Debt

12 Months Ended

Sep. 30, 2023

Debt Disclosure [Abstract]

Debt

Debt

The detail of long-term debt was as follows:

	September 30, 2023		September 30, 2022
Senior notes, fixed interest rate of 5.5%, due 2028 (1)	750.0		750.0
Senior notes, fixed interest rate of 4.1%, due 2029 (1)	500.0		500.0
Revolving credit facility (2)	122.0		155.0
Total long-term debt, including current maturities	1,372.0		1,405.0
Less unamortized debt issuance costs and discount (1)	11.3		13.6
Total long-term debt	$	1,360.7	$	1,391.4

(1)At September 30, 2023, the balance for the Senior Notes due 2028 and the Senior Notes due 2029 are reflected net of debt issuance costs of $6.9 and $4.4, respectively. At September 30, 2022, the balance for the Senior Notes due 2028 and the Senior Notes due 2029 are reflected net of debt issuance costs of $8.3 and $5.3, respectively.

(2)The U.S. revolving credit facility matures in 2025.

At September 30, 2023 and 2022, the Company also had outstanding short-term notes payable with financial institutions with original maturities of less than 90 days of $19.5 and $19.0, respectively, with variable weighted-average interest rates of 3.9% for both periods. These notes were primarily outstanding international borrowings.

Issuance of Senior Notes

On March 8, 2021, the Company entered into a new unsecured indenture agreement for 4.125% Senior Notes in the amount of $500 due April 1, 2029 (the “2029 Notes”). The Company used the net proceeds from the issuance of the 2029 Notes, together with cash on hand, to satisfy and discharge its obligations outstanding under its 4.70% Senior Notes in the amount of $500 due 2022 (the “2022 Notes”) and to pay fees associated therewith. The Company incurred $6.5 in bank, legal, and other fees in connection with the issuance of the 2029 Notes, which has been deferred and is being amortized to interest expense over the term of the 2029 Notes. Interest expense on the 2029 Notes is due semiannually on April 1 and October 1.

In connection with the early repayment of the 2022 Notes, the Company recorded expense of $26.1 in fiscal 2021, which is included in Cost of early retirement of long-term debt in the Consolidated Statements of Earnings and Comprehensive Income. This expense included a premium of $25.5 and debt issuance cost write-offs of $0.6.

Debt Covenants

The U.S. revolving credit facility maturing in 2025 (“Revolving Credit Facility”) governing our outstanding debt at September 30, 2023 contains certain customary representations and warranties, financial covenants, covenants restricting the Company’s ability to take certain actions, affirmative covenants and provisions relating to events of default. Under the terms of the Revolving Credit Facility, the ratio of the Company’s indebtedness to earnings before interest, taxes, depreciation and amortization (“EBITDA”), as defined in the agreement and detailed below, cannot be greater than 4.0 to 1.0, however, there is an exception for acquisition activity. In addition, under the Revolving Credit Facility, the ratio of the Company’s EBITDA, as defined in the credit agreement, to total interest expense must exceed 3.0 to 1. Under the Revolving Credit Facility, EBITDA is defined as net earnings, as adjusted to add-back interest expense, income taxes, depreciation and amortization, all of which are determined in accordance with GAAP. In addition, the credit agreement allows certain non-cash charges such as stock award amortization and asset write-offs including, but not limited to, impairment and accelerated depreciation, and operating expense reductions or synergies to be “added-back” in determining EBITDA for purposes of the indebtedness ratio. Total debt and interest expense are calculated in accordance with GAAP. If the Company fails to comply with these covenants or with other requirements of the Revolving Credit Facility, the lenders may have the right to accelerate the maturity of the debt. Acceleration under the Revolving Credit Facility would trigger cross-defaults on its other borrowings.

As of September 30, 2023, the Company was in compliance with the provisions and covenants associated with the Revolving Credit Facility.

Debt Maturities

Aggregate maturities of long-term debt, including current maturities, at September 30, 2023 were as follows: $122.0 in 2025, $750.0 in 2028, and $500.0 in 2029.