FINANCIAL ARRANGEMENTS

3 Months Ended

Mar. 31, 2020

Debt Disclosure [Abstract]

FINANCIAL ARRANGEMENTS

FINANCING ARRANGEMENTS

Debt Issuance

In March 2020, we issued $750 million of 3.75% senior notes due in March 2025 and $500 million of 3.95% senior notes due in March 2030 (collectively, the senior notes). Pursuant to a registration rights agreement (the Registration Rights Agreement) with the initial purchasers of the senior notes, we agreed to use our commercially reasonable efforts to file a registration statement with respect to a registered offer to exchange the senior notes for new notes with terms substantially identical in all material respects to the senior notes and to have such registration statement declared effective under the U.S. Securities Act of 1933. If we fail to have such registration statement declared effective by September 17, 2021 (a registration default), the annual interest rate on the senior notes would increase by 0.25% for the 90-day period immediately following such registration default and by an additional 0.25% thereafter. The maximum additional interest rate is 0.50% per annum and if a registration default is corrected, the senior notes would revert to the original interest rates. The payment of additional interest is the sole remedy for the holders of the senior notes in the event of a registration default.

Credit Facilities

As of March 31, 2020 and December 31, 2019, we had €200 million ($220 million and $224 million, respectively) outstanding under our Euro-denominated credit facility at a 0.91% interest rate and no borrowings outstanding under our U.S. dollar-denominated credit facility.