5. DEBT AND INTEREST

The following table provides the components of the company’s short-term debt obligations as of June 30, 2016 and December 31, 2015.



	June 30		December 31
	2016		2015
(millions)
Short-term debt
Commercial paper		$ 273.4		$ 605.0
Notes payable		20.7		30.9
Long-term debt, current maturities		1,455.8		1,569.4
Total		$ 1,749.9		$ 2,205.3

As of June 30, 2016, the company had in place a $2.0 billion multi-year credit facility which expires in December 2019. The credit facility has been established with a diverse syndicate of banks and supports the company’s $2.0 billion U.S. commercial paper program and the company’s $200.0 million European commercial paper program. The company’s U.S. commercial paper program, as shown in the previous table, had $273.4 million and $605.0 million outstanding as of June 30, 2016 and December 31, 2015, respectively. The company had no commercial paper outstanding under its European program as of either June 30, 2016 or December 31, 2015.

The following table provides the components of the company’s long-term debt obligations, including current maturities, as of June 30, 2016 and December 31, 2015.



	Maturity	June 30		December 31
(millions)	by Year	2016		2015
Long-term debt
Description / 2016 Principal Amount
Term loan ($0)	2016		$ -		$ 125.0
Series B private placement senior notes (€175 million)	2016		194.7		184.9
Five year 2011 senior notes ($1.25 billion)	2016		1,249.0		1,247.3
Five year 2012 senior notes ($500 million)	2017		501.5		497.9
Three year 2015 senior notes ($300 million)	2018		300.5		297.8
Series A private placement senior notes ($250 million)	2018		252.4		248.6
Three year 2016 senior notes ($400 million)	2019		401.7		-
Five year 2015 senior notes ($300 million)	2020		298.4		298.1
Ten year 2011 senior notes ($1.25 billion)	2021		1,244.3		1,243.7
Series B private placement senior notes ($250 million)	2023		249.2		249.1
Seven year 2016 senior notes ($400 million)	2023		396.8		-
Ten year 2015 senior notes (€575 million)	2025		634.3		601.8
Thirty year 2011 senior notes ($750 million)	2041		738.5		738.3
Capital lease obligations			5.7		5.6
Other			85.8		91.5
Total debt			6,552.8		5,829.6
Long-term debt, current maturities			(1,455.8)		(1,569.4)
Total long-term debt			$ 5,097.0		$ 4,260.2

Term Loans

In January 2016, the company repaid the remaining $125 million of its term loan borrowings.

Public Notes

In January 2016, the company issued $800 million of debt securities consisting of a $400 million aggregate principal three year fixed rate note with a coupon rate of 2.00% and a $400 million aggregate principal seven year fixed rate note with a coupon rate of 3.25% (“Public Notes”). The proceeds were used to repay a portion of the company’s outstanding commercial paper, repay the remaining term loan balance, and for general corporate purposes.

The Public Notes may be redeemed by the company at its option at redemption prices that include accrued and unpaid interest and a make-whole premium. Upon the occurrence of a change of control accompanied by a downgrade of the Public Notes below investment grade rating, within a specified time period, the company will be required to offer to repurchase the Public Notes at a price equal to 101% of the aggregate principal amount thereof, plus any accrued and unpaid interest to the date of repurchase. The Public Notes are senior unsecured and unsubordinated obligations of the company and rank equally with all other senior and unsubordinated indebtedness of the company.

Other Debt

During the first quarter of 2015, the company acquired the beneficial interest in the trust owning the leased Naperville facility resulting in debt assumption of $100.2 million and the addition of $135.2 million in property, plant and equipment. Cash paid as a result of the transaction was $19.8 million. The assumed debt is reflected within the "Other" line of the table above. The assumption of debt and the majority of the property, plant and equipment addition represent non-cash financing and investing activities, respectively.

Covenants

The company is in compliance with its debt covenants as of June 30, 2016.

Net Interest Expense

Interest expense and interest income recognized during the second quarter and the first six months of 2016 and 2015 were as follows:



	Second Quarter Ended				Six Months Ended
	June 30				June 30
(millions)	2016		2015		2016		2015
Interest expense		$ 71.5		$ 63.5		$ 140.4		$ 128.7
Interest income		(6.2)		(2.3)		(9.0)		(5.0)
Interest expense, net		$ 65.3		$ 61.2		$ 131.4		$ 123.7