Credit Facilities, Short-term Borrowings and Long-term Debt

6 Months Ended

Jun. 30, 2011

Credit Facilities, Short-term Borrowings and Long-term Debt [Abstract]

CREDIT FACILITIES, SHORT-TERM BORROWINGS AND LONG-TERM DEBT

NOTE 11: CREDIT FACILITIES, SHORT-TERM BORROWINGS AND LONG-TERM DEBT

Short-term borrowings are summarized as follows:

	June 30		December 31		June 30
dollars in thousands	2011		2010		2010
Short-term Borrowings
Bank borrowings		$100,000		$285,500		$0
Commercial paper		0		0		320,000
Total		$100,000		$285,500		$320,000
Bank Borrowings
Maturity	15 days		3 - 74 days			n/a
Weighted-average interest rate		0.53 %		0.59 %		n/a
Commercial Paper
Maturity		n/a		n/a	1 - 2 days
Weighted-average interest rate		n/a		n/a		0.70%

We utilize our bank lines of credit to fund our working capital and for general corporate purposes. Bank lines of credit totaling $1,500,000,000 were maintained at June 30, 2011, all of which expire November 16, 2012. Interest rates referable to borrowings under these lines of credit are determined at the time of borrowing based on current market conditions. Bank loans totaled $100,000,000 as of June 30, 2011 and were borrowed for 15 days at 0.53%.

All lines of credit extended to us in 2011 and 2010 required no compensating balances. In the normal course of business, we maintain balances in our bank accounts for which we are credited with earnings allowances toward our cash management related service fees. To the extent the earnings allowances are not sufficient to fully cover the related fees for these non-credit services, we pay the difference.

In June 2011, we issued $1,100,000,000 of long-term notes in two series, as follows: $500,000,000 of 6.50% notes due in 2016 and $600,000,000 of 7.50% notes due in 2021. These notes were issued principally to:

§	repay and terminate our $450,000,000 5-year floating-rate term loan,
§	fund the purchase of $165,443,000 of our outstanding 5.60% 5-year notes issued in 2007 and $109,556,000 of our outstanding 6.30% 5-year notes issued in 2008 through a tender offer,
§	repay $275,000,000 outstanding under our revolving credit facility,
§	and for general corporate purposes.

The aforementioned $450,000,000 5-year term loan was established in July 2010 in order to repay the $100,000,000 outstanding balance of our 3-year syndicated term loan issued in 2008 and all outstanding commercial paper. Unamortized deferred financing costs of $2,423,000 were recognized in June 2011 as a component of interest expense upon the termination of the term loan.

The 5.60% and 6.30% 5-year notes were purchased for total consideration of $294,533,000, representing a $19,534,000 premium above the $274,999,000 face value of the notes. This premium primarily reflects the trading price of the notes at the time of purchase relative to par value. Additionally, $4,711,000 of expense associated with a proportional amount of unamortized discounts, deferred financing costs and amounts accumulated in OCI was recognized in June 2011 upon the partial termination of the notes. The combined expense of $24,245,000 is presented in the accompanying Condensed Consolidated Statements of Comprehensive Income as a component of interest expense for the three and six month periods ended June 30, 2011.

As of June 30, 2011, $40,000 of our long-term debt, including current maturities, was secured. This secured debt was assumed with the November 2007 acquisition of Florida Rock. All other debt obligations, both short-term and long-term, are unsecured.

Long-term debt is summarized as follows:

	June 30			December 31		June 30
in thousands	2011			2010		2010
Long-term Debt
6.50% 5.5-year notes issued 20111		$500,000			$0		$0
7.50% 10-year notes issued 20112		600,000			0		0
5-year floating-rate term loan issued 2010		0			450,000		0
10.125% 7-year notes issued 20093		149,628			149,597		149,567
10.375% 10-year notes issued 20094		248,457			248,391		248,329
3-year floating-rate term loan issued 2008		0			0		100,000
6.30% 5-year notes issued 20085		140,322			249,729		249,680
7.00% 10-year notes issued 20086		399,675			399,658		399,641
3-year floating-rate notes issued 2007		0			0		325,000
5.60% 5-year notes issued 20077		134,483			299,773		299,719
6.40% 10-year notes issued 20078		349,861			349,852		349,844
7.15% 30-year notes issued 20079		239,717			249,324		249,321
Private placement notes		0			0		15,181
Medium-term notes		21,000			21,000		21,000
Industrial revenue bonds		14,000			14,000		17,550
Other notes		1,349			1,438		1,648
Fair value adjustments 10		(7,419	)		0		0
Total debt excluding short-term borrowings		$2,791,073			$2,432,762		$2,426,480
Less current maturities of long-term debt		5,230			5,246		425,300
Total long-term debt		$2,785,843			$2,427,516		$2,001,180
Estimated fair value of total long-term debt		$2,857,684			$2,559,059		$2,240,447

1	The effective interest rate for these notes is 6.85% , excluding the impact of the interest rate swap described in Note 6.
2	The effective interest rate for these notes is 7.73% .
3	Includes decreases for unamortized discounts, as follows: June 30, 2011 — $372 thousand, December 31, 2010 — $403 thousand and June 30, 2010 — $433 thousand. The effective interest rate for these notes is 10.31% , excluding the impact of the interest rate swap described in Note 6.
4	Includes decreases for unamortized discounts, as follows: June 30, 2011 — $1,543 thousand, December 31, 2010 — $1,609 thousand and June 30, 2010 — $1,671 thousand. The effective interest rate for these notes is 10.58%.
5	Includes decreases for unamortized discounts, as follows: June 30, 2011 — $122 thousand, December 31, 2010 — $271 thousand and June 30, 2010 — $320 thousand. The effective interest rate for these notes is 7.46%.
6	Includes decreases for unamortized discounts, as follows: June 30, 2011 — $325 thousand, December 31, 2010 — $342 thousand and June 30, 2010 — $359 thousand. The effective interest rate for these notes is 7.86%.
7	Includes decreases for unamortized discounts, as follows: June 30, 2011 — $74 thousand, December 31, 2010 — $227 thousand and June 30, 2010 — $281 thousand. The effective interest rate for these notes is 6.55%.
8	Includes decreases for unamortized discounts, as follows: June 30, 2011 — $139 thousand, December 31, 2010 — $148 thousand and June 30, 2010 — $156 thousand. The effective interest rate for these notes is 7.39%.
9	Includes decreases for unamortized discounts, as follows: June 30, 2011 — $646 thousand, December 31, 2010 — $676 thousand and June 30, 2010 — $679 thousand. The effective interest rate for these notes is 8.04%.
10	See Note 6 for additional information about our fair value hedging strategy.

The estimated fair value of total long-term debt presented in the table above was determined by discounting expected future cash flows based on credit-adjusted interest rates on U.S. Treasury bills, notes or bonds, as appropriate. The fair value estimates were based on information available to us as of the respective balance sheet dates. Although we are not aware of any factors that would significantly affect the estimated fair value amounts, such amounts have not been comprehensively revalued since those dates.

Our bank credit facility and the indentures governing our notes contain a covenant limiting our total debt as a percentage of total capital to 65%. Our total debt as a percentage of total capital was 42.7% as of June 30, 2011; 40.7% as of December 31, 2010; and 40.5% as of June 30, 2010.