INDEBTEDNESS

3 Months Ended

Mar. 31, 2018

NOTE 15. INDEBTEDNESS

The following table summarizes total indebtedness:

		March 31, 2018
		Principal Amount		Fair Value of Interest Rate Swaps⁽¹⁾		Unamortized (Discount) Premium		Unamortized Debt Issuance Costs		Carrying Value
Notes Payable:
	5.50% 2010 Senior Notes, due 2020	$	500.0	$	(5.6)	$	(0.9)	$	(1.0)	$	492.5
	4.50% 2012 Senior Notes, due 2022		500.0		(2.3)		(1.9)		(1.7)		494.1
	4.875% 2013 Senior Notes, due 2024		500.0		-		(1.8)		(2.3)		495.9
	2.75% 2014 Senior Notes (5-Year), due 2019		450.0		(4.3)		(0.2)		(0.9)		444.6
	5.25% 2014 Senior Notes (30-Year), due 2044		600.0		-		3.3		(5.6)		597.7
	1.75% 2015 Senior Notes, due 2027		614.9		-		-		(3.5)		611.4
	2.75% 2017 Senior Notes, due 2021		500.0		-		(1.2)		(3.0)		495.8
	2017 Floating Rate Senior Notes, due 2018		300.0		-		-		(0.3)		299.7
	2.625% 2017 Notes, due 2023		500.0		-		(1.0)		(3.4)		495.6
	3.25% 2017 Notes, due 2028		500.0		-		(5.1)		(3.9)		491.0
	2017 Term Loan Facility, due 2020		500.0		-		-		(0.6)		499.4
	Commercial Paper		90.0		-		(0.1)		-		89.9
Total debt		$	5,554.9	$	(12.2)	$	(8.9)	$	(26.2)	$	5,507.6
Current portion											(389.6)
Total long-term debt										$	5,118.0
		December 31, 2017
		Principal Amount		Fair Value of Interest Rate Swaps⁽¹⁾		Unamortized (Discount) Premium		Unamortized Debt Issuance Costs		Carrying Value
Notes Payable:
	5.50% 2010 Senior Notes, due 2020	$	500.0	$	-	$	(1.0)	$	(1.2)	$	497.8
	4.50% 2012 Senior Notes, due 2022		500.0		(0.8)		(2.0)		(1.7)		495.5
	4.875% 2013 Senior Notes, due 2024		500.0		-		(1.8)		(2.4)		495.8
	2.75% 2014 Senior Notes (5-Year), due 2019		450.0		(2.2)		(0.2)		(1.1)		446.5
	5.25% 2014 Senior Notes (30-Year), due 2044		600.0		-		3.3		(5.7)		597.6
	1.75% 2015 Senior Notes, due 2027		600.4		-		-		(3.6)		596.8
	2.75% 2017 Senior Notes, due 2021		500.0		-		(1.3)		(3.2)		495.5
	2017 Floating Rate Senior Notes, due 2018		300.0		-		-		(0.5)		299.5
	2.625% 2017 Notes, due 2023		500.0		-		(1.1)		(3.5)		495.4
	3.25% 2017 Notes, due 2028		500.0		-		(5.2)		(3.9)		490.9
	2017 Term Loan Facility, due 2020		500.0		-		-		(0.7)		499.3
	Commercial Paper		130.0		-		(0.1)		-		129.9
Total debt		$	5,580.4	$	(3.0)	$	(9.4)	$	(27.5)	$	5,540.5
Current portion											(429.4)
Total long-term debt										$	5,111.1
⁽¹⁾ The Company has entered into interest rate swaps on the 2010 Senior Notes, the 2012 Senior Notes and the 2014 Senior Notes (5-Year) which are more fully discussed in Note 9 above.

Commercial Paper

As of March 31, 2018, the Company has CP borrowings outstanding of $90 million with a weighted average maturity date at the time of issuance of 31 days. At March 31, 2018, the weighted average remaining maturity and interest rate on CP outstanding was 7 days and 2.11% respectively.

At March 31, 2018, the Company was in compliance with all covenants contained within all of the debt agreements. All the debt agreements contain cross default provisions which state that default under one of the aforementioned debt instruments could in turn permit lenders under other debt instruments to declare borrowings outstanding under those instruments to be immediately due and payable. As of March 31, 2018, there were no such cross defaults.

The repayment schedule for the Company’s borrowings is as follows:

Year Ending December 31,	2010 Senior Notes due 2020		2012 Senior Notes due 2022		2013 Senior Notes due 2024		2014 Senior Notes (5-year) due 2019		2014 Senior Notes (30-year) due 2044		2015 Senior Notes due 2027		Term Loan Facility due 2020		2017 Floating Rate Senior Notes due 2018		2017 Senior Notes due 2021		2017 Notes due 2023		2017 Notes due 2028		Commercial Paper		Total
2018 (after March 31,)	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	300.0	$	-	$	-	$	-	$	90.0	$	390.0
2019		-		-		-		450.0		-		-		-		-		-		-		-		-		450.0
2020		500.0		-		-		-		-		-		500.0		-		-		-		-		-		1,000.0
2021		-		-		-		-		-		-		-		-		500.0		-		-		-		500.0
2022		-		500.0		-		-		-		-		-		-		-		-		-		-		500.0
Thereafter		-		-		500.0		-		600.0		614.9		-		-		-		500.0		500.0		-		2,714.9
Total	$	500.0	$	500.0	$	500.0	$	450.0	$	600.0	$	614.9	$	500.0	$	300.0	$	500.0	$	500.0	$	500.0	$	90.0	$	5,554.9

Interest expense, net

The following table summarizes the components of interest as presented in the consolidated statements of operations:

	Three Months Ended
	March 31,
	2018		2017
Income	$	3.2	$	4.1
Expense on borrowings		(51.3)		(44.7)
Expense on UTPs and other tax related liabilities		1.8		(2.1)
Net periodic pension costs - interest component ⁽¹⁾		(4.7)		(5.0)
Capitalized		0.3		0.3
Total Interest (expense) income, net	$	(50.7)	$	(47.4)
⁽¹⁾The Company adopted ASU No. 2017-07 in the first quarter of 2018, whereby all components of pension expense except for the service cost component are required to be presented in other non-operating income. The service cost component continues to be reported as an operating expense.

The following table shows the cash paid for interest:

	Three Months Ended
	March 31,
	2018		2017
Interest paid	$	80.5	$	74.7

The Company’s debt is recorded at its carrying amount, which represents the issuance amount plus or minus any issuance premium or discount, except for the 2010 Senior Notes, the 2014 Senior Notes (5-Year) and the 2012 Senior Notes which are recorded at the carrying amount adjusted for the fair value of an interest rate swap used to hedge the fair value of the note.

The fair value and carrying value of the Company’s debt (excluding Commercial Paper) as of March 31, 2018 and December 31, 2017 are as follows:

	March 31, 2018				December 31, 2017
	Carrying Amount		Estimated Fair Value		Carrying Amount		Estimated Fair Value
2010 Senior Notes	$	492.5	$	527.8	$	497.8	$	537.9
2012 Senior Notes		494.1		521.9		495.5		535.6
2013 Senior Notes		495.9		531.1		495.8		547.8
2014 Senior Notes (5-Year)		444.6		448.9		446.5		452.8
2014 Senior Notes (30-Year)		597.7		692.2		597.6		722.4
2015 Senior Notes		611.4		630.5		596.8		617.7
2017 Senior Notes (5-Year)		495.8		490.4		495.5		500.0
2017 Floating Rate Senior Notes		299.7		300.2		299.5		300.2
2.65% 2017 Notes, due 2023		495.6		481.9		495.4		494.8
3.25% 2017 Notes, due 2028		491.0		475.3		490.9		493.6
2017 Term Loan Facility, due 2020		499.4		499.4		499.3		499.3
Total	$	5,417.7	$	5,599.6	$	5,410.6	$	5,702.1

The fair value of the Company’s long-term debt is estimated based on quoted market prices for similar instruments. Accordingly, the inputs used to estimate the fair value of the Company’s long-term debt are classified as Level 2 inputs within the fair value hierarchy.