Long Term Debt and Financing Arrangements (Notes)

9 Months Ended

Sep. 30, 2017

Debt Disclosure [Abstract]

Debt Disclosure

Long Term Debt and Financing Arrangements

Long-term debt consists of the following (in millions):

	Maturity	September 30, 2017		December 31, 2016
Senior notes at 5.95%	2018	$	—	$	299.3
Senior notes at 3.625%	2022	297.8		297.5
Senior notes at 3.35%	2026	394.2		393.7
Senior notes at 3.15%	2027	294.7		—
TOTAL LONG-TERM DEBT (a)		$	986.7	$	990.5

^(a) Long-term debt is presented net of debt issuance costs and unamortized discounts.

In August 2017, the Company completed a public debt offering of $300 million aggregate principal amount of its long-term unsecured, unsubordinated notes maturing in August 2027 and bearing interest at a fixed rate of 3.15% (the "2027 Notes"). Net proceeds from the issuance were $294.6 million after deducting the discount on the notes and offering expenses paid by the Company. The 2027 Notes are fixed rate indebtedness, are callable at any time with a make whole premium and are only subject to accelerated payment prior to maturity in the event of a default (including as a result of the Company's failure to meet certain non-financial covenants) under the indenture governing the 2027 Notes, as modified by the supplemental indenture creating such notes, or upon a change in control event as defined in such indenture. The Company was in compliance with all non-financial covenants under the indenture as of September 30, 2017.

In September 2017, the Company applied the net proceeds from the 2027 Notes to redeem all of its $300 million outstanding long-term, unsecured, unsubordinated notes maturing in 2018 and bearing interest at a fixed rate of 5.95% (the "2018 Notes"). In connection with this redemption, the Company recognized a loss on the early extinguishment of the 2018 Notes of $6.3 million on an after-tax basis.

At December 31, 2016, the Company had $3.2 million of short-term debt outstanding. The Company had $93.8 million short-term debt outstanding at September 30, 2017, which consisted primarily of commercial paper.