Debt and Lease Commitments

12 Months Ended

Dec. 31, 2014

9.	Debt and Lease Commitments


December 31 (dollars in millions)	2014		2013
Bank credit lines, average year-end interest rates of 2.7% for 2014 and 2.4% for 2013	$	8.0	$	3.6

Revolving credit agreement borrowings, average year-end interest rates of 1.3% for 2014 and 2013		130.0		80.0

Commercial paper, average year-end interest rates of 1.1% for 2014 and 2013		42.5		48.9

Term notes with insurance companies, expiring through 2018, average year-end interest rates of 6.1% for 2014 and 6.0% for 2013		22.6		31.2

Canadian term notes with insurance companies, expiring through 2018, average year-end interest rates of 5.3% for 2014 and 2013		20.7		28.2

		223.8		191.9
Less long-term debt due within one year		13.7		14.2

Long-term debt	$	210.1	$	177.7

The company has a $400 million multi-year multi-currency revolving credit agreement with a group of eight banks, which expires on December 12, 2017. The facility has an accordion provision which allows it to be increased up to $500 million if certain conditions (including lender approval) are satisfied. Borrowings under the company’s bank credit lines and commercial paper borrowings are supported by the revolving credit agreement. As a result of the long-term nature of this facility, the commercial paper and credit line borrowings are classified as long-term debt at December 31, 2014 and 2013. At its option, the company either maintains cash balances or pays fees for bank credit and services.

Scheduled maturities of long-term debt within each of the five years subsequent to December 31, 2014 are as follows:


Years ending December 31 (dollars in millions)	Amount
2015	$	13.7
2016		13.7
2017		188.4
2018		8.0
2019		—

Future minimum payments under non-cancelable operating leases relating mostly to office, manufacturing and warehouse facilities total $25.7 million and are due as follows:


Years ending December 31 (dollars in millions)	Amount
2015	$	7.6
2016		5.5
2017		4.0
2018		3.5
2019		2.0
Thereafter		3.1

Rent expense, including payments under operating leases, was $24.3 million, $20.7 million and $18.3 million in 2014, 2013 and 2012, respectively.

Interest paid by the company was $5.8 million, $5.9 million and $9.4 million in 2014, 2013 and 2012, respectively. The company capitalized interest expense of $0.4 million and $0.8 million in 2014 and 2013, respectively.

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

+ References+ Details