Long-Term Debt

9 Months Ended

Sep. 30, 2022

Long-Term Debt:

Long-term debt at September 30, 2022 and December 31, 2021 consisted of the following (in thousands):


	September 30,		December 31,
	2022		2021
1.125% notes due 2025	$	361,818	$	426,571
1.625% notes due 2028	479,700		565,550

3.45% Senior notes due 2029	171,612		171,612
4.15% Senior notes due 2024	—		425,000
4.65% Senior notes due 2027	650,000		—
5.05% Senior notes due 2032	600,000		—
5.45% Senior notes due 2044	350,000		350,000
5.65% Senior notes due 2052	450,000		—

Credit facilities	250,000		—
Commercial paper notes	—		388,500

Variable-rate foreign bank loans	2,763		5,226

Finance lease obligations	71,975		75,431
Other	11,252		—
Unamortized discount and debt issuance costs	(29,151)		(13,651)
Total long-term debt	3,369,969		2,394,239
Less amounts due within one year	251,216		389,920
Long-term debt, less current portion	$	3,118,753	$	2,004,319

On May 13, 2022, the Company issued a series of notes (collectively, the “2022 Notes”) as follows:

•$650.0 million aggregate principal amount of senior notes, bearing interest at a rate of 4.65% payable semi-annually on June 1 and December 1 of each year, beginning on December 1, 2022. The effective interest rate on these senior notes is approximately 4.84%. These senior notes mature on June 1, 2027.

•$600.0 million aggregate principal amount of senior notes, bearing interest at a rate of 5.05% payable semi-annually on June 1 and December 1 of each year, beginning on December 1, 2022. The effective interest rate on these senior notes is approximately 5.18%. These senior notes mature on June 1, 2032.

•$450.0 million aggregate principal amount of senior notes, bearing interest at a rate of 5.65% payable semi-annually on June 1 and December 1 of each year, beginning on December 1, 2022. The effective interest rate on these senior notes is approximately 5.71%. These senior notes mature on June 1, 2052.

The net proceeds from the issuance of the 2022 Notes were used to repay the balance of the commercial paper notes, the remaining balance of $425.0 million of the 4.15% Senior Notes due 2024 (the “2024 Notes”) and for general corporate purposes. The 2024 Notes were originally due to mature on December 15, 2024 and bore interest at a rate of 4.15%. During the nine-month period ended September 30, 2022, the Company recorded a loss on early extinguishment of debt of $19.2 million in Interest and financing expenses, representing the tender premiums, fees, unamortized discounts and unamortized deferred financing costs from the redemption of the 2024 Notes. In addition, the loss on early extinguishment of debt includes the accelerated amortization of the interest rate swap associated with the 2024 Notes from Accumulated other comprehensive income.

On October 28, 2022, we amended our revolving, unsecured credit agreement (the “2018 Credit Agreement”), which provides for borrowings of up to $1.5 billion and matures on October 28, 2027. This credit agreement was originally dated as of June 21, 2018, and was previously amended on August 14, 2019, May 11, 2020 and December 10, 2021. Borrowings under the 2018 Credit Agreement bear interest at variable rates based on a benchmark rate depending on the currency in which the loans are denominated, plus an applicable margin which ranges from 0.91% to 1.375%, depending on the Company’s credit rating from Standard & Poor’s Ratings Services LLC, Moody’s Investors Services, Inc. and Fitch Ratings, Inc. With respect to loans denominated in U.S. dollars, interest is calculated using the term Secured Overnight Financing Rate (“SOFR”) plus a term SOFR adjustment of 0.10%, plus the applicable margin.

During the second quarter of 2022 the Company drew $250 million under the unsecured credit facility originally entered into on August 14, 2019, as amended and restated on December 15, 2020 and again on December 10, 2021 (the “2019 Credit Facility”) for general corporate purposes. The applicable margin on the 2019 Credit Facility was 1.125% at September 30, 2022. On October 24, 2022, the 2019 Credit Facility was terminated, with the outstanding balance of $250 million repaid using cash on hand.

In the first quarter of 2021, the Company made certain debt principal payments using proceeds from the February 2021 underwritten public offering of common stock. As a result, included in Interest and financing expenses for the nine-month period ended September 30, 2021 is a loss on early extinguishment of debt of $29.0 million representing the tender premiums, fees, unamortized discounts and unamortized deferred financing costs from the redemption of this debt.

Prior to repayment in the first quarter of 2021, the carrying value of the 1.875% Euro-denominated senior notes was designated as an effective hedge of the net investment in certain foreign subsidiaries where the Euro serves as the functional currency, and gains or losses on the revaluation of these senior notes to our reporting currency were recorded in accumulated other comprehensive loss. Upon repayment of these notes, this net investment hedge was discontinued. The balance of foreign exchange revaluation gains and losses associated with this discontinued net investment hedge will remain within accumulated other comprehensive loss until the hedged net investment is sold or liquidated. Prior to the net investment hedge being discontinued, we recorded a gain of $5.1 million (net of income taxes) during the nine-month period ended September 30, 2021 in accumulated other comprehensive loss.