Debt and Financing Arrangements

9 Months Ended

Jan. 31, 2022

The following table summarizes the components of our long-term debt.


	January 31, 2022				April 30, 2021
	Principal Outstanding		Carrying Amount (A)		Principal Outstanding		Carrying Amount (A)
3.50% Senior Notes due October 15, 2021	$	—	$	—	$	750.0	$	753.5
3.00% Senior Notes due March 15, 2022	—		—		400.0		399.4
3.50% Senior Notes due March 15, 2025	1,000.0		997.4		1,000.0		996.8
3.38% Senior Notes due December 15, 2027	500.0		497.4		500.0		497.1
2.38% Senior Notes due March 15, 2030	500.0		496.1		500.0		495.7
2.13% Senior Notes due March 15, 2032	500.0		493.7		—		—
4.25% Senior Notes due March 15, 2035	650.0		644.6		650.0		644.3
2.75% Senior Notes due September 15, 2041	300.0		297.1		—		—
4.38% Senior Notes due March 15, 2045	600.0		587.5		600.0		587.1
3.55% Senior Notes due March 15, 2050	300.0		295.9		300.0		295.8
Total long-term debt	$	4,350.0	$	4,309.7	$	4,700.0	$	4,669.7
Current portion of long-term debt	—		—		1,150.0		1,152.9
Total long-term debt, less current portion	$	4,350.0	$	4,309.7	$	3,550.0	$	3,516.8

(A) Represents the carrying amount included in the Condensed Consolidated Balance Sheets, which includes the impact of capitalized debt issuance costs, offering discounts, and terminated interest rate contracts.

During the second quarter of 2022, we completed an offering of $800.0 in Senior Notes due March 15, 2032, and September 15, 2041. The Senior Notes include $7.2 of capitalized debt issuance costs and $2.4 of offering discounts to be amortized to interest expense over the time for which the debt is outstanding. The net proceeds from the offering were primarily used to repay $750.0 in principal of the Senior Notes due October 15, 2021. Furthermore, during the first quarter of 2022, we prepaid $400.0 in principal of the Senior Notes due March 15, 2022, and as a result, we recognized a net loss on extinguishment of $6.9, which primarily consisted of a make-whole payment and was included in other income (expense) – net in the Condensed Statement of Consolidated Income.

In August 2021, we entered into an unsecured revolving credit facility with a group of 11 banks, which provides for a revolving credit line of $2.0 billion and matures in August 2026, and terminated the previous $1.8 billion revolving credit facility. The new revolving credit facility includes $4.3 of capitalized debt issuance costs, which will be amortized to interest expense over the time for which the revolving credit facility is effective. Borrowings under the revolving credit facility bear interest on the prevailing U.S. Prime Rate, London Interbank Offered Rate, Euro Interbank Offered Rate, or Canadian Dealer Offered Rate, based on our election. Interest is payable either on a quarterly basis or at the end of the borrowing term. We have not drawn upon the new revolving credit facility as of January 31, 2022, and did not have a balance outstanding under the previous revolving credit facility as of April 30, 2021.

We participate in a commercial paper program under which we can issue short-term, unsecured commercial paper not to exceed $2.0 billion, which was increased from $1.8 billion in August 2021, in conjunction with entering into the $2.0 billion unsecured revolving credit facility. The commercial paper program is backed by our revolving credit facility and reduces what we can borrow under the revolving credit facility by the amount of commercial paper outstanding. Commercial paper is used as a continuing source of short-term financing for general corporate purposes. As of January 31, 2022, and April 30, 2021, we had $94.0 and $82.0 of short-term borrowings outstanding, respectively, which were both issued under our commercial paper program at a weighted-average interest rate of 0.17 percent.

Interest paid totaled $8.6 and $8.7 for the three months ended January 31, 2022 and 2021, respectively, and $90.4 and $95.1 for the nine months ended January 31, 2022 and 2021, respectively. This differs from interest expense due to the timing of interest payments, capitalized interest, the effect of interest rate contracts, amortization of debt issuance costs and discounts, and payment of other debt fees.

Our debt instruments contain certain covenant restrictions, including an interest coverage ratio. Our financial covenant restrictions were amended to remove the leverage ratio in August 2021, in conjunction with entering into the $2.0 billion unsecured revolving credit facility. As of January 31, 2022, we are in compliance with all covenants.