Financing Arrangements

12 Months Ended

Nov. 30, 2023

Financing Arrangements [Abstract]

Financing Arrangements

FINANCING ARRANGEMENTS

Our outstanding debt, including finance leases, was as follows at November 30:

(millions)	2023			2022
Short-term borrowings
Commercial paper	$	269.4		$	1,224.6
Other	2.8			12.1
	$	272.2		$	1,236.7
Weighted-average interest rate of short-term borrowings at year-end	5.5		%	4.2		%
Long-term debt
3.50% notes due 9/1/2023	—			250.0
3.15% notes due 8/15/2024	700.0			700.0
3.25% notes due 11/15/2025(1)	250.0			250.0
0.90% notes due 2/15/2026	500.0			500.0
3.40% notes due 8/15/2027(2)	750.0			750.0
2.50% notes due 4/15/2030(3)	500.0			500.0
1.85% notes due 2/15/2031	500.0			500.0
4.95% notes due 4/15/2033(4)	500.0			—
4.20% notes due 8/15/2047	300.0			300.0
7.63%–8.12% notes due 2024	55.0			55.0
Other, including finance leases	159.1			176.1
Unamortized discounts, premiums, debt issuance costs and fair value adjustments(5)	(74.9)			(68.2)
	4,139.2			3,912.9
Less current portion	799.3			270.6
	$	3,339.9		$	3,642.3

(1)Interest rate swaps, settled upon the issuance of these notes, effectively set the interest rate on the $250 million notes at a weighted-average fixed rate of 3.45%. Separately, 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 USD SOFR plus 1.487% (previously U.S. three-month LIBOR plus 1.22%) with an effective variable rate of 6.94% as of November 30, 2023.

(2)Interest rate swaps, settled upon the issuance of these notes, effectively set the interest rate on the $750 million notes at a weighted-average fixed rate of 3.44%. Separately, the fixed interest rate on $250 million of the 3.40% notes due in 2027 is effectively converted to a variable rate by interest rate swaps through 2027. Net interest payments are based on USD SOFR plus 0.907% (previously U.S. three-month LIBOR plus 0.685%) with an effective rate of 6.32% as of November 30, 2023.

(3)Interest rate swaps, settled upon the issuance of these notes, effectively set the interest rate on the $500 million notes at a weighted-average fixed rate of 2.62%. Separately, the fixed interest rate on $250 million of the 2.50% notes due in 2030 is effectively converted to a variable rate by interest rate swaps through 2030. Net interest payments are based on USD SOFR plus 0.684% with an effective rate of 6.13% as of November 30, 2023.

(4)Treasury lock agreements, settled upon issuance of these notes, effectively set the interest rate on these $500 million notes at a weighted-average fixed rate of 5.00%.

(5)Includes unamortized discounts, premiums and debt issuance costs of $(25.4) million and $(25.9) million as of November 30, 2023 and 2022, respectively.  Includes fair value adjustment associated with interest rate swaps designated as fair value hedges of $(49.5) million and $(42.3) million as of November 30, 2023 and 2022, respectively.

Maturities of long-term debt, including finance leases, during the fiscal years subsequent to November 30, 2023 are as follows (in millions):

2024	$	799.3
2025	269.8
2026	509.3
2027	759.7
2028	10.4
Thereafter	1,865.6

In April 2023, we issued $500 million aggregate principal amount of 4.950% unsecured senior notes due 2033. Interest is payable semi-annually in April and October of each year, beginning on October 15, 2023. As part of the issuance of new debt, we entered and settled treasury locks in a notional amount of $250.0 million to manage our interest rate risk associated with the issuance of the unsecured senior notes. We designated the treasury lock

arrangements as cash flow hedges with the realized loss of $2.6 million to be amortized to interest expense over the life of the underlying debt.

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. Our committed lines include a five-year $1.5 billion revolving credit facility, which will expire in June 2026 and a 364-day $500 million revolving credit facility, which was entered into in June 2023 and will expire in June 2024. Upon entering into the June 2023 364-day $500 million revolving credit facility, we simultaneously cancelled the 364-day $500 million revolving credit facility which was set to expire in July 2023. In the second quarter of 2023, we amended our five-year revolving credit facility expiring in June 2026 to no longer use LIBOR. The current pricing for the five-year credit facility, on a fully drawn basis, is SOFR plus 1.25% (previously LIBOR plus 1.25%). The pricing of that credit facility is based on a credit rating grid that contains a fully drawn maximum pricing of the credit facility equal to SOFR plus 1.75% (previously LIBOR plus 1.75%). The current pricing for the 364-day credit facility, on a fully drawn basis, is SOFR plus 1.23%. The pricing of that credit facility is based on a credit rating grid that contains a fully drawn maximum pricing of the credit facility equal to SOFR plus 1.60%. These credit facilities require a fee, and commitment fees were $2.4 million, $2.1 million and $2.0 million for 2023, 2022, and 2021, respectively.

These credit facilities support our commercial paper program and, after $269.4 million was used to support issued commercial paper, we have $1,730.6 million of capacity at November 30, 2023. The provisions of these revolving credit facilities restrict subsidiary indebtedness and require us to maintain a minimum interest coverage ratio. As of November 30, 2023, our capacity under both revolving credit facilities was not affected by these covenants. We do not expect that these covenants would limit our access to our revolving credit facilities for the foreseeable future.

In addition, we have several uncommitted lines totaling $284.8 million, which have a total unused capacity at November 30, 2023 of $234.3 million. These lines, by their nature, can be withdrawn based on the lenders’ discretion.

In 2023, we executed a nonrecourse accounts receivable sale program whereby certain eligible U.S. receivables are sold to third party financial institution in exchange for cash. The program provides us with an additional means for managing liquidity. Under the terms of the arrangement, we act as the collecting agent on behalf of the financial institution. We account for the transfer of receivables as a sale at the point control is transferred through derecognition of the receivable on our consolidated balance sheet. The outstanding amount of receivables sold under this program were approximately $19.6 million at November 30, 2023. The incremental costs of factoring receivables under this arrangement were insignificant in 2023. The proceeds from the sales of receivables are included in cash flows from operating activities on the consolidated cash flow statement. As collecting agent on the sold receivables, we had $1.6 million of cash collected that was not yet remitted to the third party financial institution as of November 30, 2023. This obligation is reported within other accrued liabilities on the consolidated balance sheet as of November 30, 2023 and within cash flows from financing activities on the consolidated cash flow statement.

At November 30, 2023, we had no outstanding guarantees with terms of one year or less. As of November 30, 2023 and 2022, we had outstanding letters of credit of $62.4 million and $60.8 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 $13.7 million at November 30, 2023.