Borrowings

The Company’s outstanding borrowings consisted of the following (in millions):



	September 30, 2012			December 31, 2011
Due in less than one year:
Commercial paper	$	150.0		$	297.0
Floating rate notes (effective rate of 1.0%) due 2013	300.0			300.0
Due in greater than one year (a):
6.500% notes (effective rate of 5.6%) due 2014	500.0			500.0
5.930% notes due 2016 (b)	1,000.0			1,000.0
3.650% notes (effective rate of 4.4%) due 2018	400.0			400.0
5.253% notes due 2020 (b)	324.9			324.9
6.200% notes due 2036 (b)	500.0			500.0
6.200% notes due 2040 (b)	250.0			250.0
Other borrowings	5.8			8.8
Total borrowings at par value	3,430.7			3,580.7
Fair value hedge accounting adjustments, net (a)	21.7			23.9
Unamortized discount, net	(19.4		)	(21.4		)
Total borrowings at carrying value (c)	$	3,433.0		$	3,583.2

____________________

(a)

The Company utilizes interest rate swaps designated as fair value hedges to effectively change the interest rate payments on a portion of its notes from fixed-rate payments to short-term LIBOR-based variable rate payments in order to manage its overall exposure to interest rates. The changes in fair value of these interest rate swaps result in an offsetting hedge accounting adjustment recorded to the carrying value of the related note. These hedge accounting adjustments will be reclassified as reductions to or increases in “Interest expense” in the Condensed Consolidated Statements of Income over the life of the related notes, and cause the effective rate of interest to differ from the notes’ stated rate.


(b)	The difference between the stated interest rate and the effective interest rate is not significant.


(c)	As of September 30, 2012, the Company's weighted-average effective rate on total borrowings was approximately 5.0%.

The Company's maturities of borrowings at par value as of September 30, 2012 are $150.0 million in 2012, $300.0 million in 2013, $500.0 million in 2014, $1.0 billion in 2016 and approximately $1.5 billion thereafter.

The Company's obligations with respect to its outstanding borrowings, as described above, rank equally.

Commercial Paper Program

Pursuant to the Company's commercial paper program, the Company may issue unsecured commercial paper notes in an amount not to exceed $1.5 billion outstanding at any time, reduced to the extent of borrowings outstanding on the Company's Revolving Credit Facility. The Commercial Paper Notes may have maturities of up to 397 days from date of issuance. The Company's commercial paper borrowings as of September 30, 2012 had a weighted-average annual interest rate of approximately 0.4% and a weighted-average term of 1 day. During the three and nine months ended September 30, 2012, the average commercial paper balance outstanding was $171.8 million and $206.7 million, respectively. During the three and nine months ended September 30, 2012, the maximum balance outstanding was $390.0 million and $422.8 million, respectively. Proceeds from the Company's commercial paper borrowings were used for general corporate purposes.