DEBT AND INTEREST

9 Months Ended

Sep. 30, 2024

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 as of September 30, 2024 and December 31, 2023.

	September 30		December 31
(millions)	2024		2023
Short-term debt
Notes payable		$5.0		$1.8
Long-term debt, current maturities		638.0		628.6
Total		$643.0		$630.4

Lines of Credit

As of September 30, 2024, the Company has a $2.0 billion multi-year 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 either September 30, 2024 or 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 September 30, 2024 or December 31, 2023.

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 September 30, 2024 and December 31, 2023, the Company had $5.0 million and $1.8 million, respectively, outstanding under these credit lines.

Long-term Debt

The following table provides the components of the Company’s long-term debt obligations, including current maturities, as of September 30, 2024 and December 31, 2023.

	Maturity	September 30		December 31
(millions)	by Year	2024		2023
Long-term debt
Public notes (2024 principal amount)
Seven year 2016 senior notes (€575 million)	2024		$-		$625.9
Ten year 2015 senior notes (€575 million)	2025		634.7		625.1
Ten year 2016 senior notes ($750 million)	2026		737.0		728.2
Ten year 2017 senior notes ($500 million)	2027		466.5		448.3
Six Year 2021 senior notes ($500 million)	2027		498.0		497.4
Five Year 2022 senior notes ($500 million)	2028		495.2		494.2
Ten year 2020 senior notes ($698 million)	2030		666.9		662.7
Ten year 2020 senior notes ($600 million)	2031		566.8		561.0
Eleven year 2021 senior notes ($650 million)	2032		645.6		645.2
Thirty year 2011 senior notes ($389 million)	2041		384.9		384.7
Thirty year 2016 senior notes ($200 million)	2046		197.5		197.4
Thirty year 2017 senior notes ($484 million)	2047		428.0		426.8
Thirty year 2020 senior notes ($500 million)	2050		491.3		491.1
Thirty year 2021 senior notes ($850 million)	2051		839.6		839.3
Thirty-four year 2021 senior notes ($685 million)	2055		540.7		539.2
Finance lease obligations and other			19.8		13.5
Total debt			7,612.5		8,180.0
Long-term debt, current maturities			(638.0)		(628.6)
Total long-term debt			$6,974.5		$7,551.4

Public Notes

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.

Covenants

The Company is in compliance with all covenants under the Company’s outstanding indebtedness as of September 30, 2024.

Net Interest Expense

Interest expense and interest income recognized during the third quarter and first nine months of 2024 and 2023 were as follows:

	Third Quarter Ended				Nine Months Ended
	September 30				September 30
(millions)	2024		2023		2024		2023
Interest expense		$86.4		$91.3		$261.1		$254.1
Interest income		(16.0)		(17.0)		(40.3)		(27.8)
Interest expense, net		$70.4		$74.3		$220.8		$226.3

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