INDEBTEDNESS

6 Months Ended

Jun. 30, 2016

NOTE 13. INDEBTEDNESS

The following table summarizes total indebtedness:

		June 30, 2016
			Principal Amount		Fair Value of Interest Rate Swap⁽¹⁾		Unamortized (Discount) Premium		Unamortized Debt Issuance Costs⁽²⁾		Carrying Value
Notes Payable:
	6.06% Series 2007-1 Notes due 2017	$	300.0	$	-	$	-	$	(0.1)	$	299.9
	5.50% 2010 Senior Notes, due 2020		500.0		25.5		(1.5)		(1.8)		522.2
	4.50% 2012 Senior Notes, due 2022		500.0		-		(2.6)		(2.3)		495.1
	4.875% 2013 Senior Notes, due 2024		500.0		-		(2.2)		(2.9)		494.9
	2.75% 2014 Senior Notes (5-Year), due 2019		450.0		12.0		(0.5)		(2.1)		459.4
	5.25% 2014 Senior Notes (30-Year), due 2044		600.0		-		3.3		(6.0)		597.3
	1.75% 2015 Senior Notes, due 2027		555.5		-		-		(3.9)		551.6
Total long-term debt		$	3,405.5	$	37.5	$	(3.5)	$	(19.1)	$	3,420.4
		December 31, 2015
			Principal Amount		Fair Value of Interest Rate Swap⁽¹⁾		Unamortized (Discount) Premium		Unamortized Debt Issuance Costs⁽²⁾		Carrying Value
Notes Payable:
	6.06% Series 2007-1 Notes due 2017	$	300.0	$	-	$	-	$	(0.2)	$	299.8
	5.50% 2010 Senior Notes, due 2020		500.0		9.4		(1.6)		(2.0)		505.8
	4.50% 2012 Senior Notes, due 2022		500.0		-		(2.8)		(2.5)		494.7
	4.875% 2013 Senior Notes, due 2024		500.0		-		(2.3)		(3.1)		494.6
	2.75% 2014 Senior Notes (5-Year), due 2019		450.0		2.3		(0.5)		(2.4)		449.4
	5.25% 2014 Senior Notes (30-Year), due 2044		600.0		-		3.4		(6.2)		597.2
	1.75% 2015 Senior Notes, due 2027		543.1		-		-		(4.0)		539.1
Total long-term debt		$	3,393.1	$	11.7	$	(3.8)	$	(20.4)	$	3,380.6
⁽¹⁾ The Company has entered into interest rate swaps on the 2010 Senior Notes and the 2014 Senior Notes (5-Year) which are more fully discussed in Note 7 above.
⁽²⁾Pursuant to ASU No. 2015-03, unamortized debt issuance costs are presented as a reduction to the carrying value of the notes payable. See Note 1 for additional discussion.

At June 30, 2016, the Company was in compliance with all covenants contained within all of the debt agreements. The 2015 Facility, the 2015 Senior Notes, the 2014 Senior Notes (5-year), the 2014 Senior Notes (30-year), the Series 2007-1 Notes, the 2010 Senior Notes, the 2012 Senior Notes and the 2013 Senior Notes all contain cross default provisions. These provisions state that default under one of the aforementioned debt instruments could in turn permit lenders under other debt instruments to declare borrowings outstanding under those instruments to be immediately due and payable. As of June 30, 2016, there were no such cross defaults.

Interest expense, net

The following table summarizes the components of interest as presented in the consolidated statements of operations:

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2016		2015		2016		2015
Income	$	2.8	$	2.3	$	5.7	$	4.2
Expense on borrowings		(35.4)		(30.7)		(70.0)		(59.0)
Expense on UTPs and other tax related liabilities		(1.7)		(3.5)		(4.5)		(6.7)
Capitalized		-		-		0.4		0.3
Total	$	(34.3)	$	(31.9)	$	(68.4)	$	(61.2)

The following table shows the cash paid for interest:

	Six Months Ended
	June 30,
	2016		2015
Interest paid	$	73.9	$	53.3

The fair value and carrying value of the Company’s long-term debt as of June 30, 2016 and December 31, 2015 are as follows:

	June 30, 2016				December 31, 2015
	Carrying Amount		Estimated Fair Value		Carrying Amount		Estimated Fair Value
Series 2007-1 Notes	$	299.9	$	316.6	$	299.8	$	320.6
2010 Senior Notes		522.2		566.9		505.8		551.2
2012 Senior Notes		495.1		558.7		494.7		530.0
2013 Senior Notes		494.9		569.9		494.6		533.8
2014 Senior Notes (5-Year)		459.4		463.8		449.4		454.3
2014 Senior Notes (30-Year)		597.3		734.0		597.2		617.7
2015 Senior Notes		551.6		577.6		539.1		520.2
Total	$	3,420.4	$	3,787.5	$	3,380.6	$	3,527.8

The fair value of the Company’s long-term debt is estimated based on quoted market prices for similar instruments. Accordingly, the inputs used to estimate the fair value of the Company’s long-term debt are classified as Level 2 inputs within the fair value hierarchy.