Debt

3 Months Ended

Mar. 29, 2025

Debt

Debt

Note G – Debt

Short-term borrowings, including current portion of long-term debt, consist of the following:

	March 29,		December 31,
(thousands)	2025		2024
4.00% notes, due April 2025	$	350,000	$	349,808
Commercial paper		175,953		—
Other short-term borrowings		5,014		170
	$	530,967	$	349,978

The company has $500.0 million in uncommitted lines of credit. There were no outstanding borrowings under the uncommitted lines of credit at March 29, 2025 and December 31, 2024. The maturity for borrowings is generally short

term and is agreed upon with lenders at the time of each borrowing. The uncommitted lines of credit had a weighted-average effective interest rate of 4.82% and 5.18% at March 29, 2025 and December 31, 2024, respectively.

The company has a commercial paper program, and the maximum aggregate balance of commercial paper outstanding may not exceed the borrowing capacity of $1.2 billion. Amounts outstanding under the commercial paper program are backstopped by available commitments under the company’s revolving credit facility. The company had $176.0 million in outstanding borrowings under this program at March 29, 2025 and no outstanding borrowings at December 31, 2024. The commercial paper program had an effective interest rate of 4.79% and 5.21% at March 29, 2025 and December 31, 2024, respectively.

Long-term debt consists of the following:

	March 29,		December 31,
(thousands)	2025		2024
Revolving credit facility	$	—	$	30,000
North American asset securitization program		200,000		633,000
7.50% senior debentures, due 2027		110,287		110,266
3.875% notes, due 2028		497,948		497,775
5.15% notes, due 2029		495,437		495,209
2.95% notes, due 2032		495,713		495,576
5.875% notes, due 2034		495,095		494,986
Other obligations with various interest rates and due dates		18,041		16,971
	$	2,312,521	$	2,773,783

The 7.50% senior debentures are not redeemable prior to their maturity. All other notes may be called at the option of the company subject to “make whole” clauses.

The estimated fair market value of long-term debt, using quoted market prices, is as follows:

	March 29,		December 31,
(thousands)	2025		2024
7.50% senior debentures, due 2027	$	115,000	$	115,000
3.875% notes, due 2028		487,000		481,500
5.15% notes, due 2029		502,500		498,000
2.95% notes, due 2032		427,500		426,000
5.875% notes, due 2034		504,500		502,500

The carrying amount of the company’s other short-term borrowings, 4.00% notes, due April 2025, North American asset securitization program, commercial paper, and other obligations approximate their fair value.

The company has a $2.0 billion revolving credit facility maturing in September 2026. The facility may be used by the company for general corporate purposes including working capital in the ordinary course of business, letters of credit, repayment, prepayment or purchase of long-term indebtedness, acquisitions, and as support for the company’s commercial paper program, as applicable. Interest on borrowings under the revolving credit facility is calculated using a base rate or SOFR, plus a spread (1.08% at March 29, 2025), which is based on the company’s credit ratings, plus a credit spread adjustment of 0.10% or a weighted-average effective interest rate of 5.47% at March 29, 2025. The facility fee, which is based on the company’s credit ratings, was 0.175% of the total borrowing capacity at March 29, 2025. The company had no outstanding borrowings and $30.0 million in outstanding borrowings under the revolving credit facility at March 29, 2025 and December 31, 2024, respectively.

The company has a North American asset securitization program collateralized by accounts receivable of certain of its subsidiaries. The company may borrow up to $1.5 billion under the program which matures in September 2027. The program is conducted through AFC, a wholly-owned, bankruptcy remote subsidiary. The North American asset securitization program does not qualify for sale treatment. Accordingly, the accounts receivable and related debt obligation remain on the company’s consolidated balance sheets. Interest on borrowings is calculated using a base rate plus a spread (0.40% at March 29, 2025) plus a credit spread adjustment of 0.10% or an effective interest rate of 4.82% at March 29, 2025. The facility fee is 0.40% of the total borrowing capacity.

The company had $200.0 million and $633.0 million in outstanding borrowings under the North American asset securitization program at March 29, 2025 and December 31, 2024, respectively, which was included in “Long-term debt” on the company’s consolidated balance sheets. Total collateralized accounts receivable of approximately $2.6 billion and $3.0 billion were held by AFC and were included in “Accounts receivable, net” on the company’s consolidated balance sheets at March 29, 2025 and December 31, 2024, respectively. Any accounts receivable held by AFC would likely not be available to other creditors of the company in the event of bankruptcy or insolvency proceedings of the company before repayment of any outstanding borrowings under the North American asset securitization program.

Both the revolving credit facility and North American asset securitization program include terms and conditions that limit the incurrence of additional borrowings and require that certain financial ratios be maintained at designated levels. As of March 29, 2025, the company was in compliance with all such financial covenants.

Subsequent to the balance sheet date, the company repaid $350.0 million principal amount of its 4.00% notes due April 2025.

Interest and dividend income of $10.1 million and $19.5 million for the first quarter of 2025 and 2024, respectively, were recorded in “Interest and other financing expense, net” within the company’s consolidated statements of operations.