Long-term and Short-term Debt

12 Months Ended

Sep. 30, 2024

Debt Disclosure [Abstract]

Long-term and Short-term Debt

Long-term and Short-term Debt

Long-term debt consists of (in millions):

	September 30,
	2024		2023
2.875% notes, payable in March 2025	$	301.9	$	306.4
6.70% debentures, payable in January 2028	250.0		250.0
3.50% notes, payable in March 2029	425.0		425.0
1.75% notes, payable in August 2031	450.0		450.0
6.25% debentures, payable in December 2037	250.0		250.0
4.20% notes, payable in March 2049	575.0		575.0
2.80% notes, payable in August 2061	450.0		450.0
5.20% debentures, payable in January 2098	200.0		200.0
Unamortized discount, capitalized lease obligations and other	(33.2)		(34.9)
Total debt	2,868.7		2,871.5
Less: Current portion	(307.4)		(8.6)
Long-term debt	$	2,561.3	$	2,862.9

Our long-term debt and notes payable maturities in the next five years include a $300.0 million note that matures in fiscal year 2025, a $250.0 million debt issuance that matures in fiscal year 2028, and a $425.0 million note that matures in fiscal year 2029.

Our Short-term debt as of September 30, 2024, includes commercial paper borrowings of $657.0 million with a weighted average interest rate of 5.14 percent and a weighted average maturity period of 24 days. We had no commercial paper borrowings as of September 30, 2023. In December 2022, Sensia entered into an unsecured $75.0 million line of credit. As of September 30, 2024 and 2023, included in Short-term debt was $70.0 million borrowed against the line of credit with an interest rate of 6.17 percent and 6.29 percent, respectively. Also included in Short-term debt as of September 30, 2024 and September 30, 2023 was $23.5 million of interest-bearing loans from Schlumberger (SLB) to Sensia, due April 2025. In April 2024, $18.8 million of new interest-bearing loans from SLB to Sensia were entered into and were due August 2024, extended to April 2025.

On June 29, 2022, we replaced our former $1.25 billion unsecured revolving credit facility with a new five-year $1.5 billion unsecured revolving credit facility, expiring in June 2027. We can increase the aggregate amount of this credit facility by up to $750.0 million, subject to the consent of the banks in the credit facility. We did not borrow against this credit facility during the periods ended September 30, 2024, or 2023. Borrowings under this credit facility bear interest based on short-term money market rates in effect during the period the borrowings are outstanding. The terms of this credit facility contain covenants under which we agree to maintain an EBITDA-to-interest ratio of at least 3.0 to 1.0. The EBITDA-to-interest ratio is defined in the credit facility as the ratio of consolidated EBITDA (as defined in the facility) for the preceding four quarters to consolidated interest expense for the same period.

Among other uses, we can draw on our credit facility as a standby liquidity facility to repay our outstanding commercial paper as it matures. Under our current policy, we expect to limit our other borrowings under our credit facility, if any, to amounts that would leave enough credit available under the facility so that we could borrow, if needed, to repay all of our then outstanding commercial paper as it matures.

Separate short-term unsecured credit facilities of approximately $248.5 million at September 30, 2024, were available to non-U.S. subsidiaries, of which approximately $34.6 million was committed under letters of credit. Borrowings under our non-U.S. credit facilities at September 30, 2024 and 2023, were not significant. We were in compliance with financial covenants under our credit facilities at September 30, 2024 and 2023. There are no significant commitment fees or compensating balance requirements under our credit facilities.

Interest payments were $153.2 million during 2024, $133.2 million during 2023, and $120.4 million during 2022.

The following table presents the carrying amounts and estimated fair values of Long-term debt in the Consolidated Balance Sheet (in millions):

	September 30, 2024				September 30, 2023
	Carrying Value		Fair Value		Carrying Value		Fair Value
Current portion of long-term debt	$	307.4	$	305.0	$	8.6	$	8.6
Long-term debt	2,561.3		2,333.5		2,862.9		2,442.6

We base the fair value of long-term debt upon quoted market prices for the same or similar issues and therefore consider this a Level 2 fair value measurement. The fair value of long-term debt considers the terms of the debt excluding the impact of derivative and hedging activity. Refer to Note 1 for further information regarding levels in the fair value hierarchy. The carrying value of our short-term debt approximates fair value.