FOOTNOTE 10

Debt

The following is a summary of outstanding debt as of December 31, (in millions):


	2017			2016
2.05% senior notes due 2017	$	—		$	349.4
6.25% senior notes due 2018		—			249.8
2.15% senior notes due 2018		299.5			298.9
2.60% senior notes due 2019		266.7			995.0
2.875% senior notes due 2019		348.6			347.9
4.70% senior notes due 2020		304.3			380.0
3.15% senior notes due 2021		993.6			991.7
3.75% senior notes due 2021		373.2			326.9
4.00% senior notes due 2022		248.8			248.5
3.85% senior notes due 2023		1,738.8			1,737.0
5.00% senior notes due 2023		312.1			314.1
4.00% senior notes due 2024		495.8			495.2
3.90% senior notes due 2025		297.2			296.8
4.20% senior notes due 2026		1,982.7			1,981.0
5.375% senior notes due 2036		495.0			494.7
5.50% senior notes due 2046		1,726.0			1,725.7
Term loan (1)		299.8			399.5
Commercial paper		—			—
Receivables facility		298.3			187.4
Other debt		72.0			73.3

Total debt		10,552.4			11,892.8
Short-term debt and current portion of long-term debt		(662.8	)		(601.9	)

Long-term debt	$	9,889.6		$	11,290.9

(1) At December 31, 2017, the interest rate on the term loan, which matures in April 2019, was approximately 3.1%

Senior Notes

In March 2017, the Company commenced cash tender offers (the “Tender Offers”) totaling approximately $1.06 billion for any and all of its 6.25% senior notes due 2018 and up to a maximum aggregate principal amount of certain of its other senior notes. In March 2017, pursuant to the Tender Offers the Company repurchased approximately $63 million aggregate principal amount of its 6.25% senior notes due 2018, approximately $733 million aggregate principal amount of its 2.6% senior notes due 2019 and approximately $76 million aggregate principal amount of its 4.0% senior notes due 2020 for total consideration, excluding accrued interest, of approximately $897 million. As a result of these debt extinguishments, the Company recorded a loss on the extinguishment of debt of $27.8 million during the first quarter of 2017, primarily comprised of prepayment premiums and a non-cash charge due to the write-off of deferred debt issuance costs.

In April 2017, the Company redeemed the remaining approximately $187 million aggregate principal amount of its 6.25% senior notes due 2018 for total consideration, excluding accrued interest of approximately $195 million. As a result of this debt extinguishment, the Company recorded a loss on the extinguishment of debt of $4.5 million during the three months ended June 30, 2017, primarily comprised of prepayment premiums, partially offset by the write-off of a deferred gain on previously terminated interest rate swaps.

Generally, the senior notes are redeemable by the Company at a price equal to the greater of (i) the aggregate principal amount of the senior notes to be redeemed or (ii) the sum of the present values of the remaining scheduled payments, plus in each case, accrued and unpaid interest. Additionally, generally within three and six months to scheduled maturity, depending on the debt instrument, the senior notes may be redeemed at a price equal to the aggregate principal amount of the notes being redeemed, plus accrued and unpaid interest.

Revolving Credit Facility and Commercial Paper

The Company maintains a $1.25 billion revolving credit facility that matures in January 2022 (the “Facility”). Under the Facility, the Company may borrow funds on a variety of interest rate terms. The Facility also provides for the issuance of up to $100 million of letters of credit, so long as there is a sufficient amount available for borrowing under the Facility.

Receivables Facility

The Company maintains a $950 million receivables purchase agreement that matures in October 2019 (the “Securitization Facility”) and bears interest at a margin over a variable interest rate. At December 31, 2017, the borrowing rate margin and the unused line fee on the Securitization Facility were 0.80% and 0.40% per annum, respectively.

Future Debt Maturities

The Company’s debt maturities for the five years following December 31, 2017 and thereafter are as follows (in millions):


2018	2019	2020	2021	2022	Thereafter	Total
$671.9	$919.2	$306.8	$1,362.0	$251.2	$7,103.7	$10,614.8

Other

The indentures governing the Company’s senior notes contain usual and customary nonfinancial covenants. The Company’s borrowing arrangements other than the senior notes contain usual and customary nonfinancial covenants and certain financial covenants, including minimum interest coverage and maximum debt-to-total-capitalization ratios.

At December 31, 2017 and 2016, unamortized deferred debt issue costs were $68.9 and $80.1. These costs are included in total debt and are being amortized over the respective terms of the underlying debt.

The fair values of the Company’s senior notes are based on quoted market prices and are as follows (in millions):


	December 31, 2017				December 31, 2016
	Fair Value		Book Value		Fair Value		Book Value
Senior notes	$	10,688.5	$	9,882.3	$	11,979.2	$	11,234.1

The carrying amounts of all other significant debt approximates fair value.

Net Investment Hedge

The Company has designated the €300.0 million principal balance of the 3.75% senior notes due October 2021 as a net investment hedge of the foreign currency exposure of its net investment in certain Euro-functional currency subsidiaries with Euro-denominated net assets. At December 31, 2017, $19.7 million of deferred losses have been recorded in AOCI. See Footnote 11 for disclosures regarding the Company’s derivative financial instruments.