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Short-term and Long-term Debt
 12 Months Ended
Jan. 01, 2022
Debt Disclosure [Abstract]  
Short-term and Long-term Debt Short-term and Long-term Debt
Short-term and long-term debt as of 2021 and 2020 year end consisted of the following: 
(Amounts in millions)20212020
6.125% unsecured notes due 2021
$— $250.0 
3.25% unsecured notes due 2027
300.0 300.0 
4.10% unsecured notes due 2048
400.0 400.0 
3.10% unsecured notes due 2050
500.0 500.0 
Other debt*0.3 0.6 
1,200.3 1,450.6 
Less: notes payable and current maturities of long-term debt:
Current maturities of long-term debt
$— $(250.0)
Other notes*
(17.4)(18.5)
(17.4)(268.5)
Total long-term debt$1,182.9 $1,182.1 
* Includes the net effects of debt amortization costs and fair value adjustments related to interest rate swaps.
There are no annual maturities of Snap-on’s long-term debt and notes payable over the next five years.
Average notes payable outstanding, including commercial paper borrowings in 2020 and short-term credit facility borrowings in both years, were $16.7 million and $68.4 million in 2021 and 2020, respectively. The 2021 weighted-average interest rate on such borrowings of 8.39% compared with 2.98% in 2020. There were no commercial paper borrowings during 2021. Average commercial paper borrowings were $41.0 million in 2020 with a weighted-average interest rate of 1.53%. No commercial paper was outstanding as of year-end 2021 or 2020. There were no amounts borrowed under the short-term credit facility during 2021. Average short-term credit facility borrowings were $13.9 million in 2020 with a weighted-average interest rate of 1.7%. No amounts were outstanding under the short-term credit facility as of year-end 2021 or 2020. At 2021 year end, the weighted-average interest rate on outstanding notes payable of 8.39% compared with 8.87% in 2020. The 2021 year-end rate decreased primarily due to lower rates on local borrowings in emerging markets.
On April 27, 2020, Snap-on sold, at a discount, $500 million of unsecured 3.10% notes that mature on May 1, 2050 (the “2050 Notes”). Interest on the 2050 Notes accrues at a rate of 3.10% and is paid semi-annually. Snap-on used the $489.9 million net proceeds from the sale of the 2050 Notes, reflecting $4.4 million of transaction costs, for general corporate purposes, which included working capital, capital expenditures and acquisitions.
Snap-on has an $800 million multi-currency revolving credit facility that terminates on September 16, 2024 (the “Credit Facility”); no amounts were outstanding under the Credit Facility as of January 1, 2022. Borrowings under the Credit Facility bear interest at varying rates based on either: (i) Snap-on’s then-current, long-term debt ratings; or (ii) Snap-on’s then-current ratio of consolidated debt net of certain cash adjustments (“Consolidated Net Debt”) to earnings before interest, taxes, depreciation, amortization and certain other adjustments for the preceding four fiscal quarters then ended (the “Consolidated Net Debt to EBITDA Ratio”). The Credit Facility’s financial covenant requires that Snap-on maintain, as of each fiscal quarter end, either (i) a ratio not greater than 0.60 to 1.00 of Consolidated Net Debt to the sum of Consolidated Net Debt plus total equity and less accumulated other comprehensive income or loss (the “Leverage Ratio”); or (ii) a Consolidated Net Debt to EBITDA Ratio not greater than 3.50 to 1.00. Snap-on may, up to two times during any five-year period during the term of the Credit Facility (including any extensions thereof), elect to increase the maximum Leverage Ratio to 0.65 to 1.00 and/or increase the maximum Consolidated Net Debt to EBITDA Ratio to 4.00 to 1.00 for four consecutive fiscal quarters in connection with certain material acquisitions (as defined in the related credit agreement). As of January 1, 2022, the company’s actual ratios of 0.09 and 0.37 respectively, were both within the permitted ranges set forth in this financial covenant. Snap-on generally issues commercial paper to fund its financing needs on a short-term basis and uses the Credit Facility as back-up liquidity to support such commercial paper issuances.