Financing

9 Months Ended

Sep. 25, 2020

Debt Disclosure [Abstract]

Financing

NOTE 4. FINANCING

The carrying values of the components of our long-term debt were as follows:

($ in millions)	September 25, 2020		December 31, 2019
Short-term borrowings:
7.00% Credit Facility due in January 2020	$	—	$	12.6
6.95% Credit Facility due October 2020	12.2		—
Other short-term borrowings and bank overdrafts	0.7		4.2
Total short-term borrowings	$	12.9	$	16.8
Long-term debt:
Related-party loans with Fortive entities	—		24.6
Long-term debt	$	—	$	24.6

Debt issuance costs that have been netted against the aggregate principal amounts of the components of debt in the table above are insignificant. Given the nature of the Company’s borrowings, the carrying value approximates fair value at both September 25, 2020 and December 31, 2019.

Short-term Borrowings

We have entered into short-term borrowing arrangements with various banks to facilitate short-term cash flow requirements in certain countries. Additionally, certain of our businesses participated in Fortive’s cash pooling arrangements. At September 25, 2020 and December 31, 2019, certain of our businesses were in a cash overdraft position, and such overdrafts are included in Short-term borrowings on the Combined Condensed Balance Sheets.

Third party debt held by Fortive and the related interest expense was not allocated to us. The interest rate associated with the Company’s other short-term borrowings and bank overdrafts as of September 25, 2020 and December 31, 2019 was approximately 7.2% and 9.0%, respectively.

Interest payments associated with the above borrowings were insignificant for the nine months ended September 25, 2020 and September 27, 2019.

On October 3, 2020, the 6.95% credit facility with Citibank, N.A. was renewed for $10.9 million at 5.95% with a maturity date of November 3, 2020.

The 6.70% Credit Facility due in July 2020 was repaid on July 3, 2020.

Long-term Debt

As part of Fortive, we engaged in intercompany financing transactions. Transactions between Fortive and the Company have been included in Long-term debt on the Combined Condensed Balance Sheets as of December 31, 2019. As of December 31, 2019, these loans had an average interest rate of approximately 1.0%. These transactions were settled during the nine months ended September 25, 2020.

Refer to “Note 11. Related Party Transactions” for additional information regarding the related-party loans with Fortive entities.

Additionally, refer to “Note 13. Subsequent Events” for additional information regarding financing transactions entered into subsequent to period end.