Borrowings

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



	September 30, 2018			December 31, 2017
Commercial paper (a)	$	369.0		$	—
Notes:
3.650% notes due 2018 (b)	—			400.0
3.350% notes due 2019 (c)	250.0			250.0
Floating rate notes (effective rate of 3.4%) due 2019	250.0			250.0
5.253% notes due 2020 (c)	324.9			324.9
3.600% notes due 2022 (c)	500.0			500.0
4.250% notes (effective rate of 4.5%) due 2023 (d)	300.0			—
6.200% notes due 2036 (c)	500.0			500.0
6.200% notes due 2040 (c)	250.0			250.0
Term loan facility borrowings (effective rate of 3.6%)	567.8			575.0
Total borrowings at par value	3,311.7			3,049.9
Fair value hedge accounting adjustments, net (e)	(0.8		)	0.5
Debt issuance costs and unamortized discount, net	(15.9		)	(16.8		)
Total borrowings at carrying value (f)	$	3,295.0		$	3,033.6

____________________

(a)

Pursuant to the Company's commercial paper program, the Company may issue unsecured commercial paper notes in an amount not to exceed $1.5 billion outstanding at any time, reduced to the extent of borrowings outstanding on the Company's Revolving Credit Facility in excess of $150 million. The commercial paper notes may have maturities of up to 397 days from date of issuance. The Company's commercial paper borrowings as of September 30, 2018 had a weighted-average annual interest rate of approximately 2.4% and a weighted-average term of approximately 2 days.


(b)	Proceeds from the 4.250% unsecured notes due in 2023 ("2023 Notes"), commercial paper and cash, including cash generated from operations, were used to repay the August 2018 maturity of $400.0 million of aggregate principal amount unsecured notes.


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


(d)	On June 11, 2018, the Company issued $300.0 million of aggregate principal amount of 4.250% unsecured notes due in 2023.

(e)

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.


(f)	As of September 30, 2018, the Company's weighted-average effective rate on total borrowings was approximately 4.4%.

The following summarizes the Company's maturities of notes at par value as of September 30, 2018 (in millions):



Due within 1 year	$	528.8
Due after 1 year through 2 years	360.8
Due after 2 years through 3 years	503.1
Due after 3 years through 4 years	500.0
Due after 4 years through 5 years	300.0
Due after 5 years	750.0

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

Notes

On June 11, 2018, the Company issued $300.0 million of aggregate principal amount of unsecured notes due June 9, 2023. Interest with respect to the 2023 Notes is payable semi-annually in arrears on June 9 and December 9 of each year, beginning on December 9, 2018, based on the per annum rate of 4.250%. The interest rate payable on the 2023 Notes will be increased if the debt rating assigned to the note is downgraded by an applicable credit rating agency, beginning at a downgrade below investment grade. However, in no event will the interest rate on the 2023 Notes exceed 6.250% per annum. The interest rate payable on the 2023 Notes may also be adjusted downward for debt rating upgrades subsequent to any debt rating downgrades but may not be adjusted below 4.250% per annum. The 2023 Notes are subject to covenants that, among other things, limit or restrict the ability of the Company to sell or transfer assets or merge or consolidate with another company, and limit or restrict the Company's and certain of its subsidiaries' ability to incur certain types of security interests, or enter into sale and leaseback transactions. If a change of control triggering event occurs, holders of the 2023 Notes may require the Company to repurchase some or all of their notes at a price equal to 101% of the principal amount of their notes, plus any accrued and unpaid interest. The Company may redeem the 2023 Notes, in whole or in part, at any time prior to May 9, 2023 at the greater of par or a price based on the applicable treasury rate plus 25 basis points. The Company may redeem the 2023 Notes at any time after May 9, 2023 at a price equal to par, plus accrued interest.