XML 136 R16.htm IDEA: XBRL DOCUMENT v3.19.3.a.u2
Debt
 12 Months Ended
Dec. 31, 2019
Debt Disclosure [Abstract]  
Debt Debt
Details of the Company's debt at December 31 were as follows:
20192018
5.75% debentures due November 2040$599,244  $599,208  
4.375% debentures due November 2021249,428  249,116  
9.2% debentures due August 20214,318  4,315  
1.00% Euro loan due May 2021167,272  169,976  
Term loan, due May 2020200,000  —  
Term loan, due July 2022146,569  158,949  
Commercial paper, average rate of 2.40% in 2019 and 2.15% in 2018250,000  120,000  
Other foreign denominated debt, average rate of 5.3% in 2019 and 3.7% in 201816,734  57,867  
Finance lease obligations33,077  —  
Other notes14,727  25,731  
Total debt1,681,369  1,385,162  
Less current portion and short-term notes488,234  195,445  
Long-term debt$1,193,135  $1,189,717  
On May 17, 2019, the Company entered into a 364-day, $200,000 term loan with Wells Fargo Bank, National Association. The full $200,000 was drawn from this facility on May 20, 2019, and the proceeds were used to make voluntary contributions to the Company's U.S. defined benefit pension plans. This unsecured loan has a 364-day term and the Company has a one-time option to request an extension of the term for an additional 364 days if it meets certain conditions. Interest is assessed at the London Interbank Offered Rate (LIBOR) plus a margin based on a pricing grid that uses the Company's credit ratings. The LIBOR margin at December 31, 2019 was 100 basis points. There is no required amortization and repayment can be accelerated at any time at the discretion of the Company.
On July 20, 2017, the Company entered into a Credit Agreement in connection with a new $750,000 bank credit facility with a syndicate of eight banks replacing an existing credit facility entered into on October 2, 2014, and reflecting substantially the same terms and conditions. Included in the new facility are a $500,000 five-year revolving credit facility and a $250,000 five-year term loan. Based on the pricing grid in the Credit Agreement and the Company's current credit ratings, the borrowing has an all-in drawn margin of 112.5 basis points above the LIBOR. Borrowings under the Credit Agreement are pre-payable at any time at the discretion of the Company and the term loan has annual amortization payments totaling $12,500. Proceeds from this term loan were used to repay an earlier term loan and to partially fund the Clear Lam acquisition. During 2018, the Company prepaid an additional $75,000 of the term loan.
The $500,000 revolving credit facility supports the Company's $500,000 commercial paper program. If circumstances were to prevent the Company from issuing commercial paper, it has the contractual right to draw funds directly on the underlying bank credit facility. The Company had $250,000 of outstanding commercial paper at December 31, 2019 and $120,000 at December 31, 2018.
In addition to the $500,000 committed revolving bank credit facility, the Company had approximately $237,000 available under unused short-term lines of credit at December 31, 2019. These short-term lines of credit are for general Company purposes, with interest at mutually agreed-upon rates.
Certain of the Company’s debt agreements impose restrictions with respect to the maintenance of financial ratios and the disposition of assets. The most restrictive covenants currently require the Company to maintain a minimum level of interest coverage, and a minimum level of net worth, as defined. As of December 31, 2019, the Company had substantial tolerance above the minimum levels required under these covenants.
The principal requirements of debt maturing in the next five years are:
  
20202021202220232024
Debt maturities by year$488,234  $444,715  $130,812  $6,639  $3,646