Short-term and Long-term Debt

9 Months Ended

Oct. 03, 2015

Note 8: Short-term and Long-term Debt

Short-term and long-term debt as of October 3, 2015, and January 3, 2015, consisted of the following:


	October 3,		January 3,
(Amounts in millions)	2015		2015
5.50% unsecured notes due 2017	$	150.0	$	150.0
4.25% unsecured notes due 2018		250.0		250.0
6.70% unsecured notes due 2019		200.0		200.0
6.125% unsecured notes due 2021		250.0		250.0
Other debt*		87.7		69.3

		937.7		919.3
Less: notes payable		(73.6)		(56.6)

Total long-term debt	$	864.1	$	862.7

* Includes fair value adjustments related to interest rate swaps.

Notes payable of $73.6 million as of October 3, 2015, included $45.2 million of commercial paper borrowings and $28.4 million of other notes. Notes payable of $56.6 million as of 2014 year end included $37.0 million of commercial paper borrowings and $19.6 million of other notes. There were no current maturities of long-term debt as of October 3, 2015, or January 3, 2015.

Snap-on has a five-year, $700 million multi-currency revolving credit facility that terminates on September 27, 2018 (the “Credit Facility”); no amounts were outstanding under the Credit Facility as of October 3, 2015. Borrowings under the Credit Facility bear interest at varying rates based on Snap-on’s then-current, long-term debt ratings. The Credit Facility’s financial covenant requires that Snap-on maintain, as of each fiscal quarter end, either (i) a ratio not greater than 0.60 to 1.00 of consolidated net debt (consolidated debt net of certain cash adjustments) to the sum of such consolidated net debt plus total equity and less accumulated other comprehensive income or loss; or (ii) a ratio not greater than 3.50 to 1.00 of such consolidated net debt to earnings before interest, taxes, depreciation, amortization and certain other adjustments for the preceding four fiscal quarters then ended. As of October 3, 2015, the company’s actual ratios of 0.26 and 1.08, respectively, were both within the permitted ranges set forth in this financial covenant.

Snap-on’s Credit Facility and other debt agreements also contain certain usual and customary borrowing, affirmative, negative and maintenance covenants. As of October 3, 2015, Snap-on was in compliance with all covenants of its Credit Facility and other debt agreements.