Financing

9 Months Ended

Sep. 30, 2021

Debt Disclosure [Abstract]

Financing

Financing

Our debt consisted of the following:

(in millions)	September 30, 2021		December 31, 2020
Commercial paper	$	—	$	27.2
364-Day Credit Agreement	—		348.5
Total short-term borrowings	$	—	$	375.7
4.45% notes due December 2023	$	299.3	$	299.1
6.55% notes due November 2036	198.5		198.4
4.20% notes due March 2048	346.3		346.2
Other deferred financing costs associated with credit facilities	(1.9)		(0.8)
Total long-term debt	$	842.2	$	842.9
Debt discounts and debt issuance costs totaled $5.8 million and $6.6 million as of each of September 30, 2021 and December 31, 2020, respectively, and have been netted against the aggregate principal amounts of the related debt in the components of the debt table above.

On July 28, 2021, we increased the size of the commercial paper program (“CP Program”) to permit the issuance of short-term, unsecured commercial paper notes in an aggregate principal amount not to exceed $650 million at any time outstanding. Prior to this increase, the CP Program permitted us to issue commercial paper notes in an aggregate principal amount not to exceed $550 million at any time outstanding. The other terms and conditions of the CP program remain the same. Amounts available under the CP Program may be borrowed, repaid and re-borrowed from time to time. The notes will have maturities of up to 397 days from date of issue. As of September 30, 2021 and December 31, 2020, there was $0.0 million and $27.2 million of outstanding borrowings under the commercial paper program, respectively. We issued commercial paper of $100 million in January 2020 and $150 million in December 2019 to fund the acquisitions of I&S and Cummins-Allison Corp. (“Cummins-Allison”), respectively. See discussion in Note 2, “Acquisitions” for further details.

On July 28, 2021, we also entered into a $650 million, 5-year Revolving Credit Agreement (the “2021 Facility”), which replaced the existing $550 million revolving credit facility. The 2021 Facility allows us to borrow, repay, or to the extent permitted by the agreement, prepay and re-borrow funds at any time prior to the stated maturity date. Interest on loans made under the 2021 Facility accrues, at our option, at a rate per annum equal to (1) a base rate, plus a margin ranging from 0.00% to 0.50% depending upon the ratings by S&P and Moody’s of our senior unsecured long-term debt (the "Index Debt Rating"), or (2) an adjusted LIBO rate or the applicable replacement rate (determined based on “hardwired” LIBOR transition provisions consistent with those published by the Alternative References Rates Committee) for an interest period to be selected by us, plus a margin ranging from 0.805% to 1.50% depending upon the Index Debt Rating. The 2021 Facility contains customary affirmative and negative covenants for credit facilities of this type, including limitations on us and our subsidiaries with respect to indebtedness, liens, mergers, consolidations, liquidations and dissolutions, sales of all or substantially all assets, transactions with affiliates and hedging arrangements. We must also maintain a debt to capitalization ratio not to exceed 0.65 to 1.00 at all times. The 2021 Facility also provides for customary events of default, including failure to pay principal, interest or fees when due, failure to comply with covenants, any representation or warranty made by us or any of our material subsidiaries being false in any material respect, default under certain other material indebtedness, certain insolvency or receivership events affecting us and our material subsidiaries, certain ERISA events, material judgments and a change in control of us. The undrawn portion of this revolving credit agreement is also available to serve as a backstop facility for the issuance of commercial paper. In 2020, we repaid the outstanding amounts related to borrowings of $67 million used to fund the I&S acquisition. See discussion in Note 2, “Acquisitions” for further details. As of September 30, 2021 and December 31, 2020, there were no outstanding borrowings. In April 2020, to enhance financial flexibility and maintain maximum liquidity in response to the uncertainty in the global markets resulting from the COVID-19 pandemic, we entered into a senior unsecured 364-day credit facility (the “364-Day Credit Agreement”). On April 15, 2021, we repaid the amount outstanding under the 364-Day Credit Agreement with cash on hand and the issuance of commercial paper. As of December 31, 2020, there was $348.5 million outstanding under the 364-Day Credit Agreement.