Debt

12 Months Ended

Dec. 31, 2020

Debt

Short-term borrowings, including current portion of long-term debt, consists of the following at December 31:


	2020		2019
6.00% notes, due 2020	$	—	$	209,322
5.125% notes, due March 2021	130,836		—
Borrowings on lines of credit	—		60,000
Other short-term borrowings	27,797		62,109
	$	158,633	$	331,431

Other short-term borrowings are primarily utilized to support working capital requirements. The weighted-average interest rate on these borrowings was 1.73% and 2.76% at December 31, 2020 and 2019, respectively.

The company has $200,000 in uncommitted lines of credit. There were no outstanding borrowings under the uncommitted lines of credit at December 31, 2020. There were $60,000 of outstanding borrowings under the uncommitted lines of credit at December 31, 2019. These borrowings were provided on a short-term basis and the maturity is agreed upon between the company and the lender. The lines had a weighted-average effective interest rate of 1.53% and 2.61% at December 31, 2020, and December 31, 2019, respectively.

The company has a commercial paper program and the maximum aggregate balance of commercial paper outstanding may not exceed the borrowing capacity of $1,200,000. The company had no outstanding borrowings under this program as of December 31, 2020 and 2019. The program had a weighted-average effective interest rate of 0.30% and 2.24% at December 31, 2020, and December 31, 2019, respectively.

Long-term debt consists of the following at December 31:


	2020		2019
North American asset securitization program	$	—	$	400,000
Revolving credit facility	—		10,000
5.125% notes, due 2021	—		130,691
3.50% notes, due 2022	348,918		348,088
4.50% notes, due 2023	298,701		298,148
3.25% notes, due 2024	496,034		495,045
4.00% notes, due 2025	346,999		346,368
7.50% senior debentures, due 2027	109,939		109,857
3.875% notes, due 2028	495,223		494,648

Other obligations with various interest rates and due dates	2,126		7,284
	$	2,097,940	$	2,640,129

The 7.50% senior debentures are not redeemable prior to their maturity. All other notes may be called at the option of the company subject to “make whole” clauses.

The estimated fair market value of long-term debt at December 31, using quoted market prices, is as follows:


	2020		2019
3.50% notes, due 2022	$	360,500	$	358,500
4.50% notes, due 2023	321,500		316,000
3.25% notes, due 2024	540,500		515,500
4.00% notes, due 2025	383,000		367,000
7.50% senior debentures, due 2027	140,000		135,000
3.875% notes, due 2028	564,000		516,500

The carrying amount of the company’s short-term borrowings in various countries, revolving credit facility, 5.125% notes due March 2021, North American asset securitization program, commercial paper, and other obligations approximate their fair value.

The company has a $2,000,000 revolving credit facility maturing in December 2023. This facility may be used by the company for general corporate purposes including working capital in the ordinary course of business, letters of credit, repayment, prepayment or purchase of long-term indebtedness, acquisitions, and as support for the company's commercial paper program, as applicable. Interest on borrowings under the revolving credit facility is calculated using a base rate or a Eurocurrency rate plus a spread (1.18% at December 31, 2020), which is based on the company's credit ratings, or an effective interest rate of 1.26% at December 31, 2020. The facility fee, which is based on the company's credit ratings, was .20% of the total borrowing capacity at December 31, 2020. The company had no outstanding borrowings under the revolving credit facility at December 31, 2020 and $10,000 in outstanding borrowings under the revolving credit facility at December 31, 2019.

The company has a North American asset securitization program collateralized by accounts receivable of certain of its subsidiaries. The company may borrow up to $1,200,000 under the program, which matures in June 2021. The company has the intent and ability to refinance the North American asset securitization program on a long-term basis and intends to refinance the program in 2021 prior to the maturity date. The program is conducted through Arrow Electronics Funding Corporation (“AFC”), a wholly-owned, bankruptcy remote subsidiary. The North American asset securitization program does not qualify for sale treatment. Accordingly, the accounts receivable and related debt obligation remain on the company's consolidated balance sheets. Interest on borrowings is calculated using a base rate or a commercial paper rate plus a spread (.40% at December 31, 2020), or an effective interest rate of .56% at December 31, 2020. The facility fee is .40% of the total borrowing capacity.

At December 31, 2020, the company had no outstanding borrowings under the North American asset securitization program. At December 31, 2019, the company had $400,000 in outstanding borrowings under the North American asset securitization program, which was included in “Long-term debt” in the company's consolidated balance sheets. Total collateralized accounts receivable of approximately $2,207,700 and $2,217,800 were held by AFC and were included in “Accounts receivable, net” in the company's consolidated balance sheets at December 31, 2020 and 2019, respectively. Any accounts receivable held by AFC would likely not be available to other creditors of the company in the event of bankruptcy or insolvency proceedings before repayment of any outstanding borrowings under the North American asset securitization program.

Both the revolving credit facility and North American asset securitization program include terms and conditions that limit the incurrence of additional borrowings and require that certain financial ratios be maintained at designated levels. As of December 31, 2020, the company was in compliance with all such financial covenants.

During April 2020, the company repaid $209,366 principal amount of its 6.00% notes due April 2020.

During March 2018, the company redeemed $300,000 principal amount of its 3.00% notes due March 2018.

In the normal course of business, certain of the company’s subsidiaries have agreements to sell, without recourse, selected trade receivables to financial institutions. The company does not retain financial or legal interests in these receivables, and, accordingly they are accounted for as sales of the related receivables and the receivables are removed from the company’s consolidated balance sheets.

Annual payments of borrowings during each of the years 2021 through 2025 are $158,633, $350,491, $299,049, $496,220, and $347,018, respectively, and $605,162 for all years thereafter.

Interest and other financing expense, net, includes interest and dividend income of $22,568, $54,815, and $47,860 in 2020, 2019, and 2018, respectively. Interest paid, net of interest and dividend income, amounted to $138,303, $209,512, and $213,913 in 2020, 2019, and 2018, respectively.