DEBT

Short-Term Borrowings

As of September 30, 2015 and December 31, 2014, the Company had short-term borrowings of $1.5 million and $4.1 million, respectively, which consisted of borrowings made by the Company’s subsidiary in Argentina. For the nine months ended September 30, 2015, these borrowings had a weighted-average interest rate of 27.0%.

See Note 21. Subsequent Events for a description of the Company’s term loan entered into on October 21, 2015.

Long-Term Debt

The components of long-term debt were as follows:



(Dollars in millions)	September 30, 2015			December 31, 2014
Principal Value:
Revolver Borrowings	$	322.0		$	—
4.90% Notes due 2019	700.0			700.0
5.90% Notes due 2039	300.0			300.0
4.60% Notes due 2044	500.0			500.0
Sub-total	1,822.0			1,500.0
Adjustments to Principal Value:
Unamortized basis adjustment for settled interest rate swaps	7.4			8.8
Unamortized bond discount	(3.8		)	(4.0		)
Fair-value interest rate swaps	13.7			(0.9		)
Long-term debt	$	1,839.3		$	1,503.9

Revolver Borrowings

As of September 30, 2015, the Company had borrowings of $322.0 million from its five-year revolving credit facility agreement (“Credit Facility”) with a weighted-average interest rate of 1.3%. The proceeds from the Credit Facility were primarily used to repurchase shares of company stock. As of September 30, 2015 and December 31, 2014, the Company had $428.0 million and $750.0 million, respectively, available under this facility.

During the nine months ended September 30, 2014, the Company amended its revolving credit facility agreement to provide for, among other things, an increase in the aggregate amount available for borrowing under the facility, the addition of certain financial institutions as lenders and the extension of the facility’s maturity date. The amended credit facility is unsecured and repayable at maturity in June 2019, subject to annual extensions if a sufficient number of lenders agree. The maximum amount of outstanding borrowings and letters of credit permitted at any one time under the amended facility is $750.0 million, which may be increased from time to time up to $1.0 billion at the Company’s request, subject to obtaining additional commitments and other customary conditions. The credit facility contains financial covenants, whereby the ratio of consolidated total debt to consolidated Earnings Before Interest, Income Taxes, Depreciation and Amortization (“EBITDA”) cannot exceed 3.50 to 1.0, and the ratio of consolidated EBITDA to consolidated interest expense cannot be less than 3.0 to 1.0. The Company was in compliance with these financial covenants as of September 30, 2015.

Borrowings under the Credit Facility bear interest at a rate that is determined as a base rate plus a margin. The base rate is either (a) LIBOR for a specified interest period or (b) a floating rate based upon JPMorgan Chase Bank’s prime rate, the Federal Funds rate or LIBOR. The margin is determined by reference to the Company’s credit rating. The margin can range from 0% to 1.375% over the base rate. In addition, the Company incurs an annual 0.125% facility fee on the entire facility commitment of $750.0 million.

Long-Term Notes

In the third quarter of 2014, the Company redeemed all of its $500.0 million of 3.50% Notes due in 2014 (the “2014 Notes”). The redemption price, which was calculated in accordance with the terms of the 2014 Notes and included principal plus a make-whole premium, was $503.5 million.

During the nine months ended September 30, 2014, the Company issued and sold $500.0 million of 4.60% senior notes due June 1, 2044 at a public offering price of 99.465% (the “2044 Notes”). Net proceeds from the sale of the 2044 Notes, after deducting underwriters' discounts and offering expenses, were $492.0 million. Interest on the 2044 Notes is payable semi-annually on June 1 and December 1 of each year. Proceeds from the 2044 Notes, together with cash on hand, was used to redeem the 2014 Notes. In addition, the Company settled a series of cash flow interest rate forward swaps into which it originally entered during the fourth quarter of 2013. These swaps mitigated interest rate exposure associated with the Company’s offering of the 2044 Notes. See Note 16 for discussion of the Company’s interest rate forward swaps.

During the nine months ended September 30, 2014, the Company entered into a series of fair value interest rate swaps that effectively convert the Company’s 4.90% Notes due 2019 (the “2019 Notes”) from a fixed rate structure to a floating rate structure. As of September 30, 2015, these swaps have resulted in a fair value adjustment of $13.7 million to increase long-term debt, which is offset by a long-term derivative asset. See Note 16 for a discussion of the fair value swaps.

Using quoted prices in markets that are not active, the Company determined that the fair value of its long-term debt was $1,890.3 million (Level 2) as of September 30, 2015.

The components of interest expense-net were as follows:



	Three Months Ended September 30,						Nine Months Ended September 30,
(In millions)	2015			2014			2015			2014
Interest expense	$	16.8		$	20.6		$	49.7		$	53.2
Interest income	(2.0		)	(2.3		)	(7.2		)	(7.2		)
Interest expense-net	$	14.8		$	18.3		$	42.5		$	46.0