NOTE 7: DEBT

Debt is summarized as follows:


in thousands	*March 31* *2013*		December 31 2012		March 31 2012
Long-term Debt
Bank line of credit		$0		$0		$0
5.60% notes due 2012 ¹		0		0		134,521
6.30% notes due 2013 ²		140,430		140,413		140,367
10.125% notes due 2015 ³		152,520		152,718		153,284
6.50% notes due 2016 ⁴		514,221		515,060		517,503
6.40% notes due 2017 ⁵		349,892		349,888		349,874
7.00% notes due 2018 ⁶		399,741		399,731		399,702
10.375% notes due 2018 ⁷		248,716		248,676		248,562
7.50% notes due 2021 ⁸		600,000		600,000		600,000
7.15% notes due 2037 ⁹		239,555		239,553		239,547
Medium-term notes		6,000		16,000		16,000
Industrial revenue bonds		14,000		14,000		14,000
Other notes		949		964		1,098
Total long-term debt including current maturities		$2,666,024		$2,677,003		$2,814,458
Less current maturities		140,604		150,602		144,706
Total long-term debt		$2,525,420		$2,526,401		$2,669,752

Estimated fair value of long-term debt		$2,851,237		$2,766,835		$2,864,657

Includes decreases for unamortized discounts, as follows: March 31, 2012 — $36 thousand.

Includes decreases for unamortized discounts, as follows: March 31, 2013 — $14 thousand, December 31, 2012 — $30 thousand and March 31, 2012 — $77 thousand. The effective interest rate for these notes is 7.48%.

Includes an increase for the unamortized portion of the deferred gain realized upon the August 2011 settlement of interest rate swaps, as follows: March 31, 2013 — $2,766 thousand, December 31, 2012 — $2,983 thousand and March 31, 2012 — $3,604 thousand. Additionally, includes decreases for unamortized discounts, as follows: March 31, 2013 — $246 thousand, December 31, 2012 — $265 thousand and March 31, 2012 — $320 thousand. The effective interest rate for these notes is 9.59%.

⁴

Includes an increase for the unamortized portion of the deferred gain realized upon the August 2011 settlement of interest rate swaps, as follows: March 31, 2013 — $14,221 thousand, December 31, 2012 — $15,060 thousand and March 31, 2012 — $17,503 thousand. The effective interest rate for these notes is 6.02%.

⁵

Includes decreases for unamortized discounts, as follows: March 31, 2013 — $108 thousand, December 31, 2012 — $112 thousand and March 31, 2012 — $126 thousand. The effective interest rate for these notes is 7.41%.

⁶

Includes decreases for unamortized discounts, as follows: March 31, 2013 — $259 thousand, December 31, 2012 — $269 thousand and March 31, 2012 — $298 thousand. The effective interest rate for these notes is 7.87%.

⁷

Includes decreases for unamortized discounts, as follows: March 31, 2013 — $1,284 thousand, December 31, 2012 — $1,324 thousand and March 31, 2012 — $1,438 thousand. The effective interest rate for these notes is 10.62%.

⁸

The effective interest rate for these notes is 7.75%.

⁹

Includes decreases for unamortized discounts, as follows: March 31, 2013 — $633 thousand, December 31, 2012 — $635 thousand and March 31, 2012 — $641 thousand. The effective interest rate for these notes is 8.05%.

Our long-term debt is presented in the table above net of unamortized discounts from par and unamortized deferred gains realized upon settlement of interest rate swaps. Discounts and deferred gains are being amortized using the effective interest method over the respective terms of the notes.

The estimated fair value of long-term debt presented in the table above was determined by averaging the asking price quotes for the notes. The fair value estimates were based on Level 2 information (as defined in Note 5) 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 revalued since those dates.

Scheduled dept payments during the first quarter of 2013 included $10,000,000 in January to retire the 8.70% medium-term note. Scheduled debt payments during 2012 included $134,557,000 in November to retire the remaining portion of the 5.60% notes.

In December 2011, we entered into a $600,000,000 bank line of credit expiring on December 15, 2016. In March 2013, we proactively amended this line of credit to reduce its capacity to $500,000,000 and extend its term to March 12, 2018. The line of credit is secured by certain domestic accounts receivable and inventory. Borrowing capacity fluctuates with the level of eligible accounts receivable and inventory and may be less than $500,000,000 at any point in time.

Borrowings under the line of credit bear interest at a rate determined at the time of borrowing equal to the lower of LIBOR plus a margin ranging from 1.50% to 2.00% based on the level of utilization, or an alternative rate derived from the lender’s prime rate. As of March 31, 2013, the applicable margin for LIBOR based borrowing was 1.50%.