Note 9: Short-term and Long-term Debt

Short-term and long-term debt as of 2015 and 2014 year end consisted of the following:


(Amounts in millions)	2015		2014
5.50% unsecured notes due 2017	$	150.0	$	150.0
4.25% unsecured notes due 2018		250.0		250.0
6.70% unsecured notes due 2019		200.0		200.0
6.125% unsecured notes due 2021		250.0		250.0
Other debt*		30.1		69.3

		880.1		919.3
Less: notes payable		(18.4)		(56.6)

Total long-term debt	$	861.7	$	862.7

*	Includes fair value adjustments related to interest rate swaps.

As of 2015 year end, notes payable totaled $18.4 million; there were no commercial paper borrowings outstanding as of 2015 year end. Notes payable of $56.6 million as of 2014 year end included $37.0 million of commercial paper borrowings and $19.6 million of other notes. There were no current maturities of long-term debt as of 2015 and 2014 year end.

The annual maturities of Snap-on’s long-term debt and notes payable over the next five years are $18.4 million in 2016, $150.0 million on January 15, 2017, $250.0 million in 2018, $200.0 million in 2019 and no maturities in 2020. As of 2015 year end, the $150 million of unsecured notes that mature on January 15, 2017, were included in “Long-term debt” on the accompanying Consolidated Balance Sheet as their scheduled maturity was in excess of one year of the 2015 year-end balance sheet date.

Average notes payable outstanding were $78.5 million in 2015 and $45.4 million in 2014. The weighted-average interest rate on notes payable was 4.36% in 2015 and 5.42% in 2014. As of 2015 and 2014 year end, the weighted-average interest rate on outstanding notes payable was 15.82% and 4.86%, respectively. The weighted-average interest rates in both years reflect local borrowings in emerging growth markets where interest rates are generally higher. The lower weighted-average interest rate of 4.86% on outstanding notes payable as of 2014 year end benefited from lower interest rates on commercial paper borrowings; no commercial paper was outstanding at 2015 year end.

On December 15, 2015, Snap-on amended and restated its $700 million multi-currency revolving credit facility that was set to terminate on September 27, 2018, by entering into a new five-year, $700 million multi-currency revolving credit facility that terminates on December 15, 2020 (the “Credit Facility”); no amounts were outstanding under the Credit Facility as of 2015 year end. Borrowings under the Credit Facility bear interest at varying rates based on Snap-on’s then-current, long-term debt ratings. 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 (consolidated debt net of certain cash adjustments) to the sum of such consolidated net debt plus total equity and less accumulated other comprehensive income or loss (the “Debt Ratio”); or (ii) a ratio not greater than 3.50 to 1.00 of such consolidated net debt to earnings before interest, taxes, depreciation, amortization and certain other adjustments for the preceding four fiscal quarters then ended (the “Debt to EBITDA Ratio”). Snap-on may, up to two times during any five-year period during the term of the Credit Facility (including any extensions thereof), increase the maximum Debt Ratio to 0.65 to 1.00 and/or increase the maximum Debt to EBITDA Ratio to 3.75 to 1.00 for four consecutive fiscal quarters in connection with certain material acquisitions (as defined in the related credit agreement). As of 2015 year end, the company’s actual ratios of 0.23 and 0.95, respectively, were both within the permitted ranges set forth in this financial covenant.