Borrowings

12 Months Ended

Dec. 31, 2020

Debt Disclosure [Abstract]

Borrowings and Lines of Credit [Text Block]

13. Borrowings and Lines of Credit

Borrowings consist of the following:

	December 31, 2020		December 31, 2019
Short-term:
Commercial paper	$	—	$	84,700
Notes payable	$	—	$	84,700

			Carrying amount (1)
	Principal		December 31, 2020		December 31, 2019
Long-term:
3.15% 10-year notes due November 15, 2025	$	400,000	$	396,716	$	396,042
1.25% 10-year notes due November 9, 2026 (euro-denominated)	€	600,000	724,310		658,089
0.750% 8-year notes due November 4, 2027 (euro denominated)	€	500,000	603,107		548,008
6.65% 30-year debentures due June 1, 2028	$	200,000	199,255		199,155
2.950% 10-year notes due November 4, 2029	$	300,000	296,650		296,270
5.375% 30-year debentures due October 15, 2035	$	300,000	296,309		296,060
6.60% 30-year notes due March 15, 2038	$	250,000	248,053		247,939
5.375% 30-year notes due March 1, 2041	$	350,000	344,429		344,153
Total long-term debt			$	3,108,829	$	2,985,716

(1) Carrying amount is net of unamortized debt discount and deferred debt issuance costs. Total unamortized debt discounts were $17.6 million and $18.9 million as of December 31, 2020 and 2019, respectively. Total deferred debt issuance costs were $14.4 million and $16.2 million as of December 31, 2020 and 2019, respectively.

The discounts are being amortized to interest expense using the effective interest method over the life of the issuances. The deferred issuance costs are amortized on a straight-line basis over the life of the debt.

On November 4, 2019, the Company issued €500,000 of 0.750% euro-denominated notes due 2027 and $300,000 of 2.950% notes due 2029. On December 4, 2019, proceeds from the sale of the aforementioned notes were used to redeem the €300,000 2.125% notes due 2020 and $450,000 4.30% notes due 2021. Such redemptions required the Company to pay a make whole premium to the bondholders, resulting in a loss of $23,543. The remainder of the proceeds were used for general corporate purposes.

As of December 31, 2020, the Company maintained a $1 billion five-year unsecured revolving credit facility (the “Credit Agreement”) with a syndicate of banks, which expires on October 4, 2024.  At the Company's election, loans under the Credit Agreement will bear interest at a base rate plus an applicable margin. The Credit Agreement requires the Company to pay a facility fee and imposes various restrictions on the Company such as, among other things, a requirement to maintain a minimum interest coverage ratio of EBITDA to consolidated net interest expense of not less than 3.0 to 1. The Company primarily uses this facility as liquidity back-up for its commercial paper program. On March 16, 2020, the Company borrowed $500 million under the Credit Agreement, which was subsequently repaid in full during the second quarter with proceeds from resumed commercial paper borrowings. Proceeds from the Credit Agreement borrowing were used to repay all of the Company's outstanding commercial paper and for general corporate purposes.

On May 6, 2020, the Company entered into a $450.0 million 364-day revolving credit facility (the "Short-term Credit Agreement") with a syndicate of banks to be used primarily for working capital and general corporate purposes. Effective November 12, 2020, the Company terminated the aggregate commitments under the Short-term Credit Agreement. The Company did not undertake any borrowings under this facility prior to termination.

The Company was in compliance with all covenants in the Credit Agreement and other long-term debt covenants at December 31, 2020 and had an interest coverage ratio of consolidated EBITDA to consolidated net interest expense of 11.4 to 1.

As of December 31, 2020, the future maturities of long-term debt were as follows:

	Future Maturities
2021	$	—
2022	—
2023	—
2024	—
2025	396,716
2026 and thereafter	2,712,113
Total	$	3,108,829

Letters of Credit and other Guarantees

As of December 31, 2020, the Company had approximately $152.5 million outstanding in letters of credit, surety bonds, and performance and other guarantees with financial institutions, which expire on various dates through 2029. These letters of credit and bonds are primarily issued as security for insurance, warranty and other performance obligations. In general, the Company would only be liable for the amount of these guarantees in the event of default in the performance of its obligations, the probability of which is believed to be remote.