DEBT

12 Months Ended

Dec. 31, 2021

DEBT

DEBT

NOTE 9 – DEBT

At December 31, 2021 and 2020, debt consisted of the following:

	December 31,
	2021		2020
Long-term debt
Senior Unsecured Notes due through 2045, interest at 2.8% to 4.0% (net of debt issuance costs of $1,074 and $1,178 at December 31, 2021 and 2020, respectively)	$	704,313	$	704,886
Other borrowings due through 2030, interest up to 2.2%		13,542		10,681
		717,855		715,567
Less current portion		766		111
Long-term debt, less current portion		717,089		715,456
Short-term debt
Amounts due banks, weighted average interest at 1.8% in 2021 and 17.9% in 2020		51,964		2,623
Current portion long-term debt		766		111
Total short-term debt		52,730		2,734
Total debt	$	769,819	$	718,190

At December 31, 2021 and 2020, the fair value of long-term debt, including the current portion, was approximately $776,655 and $793,591, respectively, which was determined using available market information and methodologies requiring judgment. The carrying value of this debt at such dates was $717,855 and $715,567, respectively. Since judgment is required in interpreting market information, the fair value of the debt is not necessarily the amount which could be realized in a current market exchange.

Senior Unsecured Notes

On April 1, 2015 and October 20, 2016, the Company entered into separate Note Purchase Agreements pursuant to which it issued senior unsecured notes (the "Notes") through a private placement. Interest on the Notes is paid semi-annually. The proceeds of the Notes were used for general corporate purposes. The Notes contain certain affirmative and negative covenants. As of December 31, 2021, the Company was in compliance with all of its debt covenants relating to the Notes.

The maturity and interest rates of the 2015 Notes and 2016 Notes are as follows:

	Amount		Maturity Date	Interest Rate
2015 Notes
Series A	$	100,000	August 20, 2025	3.15	%
Series B		100,000	August 20, 2030	3.35	%
Series C		50,000	April 1, 2035	3.61	%
Series D		100,000	April 1, 2045	4.02	%
2016 Notes
Series A	$	100,000	October 20, 2028	2.75	%
Series B		100,000	October 20, 2033	3.03	%
Series C		100,000	October 20, 2037	3.27	%
Series D		50,000	October 20, 2041	3.52	%

The Company’s total weighted average effective interest rate and remaining weighted average term, inclusive of the 2015 Notes and 2016 Notes, is 3.3% and 12.4 years, respectively.

Revolving Credit Agreement

On April 23, 2021, the Company amended and restated the agreement governing its line of credit by entering into the Second Amended and Restated Credit Agreement (“Credit Agreement”). The Credit Agreement has a line of credit totaling $500,000, has a term of 5 years with a maturity date of April 23, 2026 and may be increased, subject to certain conditions including the consent of its lenders, by an additional amount up to $150,000. The interest rate on borrowings is based on LIBOR plus a spread based on the Company’s net leverage ratio. The Credit Agreement contains customary representations and warranties, as well as customary affirmative, negative and financial covenants for credit facilities of this type (subject to negotiated baskets and exceptions), including limitations on the Company and its subsidiaries with respect to liens, investments, distributions, mergers and acquisitions, dispositions of assets and transactions with affiliates. As of December 31, 2021, the Company was in compliance with all of its covenants and had $40,000 of outstanding borrowings under the Credit Agreement.

The Company has other lines of credit totaling $91,309. As of December 31, 2021 the Company was in compliance with all of its covenants and had $11,964 outstanding at December 31, 2021.

Shelf Agreements

On November 27, 2018, the Company entered into seven uncommitted master note facilities (the "Shelf Agreements") that allow borrowings up to $700,000 in the aggregate. The Shelf Agreements have a term of 5 years and the average life of borrowings cannot exceed 15 years. The Company is required to comply with covenants similar to those contained in the 2015 Notes and 2016 Notes. As of December 31, 2021, the Company was in compliance with all of its covenants and had no outstanding borrowings under the Shelf Agreements.

Other

Maturities of long-term debt, including payments for amounts due banks, for the five years succeeding December 31, 2021 are $52,730 in 2022, $11,269 in 2023, $228 in 2024, $100,228 in 2025, $228 in 2026 and $600,911 thereafter. Total interest paid was $23,752 in 2021, $26,332 in 2020 and $24,950 in 2019. The difference between interest paid and interest expense is due to the accrual of interest associated with the Senior Unsecured Notes and interest rate derivative contracts discussed in Note 15 to the consolidated financial statements.