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Notes Payable and Long-Term Debt | 12 Months Ended
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Dec. 31, 2016
Debt Disclosure [Abstract] |
Notes payable and long-term debt | NOTES PAYABLE AND LONG-TERM DEBT As of December 31, 2016 and 2015, the Company had short-term and long-term debt outstanding as follows:
| December 31,
(millions of dollars) | 2016 |  | 2015
Short-term debt |  |  |
Short-term borrowings | $ | 156.5 |  |  | $ | 280.7 |
Long-term debt |  |  |
5.75% Senior notes due 11/01/16 ($150 million par value) | $ | — |  |  | $ | 152.2 |
8.00% Senior notes due 10/01/19 ($134 million par value) | 139.1 |  |  | 138.5 |
4.625% Senior notes due 09/15/20 ($250 million par value) | 251.9 |  |  | 245.6 |
1.80% Senior notes due 11/7/22 (€500 million par value) | 520.7 |  |  | 536.8 |
3.375% Senior notes due 03/15/25 ($500 million par value) | 495.6 |  |  | 495.1 |
7.125% Senior notes due 02/15/29 ($121 million par value) | 118.8 |  |  | 118.7 |
4.375% Senior notes due 03/15/45 ($500 million par value) | 493.3 |  |  | 493.0 |
Term loan facilities and other | 43.6 |  |  | 89.7 |
Total long-term debt | $ | 2,063.0 |  |  | $ | 2,269.6 |
Less: current portion | 19.4 |  |  | 160.7 |
Long-term debt, net of current portion | $ | 2,043.6 |  |  | $ | 2,108.9 |
In July 2016, the Company terminated interest rate swaps which had the effect of converting $384 million of fixed rate notes to variable rates. The gain on the termination is being amortized into interest expense over the remaining terms of the notes. The value related to these swap terminations as of December 31, 2016 was $3.9 million and $1.3 million on the 4.625% and 8.00% notes, respectively, as an increase to the notes. The value of these interest rate swaps as of December 31, 2015 was $1.9 million and $0.8 million on the 4.625% and 8.00% notes, respectively, as a decrease to the notes. The Company terminated fixed to floating interest rate swaps in 2009. The gain on the termination is being amortized into interest expense over the remaining term of the note. The value related to this swap termination at December 31, 2016 was $4.1 million on the 8.00% note as an increase to the note. The value related to these swap terminations at December 31, 2015 was $2.4 million and $5.5 million on the 5.75% and 8.00% notes, respectively, as an increase to the notes. The weighted average interest rate on short-term borrowings outstanding as of December 31, 2016 and 2015 was 2.3% and 1.3%, respectively. The weighted average interest rate on all borrowings outstanding, including the effects of outstanding swaps, as of December 31, 2016 and 2015 was 3.8% and 3.6%, respectively. Annual principal payments required as of December 31, 2016 are as follows :
(millions of dollars) |
2017 | $ | 175.9 |
2018 | 17.1 |
2019 | 136.1 |
2020 | 252.1 |
2021 | 2.1 |
After 2021 | 1,647.4 |
Total payments | $ | 2,230.7 |
Less: unamortized discounts | 11.2 |
Total | $ | 2,219.5 |
The Company's long-term debt includes various covenants, none of which are expected to restrict future operations. The Company has a $1 billion multi-currency revolving credit facility which includes a feature that allows the Company's borrowings to be increased to $1.25 billion. The facility provides for borrowings through June 30, 2019. The Company has one key financial covenant as part of the credit agreement which is a debt to EBITDA ("Earnings Before Interest, Taxes, Depreciation and Amortization") ratio. The Company was in compliance with the financial covenant at December 31, 2016 and expects to remain compliant in future periods. At December 31, 2016 and December 31, 2015, the Company had no outstanding borrowings under this facility. The Company's commercial paper program allows the Company to issue short-term, unsecured commercial paper notes up to a maximum aggregate principal amount outstanding of $1 billion. Under this program, the Company may issue notes from time to time and will use the proceeds for general corporate purposes. At December 31, 2016 and 2015, the Company had outstanding borrowings of $50.8 million and $215.0 million, respectively, under this program, which is classified in the Consolidated Balance Sheets in Notes payable and other short-term debt. The total current combined borrowing capacity under the multi-currency revolving credit facility and commercial paper program cannot exceed $1 billion. As of December 31, 2016 and 2015, the estimated fair values of the Company's senior unsecured notes totaled $2,081.4 million and $2,197.6 million, respectively. The estimated fair values were $62.0 million and $17.7 million higher than their carrying value at December 31, 2016 and 2015, respectively. Fair market values of the senior unsecured notes are developed using observable values for similar debt instruments, which are considered Level 2 inputs as defined by ASC Topic 820. The carrying values of the Company's multi-currency revolving credit facility and commercial paper program approximates fair value. The fair value estimates do not necessarily reflect the values the Company could realize in the current markets. The Company had outstanding letters of credit of $32.3 million and $29.3 million at December 31, 2016 and 2015, respectively. The letters of credit typically act as guarantees of payment to certain third parties in accordance with specified terms and conditions.

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- Definition The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21475-112644 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02.19,20,22) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682 + Details
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