DEBT AND INTEREST

12 Months Ended

Dec. 31, 2023

DEBT AND INTEREST

DEBT AND INTEREST

6. DEBT AND INTEREST

Short-term Debt

The following table provides the components of the Company’s short-term debt obligations, along with applicable interest rates as of December 31, 2023 and 2022:

	2023				2022
			Average				Average
	Carrying		Interest		Carrying		Interest
(millions)	Value		Rate		Value		Rate
Short-term debt
Commercial paper		$-	-	%		$-	-	%
Notes payable		1.8	8.29	%		3.7	7.28	%
Long-term debt, current maturities		628.6				501.4
Total		$630.4				$505.1

Line of Credit

As of December 31, 2023, the Company had in place a $2.0 billion multi-currency revolving credit facility which expires in April 2026. The credit facility has been established with a diverse syndicate of banks and supports the Company’s U.S. and Euro commercial paper programs. There were no borrowings under the Company’s credit facility as of December 31, 2023 and 2022.

The Company has $346 million of available bank supported letters of credit, surety bonds and guarantees available in support of its commercial business transactions of which $155 million is outstanding as of December 31, 2023.

Commercial Paper

The Company’s commercial paper program is used as a potential source of liquidity and consists of a $2.0 billion U.S. commercial paper program and a $2.0 billion Euro commercial paper program. The maximum aggregate amount of commercial paper that may be issued by the Company under its commercial paper programs may not exceed $2.0 billion.

The Company had no outstanding commercial paper under its U.S. and Euro commercial paper programs as of December 31, 2023 and 2022.

As of December 31, 2023, the Company’s short-term borrowing program was rated A-2 by Standard & Poor’s, P-2 by Moody’s and F-1 by Fitch.

Notes Payable

The Company’s notes payable consists of uncommitted credit lines with major international banks and financial institutions, primarily to support global cash pooling structures. As of December 31, 2023 and 2022, the Company had $1.8 million and $3.7 million, respectively, outstanding under these credit lines. Approximately $1,829 million and $1,925 million of these credit lines were available for use as of December 31, 2023 and 2022, respectively.

Long-term Debt

The following table provides the components of the Company’s long-term debt obligations, along with applicable interest rates as of December 31, 2023 and 2022:

		2023								2022
				Stated		Effective				Stated		Effective
	Maturity	Carrying		Interest		Interest		Carrying		Interest		Interest
(millions)	by Year	Value		Rate		Rate		Value		Rate		Rate
Long-term debt
Public notes (2023 principal amount)
Two year 2021 senior notes ($500 million)	2023		$-	-	%	-	%		$498.7	0.90	%	1.19	%
Seven year 2016 senior notes (€575 million)	2024		625.9	1.00	%	1.19	%		596.9	1.00	%	1.03	%
Ten year 2015 senior notes (€575 million)	2025		625.1	2.63	%	2.88	%		596.7	2.63	%	2.81	%
Ten year 2016 senior notes ($750 million)	2026		728.2	2.70	%	4.07	%		721.1	2.70	%	3.21	%
Ten year 2017 senior notes ($500 million)	2027		448.3	3.25	%	8.43	%		433.9	3.25	%	4.77	%
Six Year 2021 senior notes ($500 million)	2027		497.4	1.65	%	1.83	%		496.5	1.65	%	1.83	%
Five Year 2022 senior notes ($500 million)	2028		494.2	5.25	%	5.60	%		492.7	5.25	%	5.36	%
Ten year 2020 senior notes ($698 million)	2030		662.7	4.80	%	6.19	%		653.5	4.80	%	3.72	%
Ten year 2020 senior notes ($600 million)	2031		561.0	1.30	%	3.21	%		555.2	1.30	%	1.70	%
Eleven year 2021 senior notes ($650 million)	2032		645.2	2.13	%	2.06	%		644.6	2.13	%	2.24	%
Thirty year 2011 senior notes ($389 million)	2041		384.7	5.50	%	5.62	%		384.5	5.50	%	5.62	%
Thirty year 2016 senior notes ($200 million)	2046		197.4	3.70	%	3.80	%		197.3	3.70	%	3.81	%
Thirty year 2017 senior notes ($484 million)	2047		426.8	3.95	%	4.79	%		425.5	3.95	%	4.79	%
Thirty year 2020 senior notes ($500 million)	2050		491.1	2.13	%	2.23	%		490.7	2.13	%	2.23	%
Thirty year 2021 senior notes ($850 million)	2051		839.3	2.70	%	2.78	%		838.9	2.70	%	2.78	%
Thirty-four year 2021 senior notes ($685 million)	2055		539.2	2.75	%	3.86	%		537.2	2.75	%	3.86	%
Finance lease obligations and other			13.5						12.8
Total debt			8,180.0						8,576.7
Long-term debt, current maturities			(628.6)						(501.4)
Total long-term debt			$7,551.4						$8,075.3

Public Notes

In November 2022, the Company issued $500 million in aggregate principal five year fixed rate notes with a coupon rate of 5.25% (“New 5-Year Note”). The proceeds are intended to be used for general corporate purposes, which may include, without limitation, repayment of commercial paper borrowings or other indebtedness. The notes mature January 2028.

The Company’s 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 would 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.

In January 2024, the Company repaid €575 million ($630 million) of long-term debt.

Covenants and Future Maturities

The Company is in compliance with all covenants under the Company’s outstanding indebtedness at December 31, 2023.

As of December 31, 2023, the aggregate annual maturities of long-term debt for the next five years were:

(millions)
2024	$629
2025	634
2026	729
2027	946
2028	495

Net Interest Expense

Interest expense and interest income incurred during 2023, 2022 and 2021 were as follows:

(millions)	2023		2022		2021
Interest expense		$348.9		$252.1		$230.6
Interest income		(52.2)		(8.5)		(12.3)
Interest expense, net		$296.7		$243.6		$218.3

Interest expense generally includes the expense associated with the interest on the Company’s outstanding borrowings. Interest expense also includes the amortization of debt issuance costs and debt discounts, which are both recognized over the term of the related debt.

During 2021, the Company issued, exchanged and retired certain long-term debt, incurring debt refinancing charges of $32.3 million ($28.4 million after tax), which are included as a component of interest expense, net on the Consolidated Statements of Income.