5. DEBT AND INTEREST

Short-term Debt

The following table provides the components of the Company’s short-term debt obligations as of September 30, 2017 and December 31, 2016.





	September 30		December 31
(millions)	2017		2016
Short-term debt
Commercial paper		$238.0		$-
Notes payable		24.2		29.9
Long-term debt, current maturities		810.8		511.4
Total		$1,073.0		$541.3

Line of Credit

As of September 30, 2017, the Company had in place a $2.0 billion multi-year credit facility which expires in December 2019. The credit facility has been established with a diverse syndicate of banks and supports the Company’s U.S. and Euro commercial paper programs. There were no borrowings under the Company’s credit facility as of either September 30, 2017 or December 31, 2016.

Commercial Paper

The Company’s commercial paper program is used as a potential source of liquidity and consists of a $2.0 billion U.S. commercial paper program and a $2.0 billion Euro commercial paper program. The maximum aggregate amount of commercial paper that may be issued by the Company under its commercial paper programs may not exceed $2.0 billion.

As of September 30, 2017, the Company had $238.0 million (€200 million) of commercial paper outstanding under its Euro program and no commercial paper outstanding under its U.S. program. As of December 31, 2016, the Company had no commercial paper outstanding under either program.

Long-term Debt

The following table provides the components of the Company’s long-term debt obligations, including current maturities, as of September 30, 2017 and December 31, 2016.




	Maturity	September 30		December 31
(millions)	by Year	2017		2016
Long-term debt
Public notes (2017 principal amount)
Five year 2012 senior notes ($500 million)	2017		$499.6		$498.9
Three year 2015 senior notes ($300 million)	2018		299.5		298.9
Three year 2016 senior notes ($400 million)	2019		396.6		395.9
Five year 2015 senior notes ($300 million)	2020		298.9		298.6
Ten year 2011 senior notes ($1.25 billion)	2021		1,245.6		1,244.8
Five year 2017 senior notes ($500 million)	2022		496.0		-
Seven year 2016 senior notes ($400 million)	2023		397.4		397.0
Seven year 2016 senior notes (€575 million)	2024		676.5		608.4
Ten year 2015 senior notes (€575 million)	2025		679.5		604.3
Ten year 2016 senior notes ($750 million)	2026		742.7		742.1
Thirty year 2011 senior notes ($750 million)	2041		739.1		738.7
Thirty year 2016 senior notes ($250 million)	2046		245.9		245.9
Private notes (2017 principal amount)
Series A private placement senior notes ($250 million)	2018		248.8		248.9
Series B private placement senior notes ($250 million)	2023		249.3		249.2
Capital lease obligations			4.9		5.2
Other			75.0		80.3
Total debt			7,295.3		6,657.1
Long-term debt, current maturities			(810.8)		(511.4)
Total long-term debt			$6,484.5		$6,145.7

Public Notes

In August 2017, the Company issued a $500 million aggregate principal five year fixed rate note with a coupon rate of 2.375%. The proceeds were used to repay a portion of the Company’s outstanding commercial paper and for general corporate purposes.

The Company’s public notes may be redeemed by the Company at its option at redemption prices that include accrued and unpaid interest and a make-whole premium. Upon the occurrence of a change of control accompanied by a downgrade of the public notes below investment grade rating, within a specified time period, the Company would be required to offer to repurchase the public notes at a price equal to 101% of the aggregate principal amount thereof, plus any accrued and unpaid interest to the date of repurchase. The public notes are senior unsecured and unsubordinated obligations of the Company and rank equally with all other senior and unsubordinated indebtedness of the Company.

Private Notes

The Company’s private notes may be redeemed by the Company at its option at redemption prices that include accrued and unpaid interest and a make-whole premium. Upon the occurrence of specified changes of control involving the Company, the Company would be required to offer to repurchase the private notes at a price equal to 100% of the aggregate principal amount thereof, plus any accrued and unpaid interest to the date of repurchase. Additionally, the Company would be required to make a similar offer to repurchase the private notes upon the occurrence of specified merger events or asset sales involving the Company, when accompanied by a downgrade of the private notes below investment grade rating, within a specified time period. The private notes are unsecured senior obligations of the Company and rank equal in right of payment with all other senior indebtedness of the Company. The private notes shall be unconditionally guaranteed by subsidiaries of the Company in certain circumstances, as described in the note purchase agreement as amended.

Covenants

The Company is in compliance with its debt covenants as of September 30, 2017.

Net Interest Expense

Interest expense and interest income recognized during the third quarter and the first nine months of 2017 and 2016 were as follows:


	Third Quarter Ended				Nine Months Ended
	September 30				September 30
(millions)	2017		2016		2017		2016
Interest expense		$60.7		$69.0		$191.0		$209.4
Interest income		(5.6)		(4.1)		(13.8)		(13.1)
Interest expense, net		$55.1		$64.9		$177.2		$196.3