Borrowings

The Company’s outstanding borrowings consisted of the following (in millions):



	June 30, 2016			December 31, 2015
Notes:
5.930% notes due 2016 (a)	$	1,000.0		$	1,000.0
2.875% notes due 2017 (a)	500.0			500.0
3.650% notes (effective rate of 4.2%) due 2018	400.0			400.0
3.350% notes due 2019 (a)	250.0			250.0
5.253% notes due 2020 (a)	324.9			324.9
6.200% notes due 2036 (a)	500.0			500.0
6.200% notes due 2040 (a)	250.0			250.0
Other borrowings	5.4			5.5
Total borrowings at par value	3,230.3			3,230.4
Fair value hedge accounting adjustments, net (b)	17.7			7.6
Unamortized discount and debt issuance costs (c)	(19.5		)	(22.1		)
Total borrowings at carrying value (d)	$	3,228.5		$	3,215.9

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(a)	The difference between the stated interest rate and the effective interest rate is not significant.

(b)

The Company utilizes interest rate swaps designated as fair value hedges to effectively change the interest rate payments on a portion of its notes from fixed-rate payments to short-term LIBOR-based variable rate payments in order to manage its overall exposure to interest rates. The changes in fair value of these interest rate swaps result in an offsetting hedge accounting adjustment recorded to the carrying value of the related note. These hedge accounting adjustments will be reclassified as reductions to or increases in "Interest expense" in the Condensed Consolidated Statements of Income over the life of the related notes, and cause the effective rate of interest to differ from the notes’ stated rate.


(c)	On January 1, 2016, the Company adopted an accounting pronouncement that requires capitalized debt issuance costs to be presented as a reduction to the carrying value of debt, with adoption retrospective for periods previously presented. The adoption of this standard resulted in a reduction of $9.7 million to the carrying value of borrowings as of December 31, 2015.


(d)	As of June 30, 2016, the Company’s weighted-average effective rate on total borrowings was approximately 4.9%.

The following summarizes the Company's maturities of borrowings at par value as of June 30, 2016 (in millions):



Due within 1 year	$	1,005.4
Due after 1 year through 2 years	500.0
Due after 2 years through 3 years	650.0
Due after 3 years through 4 years	324.9
Due after 5 years	750.0

The Company’s obligations with respect to its outstanding Notes, as described above, rank equally.

Term Loan Facility

On April 11, 2016, the Company entered into a term loan agreement, which matures in April 2021, providing for an unsecured delayed draw term loan facility in an aggregate amount of $575.0 million (the "Term Loan Facility"). The Company may draw term loans under the Term Loan Facility from time to time until October 11, 2016 (the "Commitment Termination Date"). In addition, the Company has the option to increase the commitments under the Term Loan Facility, either before or after the Commitment Termination Date, in an aggregate amount up to $250.0 million. Any such increases would be subject to obtaining additional commitments from existing or new lenders under the Term Loan Facility. The Company plans to use the proceeds of the term loans to refinance a portion of the Company’s issued and outstanding 5.930% notes due October 2016 and for general corporate purposes; provided, that no more than $450.0 million in proceeds from the loans under the Term Loan Facility may be used for purposes other than redeeming, repaying, purchasing or refinancing the Company’s notes due October 2016 and paying any fees and expenses in connection with the Term Loan Facility and other related loan documents.

The Term Loan Facility contains covenants, subject to certain exceptions, that, among other things, limit or restrict the Company's ability to sell or transfer assets or merge or consolidate with another company, grant certain types of security interests, incur certain types of liens, impose restrictions on subsidiary dividends, enter into sale and leaseback transactions, incur certain subsidiary level indebtedness, or use proceeds in violation of anti-corruption or anti-money laundering laws. The Term Loan Facility requires the Company to maintain a consolidated adjusted EBITDA interest coverage ratio of greater than 3:1 for each period of four consecutive fiscal quarters. The Term Loan Facility also contains customary representations, warranties and events of default.

Generally, interest under the Term Loan Facility is calculated using a selected LIBOR rate plus an interest rate margin of 150 basis points. A commitment fee of 15 basis points on the unused amount of the commitments under the facility is also payable quarterly until the Commitment Termination Date. Both the interest rate margin and commitment fee percentage are based on certain of the Company's credit ratings, and will increase or decrease in the event of certain upgrades or downgrades in the Company’s credit ratings.

In addition to the payment of interest, the Company is required to make certain periodic amortization payments with respect to the outstanding principal of the term loans commencing after the second anniversary of the closing of the Term Loan Facility. The final maturity date of the Term Loan Facility is April 11, 2021.

As of June 30, 2016, the Company had no outstanding borrowings under the Term Loan Facility.