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SHORT AND LONG-TERM DEBT
 12 Months Ended
Dec. 31, 2024
Debt Disclosure [Abstract]  
SHORT AND LONG-TERM DEBT SHORT AND LONG-TERM DEBT
Short-term Debt
As a source of short-term financing, we utilize cash on hand and commercial paper or bank loans with an original maturity of three months or less. We maintain a $1.35 billion unsecured revolving credit facility with the option to increase borrowings by an additional $500 million with the consent of the lenders. This facility is scheduled to expire on April 26, 2028; however, we may extend the termination date for up to two additional one-year periods upon notice to the administrative agent under the facility.
The unsecured committed revolving credit agreement contains a financial covenant whereby the ratio of (a) pre-tax income from operations from the most recent four fiscal quarters to (b) consolidated interest expense for the most recent four fiscal quarters may not be less than 2.0 to 1.0 at the end of each fiscal quarter. The credit agreement also contains customary representations, warranties and events of default. Payment of outstanding advances may be accelerated, at the option of the lenders, should we default in our obligation under the credit agreement. As of December 31, 2024, we are in compliance with all affirmative and negative covenants and the financial covenant pertaining to our credit agreement. There were no significant compensating balance agreements that legally restricted these funds.
In addition to the revolving credit facility, we maintain lines of credit with domestic and international commercial banks. Our credit limit in various currencies was $391,279 at December 31, 2024 and $411,553 at December 31, 2023. These lines permit us to borrow at the respective banks’ prime commercial interest rates, or lower. Commitment fees relating to our revolving credit facility and lines of credit are not material. Short-term debt consisted of the following:
December 31, 2024December 31, 2023
Short-term foreign bank borrowings against lines of credit$161,364$192,278
U.S. commercial paper1,145,612527,561
Total short-term debt$1,306,976$719,839
Weighted average interest rate on outstanding commercial paper4.5 %5.4 %
The maximum amount of short-term borrowings outstanding during 2024 and 2023 was $1,321,274 and $859,773, respectively. The weighted-average interest rate on short-term borrowings outstanding was 4.8% as of December 31, 2024 and 5.8% as of December 31, 2023.
Long-term Debt
Long-term debt consisted of the following:
December 31,
Maturity Date20242023
2.050% Notes (1)
November 15, 2024— 300,000 
0.900% Notes
June 1, 2025300,000 300,000 
3.200% Notes
August 21, 2025300,000 300,000 
2.300% Notes
August 15, 2026500,000 500,000 
7.200% Debentures
August 15, 2027193,639 193,639 
4.250% Notes (2)
May 4, 2028350,000 350,000 
2.450% Notes
November 15, 2029300,000 300,000 
1.700% Notes
June 1, 2030350,000 350,000 
4.500% Notes (2)
May 4, 2033400,000 400,000 
3.375% Notes
August 15, 2046300,000 300,000 
3.125% Notes
November 15, 2049400,000400,000
2.650% Notes
June 1, 2050350,000350,000
Finance lease obligations (see Note 7)
73,80276,385
Net impact of interest rate swaps, debt issuance costs and unamortized debt discounts(22,266)(25,834)
Total long-term debt3,795,175 4,094,190 
Less—current portion604,965305,058
Long-term portion$3,190,210 $3,789,132 
(1) In November 2024, we repaid $300,000 of 2.050% Notes due upon their maturity.
(2) During the second quarter of 2023, we issued $350,000 of 4.250% Notes due in May 2028 and $400,000 of 4.500% Notes due in May 2033 (together, the “2023 Notes”). Proceeds from the issuance of the 2023 Notes, net of discounts and issuance costs, totaled $744,092. The 2023 Notes were issued under a shelf registration on Form S-3 filed in May 2021 that registered an indeterminate amount of debt securities.
Aggregate annual maturities of our long-term Notes (excluding finance lease obligations and net impact of interest rate swaps, debt issuance costs and unamortized debt discounts) are as follows for the years ending December 31:
2025$600,000 
2026500,000 
2027193,639 
2028350,000 
2029300,000 
Thereafter1,800,000 
Our debt is principally unsecured and of equal priority. None of our debt is convertible into our Common Stock.
Interest Expense
Net interest expense consists of the following:
For the years ended December 31,202420232022
Interest expense$194,240 $176,066 $148,226 
Capitalized interest
(19,923)(14,555)(8,131)
Interest expense
174,317 161,511 140,095 
Interest income(8,662)(9,726)(2,538)
Interest expense, net
$165,655 $151,785 $137,557