lease obligations		12		14
Other (including debt issuance costs)		(56)		(56)
		8,366		7,725
Less: Current portion		(3)		(3)
	$	8,363	$	7,722

In the second quarter of 2022, the company completed the closing of its new revolving and term loan senior secured credit facilities that refinance its existing senior secured credit facilities entered into in 2019. The company’s senior credit facilities include long-term multi-currency revolving facilities that mature in June 2027, which provide the company with up to the U.S. dollar equivalent of $1.75 billion. At September 30, 2022, taking into account outstanding letters of credit, $1.5 billion was available under the company’s long-term, revolving credit facilities. In addition to these facilities, the company had approximately $1.2 billion of short-term uncommitted credit facilities available at September 30, 2022, of which $467 million was outstanding and due on demand. At December 31, 2021, the company had $12 million outstanding under short-term uncommitted credit facilities.

The fair value of long-term debt was estimated to be $7.6 billion and $8 billion at September 30, 2022 and December 31, 2021. The fair value reflects the market rates at each period end for debt with credit ratings similar to the company’s ratings and is classified as Level 2 within the fair value hierarchy. Rates currently available to the company for loans with similar terms and maturities are used to estimate the fair value of long-term debt based on discounted cash flows.

The U.S. note agreements and bank credit agreement contain certain restrictions relating to dividend payments, share repurchases, investments, financial ratios, guarantees and the incurrence of additional indebtedness. The company’s most restrictive debt covenant requires the company to maintain a leverage ratio (as defined) of no greater than 5.0 times as of September 30, 2022, which will change to 4.5 times as of September 30, 2025. The company was in compliance with all loan agreements and debt covenants at both September 30, 2022, and December 31, 2021, and it has met all debt payment obligations.