XML 69 R12.htm IDEA: XBRL DOCUMENT v3.22.0.1
DEBT
12 Months Ended
Dec. 31, 2021
DEBT [Abstract]  
DEBT NOTE 6: DEBTDebt at December 31 is detailed as follows: Effective in millionsInterest Rates 2021 2020 Short-term Debt Bank line of credit expires 2025 1 $               0.0  $               0.0  Total short-term debt $               0.0  $               0.0  Long-term Debt Bank line of credit expires 2025 1 $               0.0  $               0.0  Delayed draw term loan expires 20241.22% 1,100.0  0.0  Floating-rate notes due 2021 0.0  500.0  8.85% notes due 2021 0.0  6.0  4.50% notes due 20254.65% 400.0  400.0  3.90% notes due 20274.00% 400.0  400.0  3.50% notes due 20303.94% 750.0  750.0  7.15% notes due 20378.05% 129.2  129.2  4.50% notes due 20474.59% 700.0  700.0  4.70% notes due 20485.42% 460.9  460.9  Other notes2.35% 9.5  11.7  Total long-term debt - face value $        3,949.6  $        3,357.8  Unamortized discounts and debt issuance costs (69.6) (70.2) Total long-term debt - book value $        3,880.0  $        3,287.6  Less current maturities 5.2  515.4  Total long-term debt - reported value $        3,874.8  $        2,772.2  Estimated fair value of long-term debt $        4,418.5  $        3,443.2  1Borrowings on the bank line of credit are classified as short-term if we intend to repay within twelve months and as long-term if we have the intent and ability to extend payment beyond twelve months. Discounts and debt issuance costs are amortized using the effective interest method over the terms of the respective notes resulting in $13.9 million and $7.2 million, respectively, of net interest expense for these items for 2021 and 2020.BRIDGE FACILITY, DELAYED DRAW TERM LOAN AND LINE OF CREDITIn June 2021, concurrent with the announcement of the pending acquisition of U.S. Concrete (see Note 19 for additional information), we obtained a $2,200.0 million bridge facility commitment from Truist Bank. Later, in June 2021, we entered into a $1,600.0 million delayed draw term loan with a subset of the banks that provide our line of credit and terminated the bridge facility commitment. The delayed draw term loan was drawn in August 2021 for $1,600.0 million upon the acquisition of U.S. Concrete and was paid down to $1,100.0 million in September 2021. Amounts repaid are no longer available for borrowing and outstanding borrowings are due August 2024. The delayed draw term loan contains covenants customary for an unsecured investment-grade facility and mirror those in our line of credit. As of December 31, 2021, we were in compliance with the delayed draw term loan covenants.Financing costs for the bridge facility commitment and the delayed draw term loan totaled $13.3 million, $9.4 million of which was recognized as interest expense in 2021. Borrowings on the delayed draw term loan bear interest, at our option, at either LIBOR plus a credit margin ranging from 0.875% to 1.375%, or Truist Bank’s base rate (generally, its prime rate) plus a credit margin ranging from 0.000% to 0.375%. The credit margins and commitment fee are determined by our credit ratings. As of December 31, 2021, the credit margin for LIBOR borrowings was 1.000% and the credit margin for base rate borrowings was 0.000%. In September 2020, we executed a new five-year unsecured line of credit of $1,000.0 million, incurring $4.6 million of transaction costs. The line of credit contains covenants customary for an unsecured investment-grade facility. As of December 31, 2021, we were in compliance with the line of credit covenants.Borrowings on the line of credit bear interest, at our option, at either LIBOR plus a credit margin ranging from 1.000% to 1.625%, or Truist Bank’s base rate (generally, its prime rate) plus a credit margin ranging from 0.000% to 0.625%. The credit margin for both LIBOR and base rate borrowings is determined by our credit ratings. Standby letters of credit, which are issued under the line of credit and reduce availability, are charged a fee equal to the credit margin for LIBOR borrowings plus 0.175%. We also pay a commitment fee on the daily average unused amount of the line of credit that ranges from 0.090% to 0.225% determined by our credit ratings. As of December 31, 2021, the credit margin for LIBOR borrowings was 1.125%, the credit margin for base rate borrowings was 0.125%, and the commitment fee for the unused amount was 0.100%.As of December 31, 2021, our available borrowing capacity under the line of credit was $940.4 million. Utilization of the borrowing capacity was as follows:none was borrowed$59.6 million was used to provide support for outstanding standby letters of creditTERM DEBTEssentially all of our $3,949.6 million (face value) of term debt (which includes the $1,100.0 million delayed draw term loan) is unsecured. $2,840.2 million of such debt is governed by two essentially identical indentures that contain customary investment-grade type covenants. As of December 31, 2021, we were in compliance with all term debt covenants.In August 2021, we assumed $434.5 million (fair value) of senior notes due 2029 in connection with the acquisition of U.S. Concrete and retired these notes in September 2021.In May 2020, we issued $750.0 million of 3.50% senior notes due 2030. Total proceeds were $741.4 million (net of discounts and transaction costs). $250.0 million of the proceeds were used to retire the $250.0 million floating rate notes due June 2020. The remainder of the proceeds, together with cash on hand, were used to retire the $500.0 million floating rate notes due March 2021.The total scheduled (principal and interest) debt payments, excluding the line of credit, for the five years subsequent to December 31, 2021 are as follows: in millionsTotal Principal Interest Scheduled Debt Payments (excluding the line of credit) 2022$          145.3  $            5.2  $        140.1  2023 151.5  2.3  149.2  2024 1,243.3  1,100.9  142.4  2025 513.8  400.5  113.3  2026 104.7  0.4  104.3  STANDBY LETTERS OF CREDITWe provide, in the normal course of business, certain third-party beneficiaries with standby letters of credit to support our obligations to pay or perform according to the requirements of an underlying agreement. Such letters of credit typically have an initial term of one year, typically renew automatically, and can only be modified or canceled with the approval of the beneficiary. Except for $24.8 million of risk management insurance letters of credit that expire in July 2022, our standby letters of credit are issued by banks that participate in our $1,000.0 million line of credit and reduce the borrowing capacity thereunder. Our standby letters of credit as of December 31, 2021 are summarized by purpose in the table below: in millions Standby Letters of Credit Risk management insurance$          76.0  Reclamation/restoration requirements 8.4  Total$          84.4