Debt

The following table summarizes the carrying value of our outstanding debt:



	Coupon		Carrying Value as of		Effective		Carrying Value as of		Effective
	Rate		June 30, 2012		Interest Rate		December 31, 2011		Interest Rate
	(In millions, except percentages)
Long-Term Debt
Senior notes due 2013	0.875	%	$	400	0.946	%	$	400	0.946	%
Senior notes due 2015	1.625	%	598		1.703	%	598		1.703	%
Senior notes due 2020	3.250	%	498		3.319	%	497		3.319	%
Total senior notes			1,496				1,495
Note payable			14				15
Capital lease obligations			8				15
Total long-term debt			$	1,518			$	1,525

Short-Term Debt
Commercial paper			$	550			$	550
Note payable			2				2
Capital lease obligations			12				13
Total short-term debt			564				565
Total Debt			$	2,082			$	2,090

Senior Notes

The effective rates for the fixed-rate debt include the interest on the notes and the accretion of the discount. Interest on these notes is payable semiannually on April 15 and October 15. Interest expense associated with these notes, including amortization of debt issuance costs, during the three and six months ended June 30, 2012 was approximately $8 million and $16 million, respectively. At June 30, 2012, the estimated fair value of all these senior notes included in long-term debt was approximately $1.5 billion based on market prices on less active markets (Level 2).

The indenture pursuant to which the senior notes were issued includes customary covenants that, among other things, limit our ability to incur, assume or guarantee debt secured by liens on specified assets or enter into sale and lease-back transactions with respect to specified properties, and also includes customary events of default.

Notes Payable

Notes payable consists primarily of a note that bears interest at 6.3% per annum and has a maturity date of December 2015.

Capital Lease Obligations

We acquired certain warehouse equipment and computer hardware and software under capital leases as part of our acquisition of GSI. The capital leases have maturity dates ranging from July 2012 to February 2016 and bear interest at rates ranging from 3% to 9% per annum. The present value of future minimum capital lease payments as of June 30, 2012 was as follows (in millions):



Gross capital lease obligations	$	21
Imputed interest	(1		)
Total present value of future minimum capital lease payments	$	20

Commercial Paper

We have a $2 billion commercial paper program pursuant to which we may issue commercial paper notes with maturities of up to 397 days from the date of issue. As of June 30, 2012, $550 million aggregate principal amount of commercial paper notes were outstanding, with a weighted average interest rate of 0.19% per annum, and a weighted average remaining term of 79 days.

Credit Agreement

As of June 30, 2012, no borrowings or letters of credit were outstanding under our $3 billion credit agreement. As described above, we have a $2 billion commercial paper program and maintain $2 billion of available borrowing capacity under our credit agreement in order to repay commercial paper borrowings in the event we are unable to repay those borrowings from other sources when they become due. As a result, at June 30, 2012, $1 billion of borrowing capacity was available for other purposes permitted by the credit agreement.

As of June 30, 2012, we were in compliance with all covenants in our outstanding debt instruments.