LONG-TERM DEBT

Debt consisted of the following at December 31,



(dollars in millions)	2012		2011
Commercial paper payable through 2013	$	203.8	$	46.5
Notes payable in 2012 at an interest rate of 4.875%	—		300.0
Industrial revenue bond payable in 2012 at an interest rate of 1.6%	—		8.0
Notes payable in 2014, at an interest rate of 5.65% less unamortized discount of $0.2 and $0.3, respectively	399.8		399.7
Notes payable in 2019, at an interest rate of 6.8% less unamortized discount of $0.8 and $0.9, respectively	399.2		399.1
Notes payable in 2021, at an interest rate of 4.5% includes $17.0 and $3.3 fair value of interest rate swap, respectively, less unamortized discount of $2.3 and $2.5, respectively	414.7		400.7
Debt of subsidiary companies	—		13.6
Obligations under capital leases	0.4		0.6

Total debt	1,417.9		1,568.2
Less current portion	0.3		13.4
Total long-term debt	$	1,417.6	$	1,554.8

Commercial paper has been classified as long-term debt to the extent of available long-term backup credit agreements, in accordance with the Company’s intent and ability to refinance such obligations on a long-term basis. The weighted-average interest rate of commercial paper outstanding at December 31, 2012, was 0.4 percent. The maximum amount of commercial paper outstanding during 2012 was $399.0 million, and the average outstanding during 2012 was $235.7 million. The weighted-average interest rate during 2012 was 0.4 percent.

As of December 31, 2012, the Company had available from its banks an $800 million revolving credit facility. This credit facility is used principally as back-up for the Company’s commercial paper program and expires on July 21, 2016. The revolving credit facility is supported by a group of major U.S. and international banks. Covenants imposed by the revolving credit facility include limits on the sale of businesses, minimum net worth calculations, and a maximum ratio of debt to total capitalization. The revolving credit agreement includes a combined $100 million multicurrency limit to support the financing needs of the Company’s international subsidiaries.

The Company funded the repayment of its $300 million aggregate principal amount of 4.875 percent notes due April 1, 2012 with the proceeds from commercial paper issuances. On October 4, 2011, the Company issued $400 million of notes due in 2021 with a fixed interest rate of 4.5 percent. The Company used the net proceeds of the notes to repay outstanding commercial paper and for general corporate purposes. Concurrent with the issuance, the Company entered into four interest rate swap agreements with a total notional amount of $400 million. These contracts were designated as hedges of the Company’s $400 million 4.5 percent fixed-rate debt due in 2021. The variable rate for each of the interest rate swaps is based on the six-month London Interbank Offered Rate (LIBOR), set in arrears, plus a fixed spread. The variable rates are reset semi-annually at each net settlement date. The net settlement benefit to the Company, which is recorded as a reduction in interest expense, was $7.0 million and $1.6 million in 2012 and 2011, respectively. At December 31, 2012 and 2011, the fair value of these interest rate swaps was $17.0 million and $3.3 million, respectively, in the Company’s favor, using discounted cash flow or other appropriate methodologies, and is included in deferred charges and other assets with a corresponding increase in long-term debt.

The industrial revenue bond had a variable interest rate which was determined weekly by a “Remarketing Agent” based on similar debt then available. The interest rate at December 31, 2011, was 1.6 percent and the weighted-average interest rate during 2011 was 1.7 percent. This bond was repaid at maturity in November 2012.

Long-term debt maturing in years 2013 and 2014 is $203.8 million and $399.8 million, respectively. There is no long-term debt maturing from 2015-2017. Certain of these amounts have been classified as long term liabilities in accordance with the Company’s ability and intent to refinance such obligations on a long term basis. The Company was in compliance with all debt covenants throughout 2012.