Long-Term Debt and Financing Arrangements

3 Months Ended

Apr. 04, 2015

Long-Term Debt and Financing Arrangements

Long-Term Debt and Financing Arrangements

Long-term debt and financing arrangements at April 4, 2015 and January 3, 2015 are as follows:

(Millions of Dollars)	Interest Rate	April 4, 2015			January 3, 2015
Notes payable due 2018 (junior subordinated)	2.25%	$	345.0		$	345.0
Notes payable due 2018 (junior subordinated)	4.25%	632.5			632.5
Notes payable due 2021	3.40%	410.5			403.9
Notes payable due 2022	2.90%	753.8			753.8
Notes payable due 2028	7.05%	170.2			166.0
Notes payable due 2040	5.20%	362.4			362.1
Notes payable due 2052 (junior subordinated)	5.75%	750.0			750.0
Notes payable due 2053 (junior subordinated)	5.75%	404.1			398.7
Other, payable in varying amounts through 2021	0.00% – 6.62%	33.0			33.7
Total long-term debt, including current maturities		$	3,861.5		$	3,845.7
Less: Current maturities of long-term debt		(5.8		)	(5.9		)
Long-term debt		$	3,855.7		$	3,839.8

At April 4, 2015, the Company had fixed-to-floating interest rate swaps on its $400.0 million notes payable due 2021. The carrying value of the notes payable due 2021 includes $12.3 million pertaining to the unamortized gain on previously terminated swaps, a loss of $1.5 million pertaining to fair value adjustments of the swaps, and $0.3 million of unamortized discount on the notes.

At April 4, 2015, the Company's carrying value on its $754.3 million notes payable due 2022 includes $0.5 million of unamortized discount on the notes.

At April 4, 2015, the Company had fixed-to-floating interest rate swaps on its $150.0 million notes payable due 2028. The carrying value of the notes payable due 2028 includes a gain of $14.0 million pertaining to fair value adjustments made in purchase accounting and a gain of $6.2 million pertaining to fair value adjustments of the swaps.

At April 4, 2015, the Company's carrying value of its $400.0 million notes payable due 2040 includes $37.3 million pertaining to the unamortized loss on previously terminated swaps and $0.3 million of unamortized discount on the notes.

At April 4, 2015, the Company had fixed-to-floating interest rate swaps on its $400.0 million notes payable due 2053. The carrying value of the notes payable due 2053 includes a gain of $4.1 million pertaining to fair value adjustments of the swaps.

Unamortized gains and fair value adjustments associated with interest rate swaps and the impact of terminated swaps are more fully discussed in Note H, Derivative Financial Instruments.

As of April 4, 2015, the Company had $585.2 million of borrowings outstanding against the Company’s $2.0 billion commercial paper program and at January 3, 2015, the Company had no commercial paper borrowings outstanding. As of April 4, 2015, the Company has not drawn on the $1.5 billion committed credit facility.