Note 7: Debt

Debt is summarized as follows:



		June 30	December 31	June 30
in thousands		2013	2012	2012
Short-term Debt
Bank line of credit		$ 100,000	$ 0	$ 0
Total short-term debt		$ 100,000	$ 0	$ 0
Long-term Debt
5.60% notes due 2012 ¹		$ 0	$ 0	$ 134,535
6.30% notes due 2013 ²		0	140,413	140,382
10.125% notes due 2015 ³		152,317	152,718	153,100
6.50% notes due 2016 ⁴		513,369	515,060	516,701
6.40% notes due 2017 ⁵		349,897	349,888	349,878
7.00% notes due 2018 ⁶		399,751	399,731	399,711
10.375% notes due 2018 ⁷		248,757	248,676	248,599
7.50% notes due 2021 ⁸		600,000	600,000	600,000
7.15% notes due 2037 ⁹		239,557	239,553	239,549
Medium-term notes		6,000	16,000	16,000
Industrial revenue bonds		14,000	14,000	14,000
Other notes		933	964	1,084
Total long-term debt including current maturities		$ 2,524,581	$ 2,677,003	$ 2,813,539
Less current maturities		161	150,602	285,152
Total long-term debt		$ 2,524,420	$ 2,526,401	$ 2,528,387
Estimated fair value of long-term debt		$ 2,756,202	$ 2,766,835	$ 2,636,409
1	Includes decreases for unamortized discounts, as follows: June 30, 2012 — $22 thousand.
2	Includes decreases for unamortized discounts, as follows: December 31, 2012 — $30 thousand and June 30, 2012 —
	$62 thousand.
3	Includes an increase for the unamortized portion of the deferred gain realized upon the August 2011 settlement of
	interest rate swaps, as follows: June 30, 2013 — $2,543 thousand, December 31, 2012 — $2,983 thousand and June
	30, 2012 — $3,402 thousand. Additionally, includes decreases for unamortized discounts, as follows: June 30, 2013 —
	$226 thousand, December 31, 2012 — $265 thousand and June 30, 2012 — $302 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: June 30, 2013 — $13,369 thousand, December 31, 2012 — $15,060 thousand and
	June 30, 2012 — $16,701 thousand. The effective interest rate for these notes is 6.02%.
5	Includes decreases for unamortized discounts, as follows: June 30, 2013 — $103 thousand, December 31, 2012 —
	$112 thousand and June 30, 2012 — $122 thousand. The effective interest rate for these notes is 7.41%.
6	Includes decreases for unamortized discounts, as follows: June 30, 2013 — $249 thousand, December 31, 2012 —
	$269 thousand and June 30, 2012 — $289 thousand. The effective interest rate for these notes is 7.87%.
7	Includes decreases for unamortized discounts, as follows: June 30, 2013 — $1,243 thousand, December 31, 2012 —
	$1,324 thousand and June 30, 2012 — $1,401 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: June 30, 2013 — $631 thousand, December 31, 2012 —
	$635 thousand and June 30, 2012 — $639 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 debt payments during the first six months of 2013 included $10,000,000 in January to retire the 8.70% medium-term note and $140,444,000 in June to retire the 6.30% notes. Scheduled debt payments during 2012 included $134,557,000 in November to retire 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. As of June 30, 2013, our borrowing capacity was $235,507,000 (net of the $100,000,000 draw on our line of credit and $55,575,000 backing for standby letters of credit).

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. Borrowings on our line of credit are shown as short-term due to our intent to repay within twelve months. The $100,000,000 draw on our line of credit as of June 30, 2013 carries an average interest rate of 2.03% which reflects an applicable margin for the LIBOR based borrowing of 1.75%.