Financing

6 Months Ended

Jun. 30, 2023

Debt Disclosure [Abstract]

Financing

FINANCING

The Company had the following debt outstanding as of:

($ in millions)	June 30, 2023		December 31, 2022
Short-term borrowings:
Short-term borrowings and bank overdrafts	$	8.7	$	4.6
Long-term debt:
Three-Year Term Loans due 2024	$	235.0	$	400.0
Three-Year Term Loans due 2025	600.0		600.0
1.800% senior unsecured notes due 2026	500.0		500.0
2.400% senior unsecured notes due 2028	500.0		500.0
2.950% senior unsecured notes due 2031	600.0		600.0
Revolving Credit Facility due 2026	—		—
Total long-term debt	2,435.0		2,600.0
Less: discounts and debt issuance costs	(12.6)		(14.3)
Total long-term debt, net	$	2,422.4	$	2,585.7

The Company’s long-term debt requires, among others, that the Company maintains certain financial covenants, and the Company was in compliance with all of these covenants as of June 30, 2023.

Credit Facilities

Revolving Credit Facility

The Revolving Credit Facility bears interest at a variable rate equal to SOFR plus an 11.4 basis points SOFR adjustment, plus a ratings-based margin which was 117.5 basis points as of June 30, 2023. As of June 30, 2023, there were no borrowings outstanding and $750.0 million of borrowing capacity under the Revolving Credit Facility.

Three-Year Term Loans Due 2024

The Three-Year Term Loans Due 2024, which mature on October 28, 2024, bear interest at a variable rate equal to SOFR plus an 11.4 basis points SOFR adjustment, plus a ratings-based margin which was 112.5 basis points as of June 30, 2023. The interest rate was 6.34% per annum as of June 30, 2023. The Company is not obligated to make repayments prior to the maturity date, but did voluntarily repay $100.0 million and $165.0 million during the three and six months ended June 30, 2023, respectively. The Company is not permitted to re-borrow once repayment is made. There was no material difference between the carrying value and the estimated fair value of the debt outstanding as of June 30, 2023.

Three-Year Term Loans Due 2025

The Three-Year Term Loans Due 2025 (together with the Three-Year Term Loans Due 2024, the “Term Loans”) bear interest at a variable rate equal to SOFR plus a 10.0 basis points credit spread adjustment plus a ratings-based margin which was 125.0 basis points as of June 30, 2023. The interest rate was 6.45% per annum as of June 30, 2023. As of June 30, 2023, there was no material difference between the carrying value and the estimated fair value of the debt outstanding.

Senior Unsecured Notes

The Company’s senior unsecured notes (collectively, the “Registered Notes”) consist of the following:

•$500.0 million aggregate principal amount of senior notes due April 1, 2026 bearing interest at the rate of 1.800% per year;

•$500.0 million aggregate principal amount of senior notes due April 1, 2028 bearing interest at the rate of 2.400% per year; and

•$600.0 million aggregate principal amount of senior notes due April 1, 2031 bearing interest at the rate of 2.950% per year.

The estimated fair value of the Registered Notes was $1.3 billion as of June 30, 2023. The fair value of the Registered Notes was determined based upon Level 2 inputs including indicative prices based upon observable market data. The difference between the fair value and the carrying amounts of the Registered Notes may be attributable to changes in market interest rates and/or the Company’s credit ratings subsequent to the incurrence of the borrowing.

Short-term Borrowings

As of June 30, 2023, certain of the Company’s businesses were in a cash overdraft position, and such overdrafts are included in Short-term borrowings on the Consolidated Condensed Balance Sheets. Additionally, the Company has other short-term borrowing arrangements with various banks to facilitate short-term cash flow requirements in certain countries also included in Short-term borrowings on the Consolidated Condensed Balance Sheets. Given the nature of the short-term borrowings, the carrying value approximates fair value as of June 30, 2023.