LONG-TERM DEBT AND FINANCING ARRANGEMENTS

9 Months Ended

Oct. 02, 2021

LONG-TERM DEBT AND FINANCING ARRANGEMENTS

Long-term debt and financing arrangements at October 2, 2021 and January 2, 2021 are as follows:


		October 2, 2021												January 2, 2021
(Millions of Dollars)	Interest Rate	Original Notional		Unamortized Discount		Unamortized Gain/(Loss) Terminated Swaps 1		Purchase Accounting FV Adjustment		Deferred Financing Fees		Carrying Value		Carrying Value
Notes payable due 2026	3.40%	$	500.0	$	(0.5)	$	—	$	—	$	(1.9)	$	497.6	$	497.2
Notes payable due 2028	7.05%	150.0		—		7.4		7.1		—		164.5		166.1
Notes payable due 2028	4.25%	500.0		(0.3)		—		—		(3.1)		496.6		496.2
Notes payable due 2030	2.30%	750.0		(2.1)		—		—		(4.4)		743.5		742.9
Notes payable due 2040	5.20%	400.0		(0.2)		(27.9)		—		(2.6)		369.3		368.1
Notes payable due 2048	4.85%	500.0		(0.5)		—		—		(5.0)		494.5		494.3
Notes payable due 2050	2.75%	750.0		(1.9)		—		—		(8.1)		740.0		739.9
Notes payable due 2060 (junior subordinated)	4.00%	750.0		—		—		—		(9.1)		740.9		740.7
Long-term debt2		$	4,300.0	$	(5.5)	$	(20.5)	$	7.1	$	(34.2)	$	4,246.9	$	4,245.4

1Unamortized gain/(loss) associated with interest rate swaps are more fully discussed in Note I, Financial Instruments.

2There are no current maturities of long-term debt.

In October 2021, the Company increased its commercial paper program from $3.0 billion to $3.5 billion, which includes Euro denominated borrowings in addition to U.S. Dollars. As of October 2, 2021, the Company had $147.0 million of borrowings outstanding. As of January 2, 2021, there were no borrowings outstanding.

In September 2021, the Company amended and restated its existing five-year $2.0 billion committed credit facility with the concurrent execution of a new five-year $2.5 billion committed credit facility (the “5-Year Credit Agreement”). Borrowings under the 5-Year Credit Agreement may be made in U.S. Dollars, Euros or Pounds Sterling. A sub-limit amount of $814.3 million is designated for swing line advances which may be drawn in Euros pursuant to the terms of the 5-Year Credit Agreement. Borrowings bear interest at a floating rate plus an applicable margin dependent upon the denomination of the borrowing and specific terms of the 5-Year Credit Agreement. The Company must repay all advances under the 5-Year Credit Agreement by the earlier of September 8, 2026 or upon termination. The 5-Year Credit Agreement is designated to be a liquidity back-stop for the Company's $3.5 billion U.S. Dollar and Euro commercial paper program. As of October 2, 2021, and January 2, 2021, the Company had not drawn on its five-year committed credit facility.

In September 2021, the Company terminated its 364-Day $1.0 billion credit facility and concurrently executed a new 364-Day $1.0 billion committed credit facility (the "364-Day Credit Agreement"). Borrowings under the 364-Day Credit Agreement may be made in U.S. Dollars or Euros and bear interest at a floating rate plus an applicable margin dependent upon the denomination of the borrowing and pursuant to the terms of the 364-Day Credit Agreement. The Company must repay all advances under the 364-Day Credit Agreement by the earlier of September 7, 2022 or upon termination. The Company may, however, convert all advances outstanding upon termination into a term loan that shall be repaid in full no later than the first anniversary of the termination date provided that the Company, among other things, pays a fee to the administrative agent for the account of each lender. The 364-Day Credit Agreement serves as part of the liquidity back-stop for the Company’s $3.5 billion U.S. Dollar and Euro commercial paper program. As of October 2, 2021, and January 2, 2021, the Company had not drawn on its 364-Day committed credit facility.