Borrowings

3 Months Ended

Mar. 31, 2024

Debt Disclosure [Abstract]

Borrowings

10. Borrowings

Borrowings consist of the following:

	March 31, 2024		December 31, 2023
Short-term
Commercial paper	$	968,300	$	467,600
Other	672		682
Short-term borrowings	$	968,972	$	468,282

During the three months ended March 31, 2024, commercial paper borrowings increased $500,700. The borrowings outstanding under the commercial paper program had a weighted average annual interest rate of 5.51% as of March 31, 2024 and December 31, 2023.

			Carrying amount (1)
	Principal		March 31, 2024		December 31, 2023
Long-term
3.15% 10-year notes due November 15, 2025	$	400,000	$	398,905	$	398,737
1.25% 10-year notes due November 9, 2026 (euro-denominated)	€	600,000	647,410		657,628
0.750% 8-year notes due November 4, 2027 (euro-denominated)	€	500,000	538,813		547,342
6.65% 30-year debentures due June 1, 2028	$	200,000	199,582		199,557
2.950% 10-year notes due November 4, 2029	$	300,000	297,881		297,787
5.375% 30-year debentures due October 15, 2035	$	300,000	297,120		297,058
6.60% 30-year notes due March 15, 2038	$	250,000	248,420		248,392
5.375% 30-year notes due March 1, 2041	$	350,000	345,327		345,258
Other			27		—
Total long-term debt			$	2,973,485	$	2,991,759

(1) Carrying amount is net of unamortized debt discount and deferred debt issuance costs. Total unamortized debt discounts were $10.4 million and $10.9 million as of March 31, 2024 and December 31, 2023, respectively. Total deferred debt issuance costs were $8.4 million and $8.9 million as of March 31, 2024 and December 31, 2023, respectively.

The discounts are being amortized to interest expense using the effective interest method over the life of the issuances. The deferred issuance costs are amortized on a straight-line basis over the life of the debt, as this approximates the effective interest method.

On April 6, 2023, the Company entered into a $1.0 billion five-year unsecured revolving credit facility and on April 4, 2024, the Company entered into a new $500.0 million 364-day unsecured revolving credit facility (together, the "Credit Agreements") with a syndicate of banks. The new 364-day credit facility replaced the existing $500.0 million 364-day credit facility, which expired on April 4, 2024. The lenders' commitments under the five-year and 364-day Credit Agreements will terminate and any outstanding loans under the Credit Agreements will mature on April 6, 2028 and April 3, 2025, respectively. The Company may elect to extend the maturity date of any loans under the new 364-day credit facility until April 3, 2026, subject to conditions specified therein. The Credit Agreements are designated as a liquidity back-stop for the Company's commercial paper program and also are available for general corporate purposes. At the Company's election, loans under the Credit Agreements will bear interest at a base rate plus an applicable margin. The Credit Agreements require the Company to pay facility fees and impose various restrictions on the Company such as, among other things, a requirement to maintain a minimum interest coverage ratio of consolidated EBITDA to consolidated net interest expense of not less than 3.0 to 1. As of March 31, 2024 and December 31, 2023, there were no outstanding borrowings under the five-year and then existing 364-day credit facilities.

The Company was in compliance with all covenants in the Credit Agreements and other long-term debt covenants at March 31, 2024 and had an interest coverage ratio of consolidated EBITDA to consolidated net interest expense of 19.1 to 1.

Letters of Credit and other Guarantees

As of March 31, 2024, the Company had approximately $160.0 million outstanding in letters of credit, surety bonds, and performance and other guarantees which primarily expire on various dates through 2032. These letters of credit and bonds are primarily issued as security for insurance, warranty and other performance obligations. In general, we would only be liable for the amount of these guarantees in the event of default in the performance of our obligations, the probability of which is believed to be remote.