FINANCING ARRANGEMENTS

Our outstanding debt was as follows at November 30:



(millions)	2016			2015
Short-term borrowings
Commercial paper	$	356.9		$	107.5
Other	33.4			32.0
	$	390.3		$	139.5
Weighted-average interest rate of short-term borrowings at year-end	1.4		%	2.2		%

Long-term debt
5.20% notes due 12/15/2015	$	—		$	200.0
5.75% notes due 12/15/2017⁽¹⁾	250.0			250.0
3.90% notes due 7/8/2021⁽²⁾	250.0			250.0
3.50% notes due 8/19/2023⁽³⁾	250.0			250.0
3.25% notes due 11/15/2025⁽⁴⁾	250.0			250.0
7.63%–8.12% notes due 2024	55.0			55.0
Other	11.1			7.4
Unamortized discounts, premiums, debt issuance costs and fair value adjustments	(9.2		)	(7.5		)
	1,056.9			1,254.9
Less current portion	2.9			203.5
	$	1,054.0		$	1,051.4


(1)	Interest rate swaps, settled upon the issuance of these notes in 2007, effectively set the interest rate on the $250 million notes at a weighted-average fixed rate of 6.25%.


(2)	Interest rate swaps, settled upon the issuance of these notes in 2011, effectively set the interest rate on the $250 million notes at a weighted-average fixed rate of 4.01%.


(3)	Interest rate swaps, settled upon the issuance of these notes in 2013, effectively set the interest rate on the $250 million notes at a weighted-average fixed rate of 3.30%.

(4)

Interest rate swaps, settled upon the issuance of these notes in 2015, effectively set the interest rate on the $250 million notes at a weighted-average fixed rate of 3.45%. The fixed interest rate on $100 million of the 3.25% notes due in 2025 is effectively converted to a variable rate by interest rate swaps through 2025. Net interest payments are based on 3 month LIBOR plus 1.22% during this period (our effective rate as of November 30, 2016 was 2.13%).

Maturities of long-term debt during the fiscal years subsequent to November 30, 2016 are as follows (in millions):



2018	$	250.6
2019	0.4
2020	0.2
2021	250.2
Thereafter	561.8

In November 2015, we issued $250 million of 3.25% notes due 2025, with net cash proceeds received of $246.5 million. Interest is payable semiannually in arrears in May and November of each year. Of these notes, $100 million were subject to interest rate hedges and $100 million of fair value hedges as further disclosed in note 7. The net proceeds from this issuance were used to pay down short-term borrowings and for general corporate purposes. In December of 2015, proceeds from short-term borrowings were used to pay off $200 million of 5.20% notes that matured in that month.

We have available credit facilities with domestic and foreign banks for various purposes. Some of these lines are committed lines and others are uncommitted lines and could be withdrawn at various times. In June 2015, we entered into a five-year $750 million revolving credit facility which will expire in June 2020. The pricing for this credit facility, on a fully drawn basis, is LIBOR plus 0.75%. This credit facility supports our commercial paper program and, after $356.9 million was used to support issued commercial paper, we have $393.1 million of capacity at November 30, 2016. In addition, we have several uncommitted lines totaling $182.8 million, which have a total unused capacity at November 30, 2016 of $151.1 million. These lines by their nature can be withdrawn based on the lenders’ discretion. Committed credit facilities require a fee, and annual commitment fees were $0.5 million for 2016 and 2015.

Rental expense under operating leases (primarily buildings and equipment) was $41.6 million in 2016, $39.0 million in 2015 and $40.3 million in 2014. Future annual fixed rental payments⁽¹⁾ for the years ending November 30 are as follows (in millions):



2017	$	27.8
2018	21.3
2019	14.8
2020	11.6
2021	9.4
Thereafter	23.8

⁽¹⁾In July 2016, we entered into a 15-year lease for a headquarters building in Hunt Valley, Maryland. The lease, which is expected to commence upon completion of building construction and fit-out, currently scheduled for the second half of 2018, requires monthly lease payments of approximately $0.9 million beginning six months after lease commencement. The $0.9 million monthly lease payment is subject to adjustment after an initial 60-month period and thereafter on an annual basis as specified in the lease agreement. In addition, the initial $0.9 million monthly lease payment is subject to increase in the event of agreed-upon changes to specifications related to the headquarters building. We expect to consolidate our Corporate staff and certain non-manufacturing U.S. employees, currently housed in four locations in the suburban Baltimore, Maryland area, to the new headquarters building. Due to uncertainty as to the exact date when the lease will commence, these lease payments are not reflected in the preceding table of annual fixed rental payments for the years ending November 30, 2017 through 2021 and thereafter.

At November 30, 2016, we had guarantees outstanding of $0.6 million with terms of one year or less. At November 30, 2016 and 2015, we had outstanding letters of credit of $7.2 million and $8.6 million, respectively. These letters of credit typically act as a guarantee of payment to certain third parties in accordance with specified terms and conditions. The unused portion of our letter of credit facility was $13.8 million at November 30, 2016.