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Financing Arrangements
12 Months Ended
Dec. 31, 2017
Debt Disclosure [Abstract]  
Financing Arrangements Note 10 - Financing Arrangements
Short-term debt as of December 31, 2017 and 2016 was as follows:
 
2017
2016
Variable-rate Accounts Receivable Facility with an interest rate of 2.15% at December 31, 2017
$
62.9

$

Borrowings under variable-rate lines of credit for certain of the Company’s foreign subsidiaries with various banks with interest rates ranging from 0.32% to 2.22% at December 31, 2017 and 0.50% at December 31, 2016
42.5

19.2

Short-term debt
$
105.4

$
19.2



The Company has a $100 million Accounts Receivable Facility that matures on November 30, 2018. The Company is exploring opportunities to refinance the facility prior to its maturity. Under the terms of the Accounts Receivable Facility, the Company sells, on an ongoing basis, certain domestic trade receivables to Timken Receivables Corporation, a wholly owned consolidated subsidiary that, in turn, uses the trade receivables to secure borrowings that are funded through a vehicle that issues commercial paper in the short-term market. Borrowings under the Accounts Receivable Facility are limited to certain borrowing base limitations. These limitations reduced the availability of the Accounts Receivable Facility to $82.3 million at December 31, 2017. As of December 31, 2017, there were outstanding borrowings of $62.9 million under the Accounts Receivable Facility, which reduced the availability under this facility to $19.4 million. The cost of this facility, which is the prevailing commercial paper rate plus program fees, is considered a financing cost and is included in interest expense in the Consolidated Statements of Income. The outstanding balance under the Accounts Receivable Facility was classified as short term or long term in accordance with the terms of the agreement. In 2016, the classification of the outstanding balance reflected the Company's expectations relative to the minimum borrowing base. The yield rate was 2.15%, 1.65% and 1.05%, at December 31, 2017, 2016 and 2015, respectively.
The lines of credit for certain of the Company’s foreign subsidiaries provide for short-term borrowings up to $288.9 million in the aggregate. Most of these lines of credit are uncommitted. At December 31, 2017, the Company’s foreign subsidiaries had borrowings outstanding of $42.5 million and guarantees of $0.2 million, which reduced the aggregate availability under these facilities to $246.2 million. The weighted-average interest rate on these lines of credit during the year were 0.7%, 0.7% and 1.1% in 2017, 2016 and 2015, respectively. The weighted-average interest rate on lines of credit outstanding at December 31, 2017 and 2016 was 0.41% and 0.50%, respectively. The decrease in the weighted-average interest rate was primarily due to increased borrowings in the United States at a lower rate.
Long-term debt as of December 31, 2017 and 2016 was as follows:
 
2017
2016
Fixed-rate Medium-Term Notes, Series A, maturing at various dates through May 2028, with interest rates ranging from 6.74% to 7.76%
$
154.5

$
159.5

Fixed-rate Senior Unsecured Notes, maturing on September 1, 2024, with an interest rate of 3.875%
346.9

345.9

Variable-rate Senior Credit Facility with a weighted-average interest rate of 1.83% at December 31, 2017 and 1.50% at December 31, 2016
52.0

83.8

Variable-rate Accounts Receivable Facility with an interest rate of 1.65% at December 31, 2016

48.9

Fixed-rate Euro Senior Unsecured Notes, maturing on September 7, 2027, with an interest rate of 2.02%
179.3


Variable-rate Euro Term Loan with an interest rate of 1.13% at December 30, 2017
119.7


Other
4.5

1.9

Total debt
$
856.9

$
640.0

Less current maturities
2.7

5.0

Long-term debt
$
854.2

$
635.0






The Company has a $500 million Senior Credit Facility, which matures on June 19, 2020. At December 31, 2017, the Company had $52.0 million of outstanding borrowings under the Senior Credit Facility, which reduced the availability under this facility to $448.0 million. The Senior Credit Facility has two financial covenants: a consolidated leverage ratio and a consolidated interest coverage ratio. At December 31, 2017, the Company was in full compliance with both of these covenants.

On September 7, 2017, the Company issued the 2027 Notes in the aggregate principle amount of €150 million of fixed-rate 2.02% senior unsecured notes. On September 18, 2017, the Company entered into the 2020 Term Loan that provided €100 million. Proceeds from the 2027 Notes and 2020 Term Loan were used to repay amounts drawn from the Senior Credit Facility to fund the Groeneveld acquisition, which closed on July 3, 2017. Refer to Note 3 - Acquisitions and Divestitures for additional information. These debt instruments have two financial covenants: a consolidated leverage ratio and a consolidated interest coverage ratio. These covenants are similar to those in the Senior Credit Facility. At December 31, 2017, the Company was in full compliance with both of these covenants.
The maturities of long-term debt for the five years subsequent to December 31, 2017 are as follows:
Year
 
2018
$
2.7

2019

2020
171.7

2021
1.7

2022

Thereafter
680.8


Interest paid was $31.5 million in 2017, $30.1 million in 2016 and $32.1 million in 2015. This differs from interest expense due to the timing of payments and interest capitalized of $0.7 million in 2017, $1.1 million in 2016 and zero in 2015.
The Company and its subsidiaries lease a variety of real property and equipment. Rent expense under operating leases amounted to $35.2 million, $30.0 million and $33.5 million in 2017, 2016 and 2015, respectively.
Future minimum lease payments for noncancelable operating leases at December 31, 2017 are as follows:
Year
 
2018
$
33.5

2019
25.9

2020
20.7

2021
12.1

2022
6.8

Thereafter
6.4