INDEBTEDNESS

3 Months Ended

Mar. 31, 2019

NOTE 17. INDEBTEDNESS

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 2012 Senior Notes, the 2017 Senior Notes due 2021 and the 2017 Senior Notes due 2023, 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 following table summarizes total indebtedness:

		March 31, 2019
		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	$	(1.5)	$	(0.5)	$	(0.6)	$	497.4
	4.50% 2012 Senior Notes, due 2022		500.0		4.8		(1.5)		(1.3)		502.0
	4.875% 2013 Senior Notes, due 2024		500.0		-		(1.5)		(1.9)		496.6
	5.25% 2014 Senior Notes (30-Year), due 2044		600.0		-		3.2		(5.4)		597.8
	1.75% 2015 Senior Notes, due 2027		561.4		-		-		(2.9)		558.5
	2.75% 2017 Senior Notes, due 2021		500.0		6.9		(0.9)		(2.2)		503.8
	2.625% 2017 Senior Notes, due 2023		500.0		2.8		(0.8)		(2.8)		499.2
	3.25% 2017 Senior Notes, due 2028		500.0		-		(4.6)		(3.6)		491.8
	3.25% 2018 Senior Notes, due 2021		300.0		-		(0.3)		(1.3)		298.4
	4.25% 2018 Senior Notes, due 2029		400.0		-		(2.9)		(3.2)		393.9
	4.875% 2018 Senior Notes, due 2048		400.0		-		(6.7)		(4.1)		389.2
	Commercial Paper		320.0		-		(1.2)		-		318.8
Total debt		$	5,581.4	$	13.0	$	(17.7)	$	(29.3)	$	5,547.4
Current portion											(318.8)
Total long-term debt										$	5,228.6
		December 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	$	(3.7)	$	(0.6)	$	(0.7)	$	495.0
	4.50% 2012 Senior Notes, due 2022		500.0		1.9		(1.6)		(1.4)		498.9
	4.875% 2013 Senior Notes, due 2024		500.0		-		(1.5)		(2.0)		496.5
	2.75% 2014 Senior Notes (5-Year), due 2019		450.0		-		(0.1)		-		449.9
	5.25% 2014 Senior Notes (30-Year), due 2044		600.0		-		3.2		(5.5)		597.7
	1.75% 2015 Senior Notes, due 2027		571.6		-		-		(3.1)		568.5
	2.75% 2017 Senior Notes, due 2021		500.0		4.0		(1.0)		(2.4)		500.6
	2.625% 2017 Senior Notes, due 2023		500.0		-		(0.9)		(2.8)		496.3
	3.25% 2017 Senior Notes, due 2028		500.0		-		(4.7)		(3.7)		491.6
	3.25% 2017 Senior Notes, due 2021		300.0		-		(0.4)		(1.5)		298.1
	4.25% 2018 Senior Notes, due 2029		400.0		-		(3.0)		(3.3)		393.7
	4.875% 2018 Senior Notes, due 2048		400.0		-		(6.7)		(4.1)		389.2
Total debt		$	5,721.6	$	2.2	$	(17.3)	$	(30.5)	$	5,676.0
Current portion											(449.9)
Total long-term debt										$	5,226.1
⁽¹⁾ The Company has entered into interest rate swaps on the 2010 Senior Notes, the 2012 Senior Notes, the 2017 Senior Notes due 2021 and the 2017 Senior Notes due 2023 which are more fully discussed in Note 10 above. These amounts represent the cumulative amount of fair value hedging adjustments included in the carrying amount of the hedged debt.

Commercial Paper

As of March 31, 2019, the Company has CP borrowings outstanding of $318.8 million with a weighted average maturity date at the time of issuance of 79 days. At March 31, 2019, the weighted average remaining maturity and interest rate on CP outstanding was 44 days and 3.03% respectively.

At March 31, 2019, 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, 2019, there were no such cross defaults.

Notes Payable

On January 3, 2019, the Company fully repaid $450 million of the 2014 Senior Notes (5-year).

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 (30-year) due 2044		2015 Senior Notes due 2027		2017 Senior Notes due 2021		2017 Senior Notes due 2023		2017 Senior Notes due 2028		2018 Senior Notes due 2021		2018 Senior Notes due 2029		2018 Senior Notes due 2048		Commercial Paper		Total
2019 (After March 31)	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	320.0	$	320.0
2020		500.0		-		-		-		-		-		-		-		-		-		-		-		500.0
2021		-		-		-		-		-		500.0		-		-		300.0		-		-		-		800.0
2022		-		500.0		-		-		-		-		-		-		-		-		-		-		500.0
2023		-		-		-		-		-		-		500.0		-		-		-		-		-		500.0
Thereafter		-		-		500.0		600.0		561.4		-		-		500.0		-		400.0		400.0		-		2,961.4
Total	$	500.0	$	500.0	$	500.0	$	600.0	$	561.4	$	500.0	$	500.0	$	500.0	$	300.0	$	400.0	$	400.0	$	320.0	$	5,581.4

Interest expense, net

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

	Three Months Ended March 31,
	2019		2018
Income	$	5.0	$	3.2
Expense on borrowings		(46.6)		(51.3)
UTPs and other tax related liabilities		(5.6)		1.8
Net periodic pension costs - interest component		(5.6)		(4.7)
Capitalized		0.3		0.3
Total	$	(52.5)	$	(50.7)

The following table shows the cash paid for interest:

	Three Months Ended March 31,
	2019		2018
Interest paid	$	72.8	$	80.5

The fair value and carrying value of the Company’s debt (excluding commercial paper) as of March 31, 2019 and December 31, 2018 are as follows:

	March 31, 2019				December 31, 2018
	Carrying Amount		Estimated Fair Value		Carrying Amount		Estimated Fair Value
5.50% 2010 Senior Notes, due 2020	$	497.4	$	519.2	$	495.0	$	517.7
4.50% 2012 Senior Notes, due 2022		502.0		526.0		498.9		513.7
4.875% 2013 Senior Notes, due 2024		496.6		537.3		496.5		522.4
2.75% 2014 Senior Notes (5-Year), due 2019		-		-		449.9		449.9
5.25% 2014 Senior Notes (30-Year), due 2044		597.8		676.5		597.7		638.1
1.75% 2015 Senior Notes, due 2027		558.5		592.3		568.5		585.3
2.75% 2017 Senior Notes, due 2021		503.8		499.6		500.6		489.7
2.625% 2017 Senior Notes, due 2023		499.2		492.3		496.3		476.9
3.25% 2017 Senior Notes, due 2028		491.8		489.1		491.6		472.8
3.25% 2018 Senior Notes, due 2021		298.4		302.6		298.1		298.6
4.25% 2018 Senior Notes, due 2029		393.9		420.0		393.7		407.6
4.875% 2018 Senior Notes, due 2048		389.2		435.4		389.2		409.8
Total	$	5,228.6	$	5,490.3	$	5,676.0	$	5,782.5

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.