NOTE 6: DEBT

Debt at December 31 is summarized as follows:



in thousands	2013	2012
Long-term Debt
6.30% notes due 2013 1	$ 0	$ 140,413
10.125% notes due 2015 2	151,897	152,718
6.50% notes due 2016 3	511,627	515,060
6.40% notes due 2017 4	349,907	349,888
7.00% notes due 2018 5	399,772	399,731
10.375% notes due 2018 6	248,843	248,676
7.50% notes due 2021 7	600,000	600,000
7.15% notes due 2037 8	239,561	239,553
Medium-term notes	6,000	16,000
Industrial revenue bond	14,000	14,000
Other notes	806	964
Total long-term debt including current maturities	$ 2,522,413	$ 2,677,003
Less current maturities	170	150,602
Total long-term debt	$ 2,522,243	$ 2,526,401
Estimated fair value of long-term debt	$ 2,820,399	$ 2,766,835


1	Includes decreases for unamortized discounts, as follows: December 31, 2012 — $30 thousand.
2	Includes an increase for the unamortized portion of the deferred gain realized upon the August 2011 settlement of interest rate swaps, as follows: December 31, 2013 — $2,082 thousand and December 31, 2012 — $2,983 thousand. Additionally, includes decreases for unamortized discounts as follows: December 31, 2013 — $185 thousand and December 31, 2012 — $265 thousand. The effective interest rate for these notes is 9.59%.
3	Includes an increase for the unamortized portion of the deferred gain realized upon the August 2011 settlement of interest rate swaps, as follows: December 31, 2013 — $11,627 thousand and December 31, 2012 — $15,060 thousand. The effective interest rate for these notes is 6.02%.
4	Includes decreases for unamortized discounts, as follows: December 31, 2013 — $93 thousand and December 31, 2012 — $112 thousand. The effective interest rate for these notes is 7.41%.
5	Includes decreases for unamortized discounts, as follows: December 31, 2013 — $228 thousand and December 31, 2012 — $269 thousand. The effective interest rate for these notes is 7.87%.
6	Includes decreases for unamortized discounts, as follows: December 31, 2013 — $1,157 thousand and December 31, 2012 — $1,324 thousand. The effective interest rate for these notes is 10.62%.
7	The effective interest rate for these notes is 7.75%.
8	Includes decreases for unamortized discounts, as follows: December 31, 2013 — $627 thousand and December 31, 2012 — $635 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, deferred gains and debt issuance costs 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 1, caption Fair Value Measurements) 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.

Scheduled debt payments during 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 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. As of December 31, 2013, our available borrowing capacity was $382,588,000 (net of the $53,393,000 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 classified as short-term due to our intent to repay within twelve months. As of December 31, 2013, the applicable margin for LIBOR based borrowing was 1.75%.

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 floating-rate term loan due in 2015

fund the purchase through a tender offer of $165,443,000 of our outstanding 5.60% notes due in 2012 and $109,556,000 of our outstanding 6.30% notes due in 2013

repay $275,000,000 outstanding under our revolving credit facility, and

for general corporate purposes

The terminated $450,000,000 floating-rate term loan due in 2015 was established in July 2010 in order to repay the $100,000,000 outstanding balance of our floating-rate term loan due in 2011 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 this floating-rate term loan.

The June 2011 purchases of the 5.60% and 6.30% notes cost $294,533,000, including 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 2011 upon the partial termination of the notes. The combined expense of $24,245,000 was recognized as a component of interest expense for the year 2011.

In February 2009, we issued $400,000,000 of long-term notes in two related series, as follows: $150,000,000 of 10.125% notes due in 2015 and $250,000,000 of 10.375% notes due in 2018. These notes were issued principally to repay borrowings outstanding under our short- and long-term debt obligations.

The 2008 and 2007 debt issuances described below relate primarily to funding the November 2007 acquisition of Florida Rock and replaced a portion of the short-term borrowings we incurred to initially fund the cash portion of the acquisition.

In June 2008 we issued $650,000,000 of long-term notes in two series, as follows: $250,000,000 of 6.30% notes due in 2013 and $400,000,000 of 7.00% notes due in 2018. The 6.30% notes due in 2013 were partially terminated in June 2011 with a tender offer (as described above) and the remaining $140,444,000 paid in June 2013 as scheduled.

In December 2007, we issued $1,225,000,000 of long-term notes in four series, as follows: $325,000,000 of floating-rate notes due in 2010, $300,000,000 of 5.60% notes due in 2012, $350,000,000 of 6.40% notes due in 2017 and $250,000,000 of 7.15% notes due in 2037. The floating-rate notes were paid in December 2010 as scheduled. The 5.60% notes due in 2012 were partially terminated in June 2011 with a tender offer (as described above) and the remaining $134,557,000 paid in November 2012 as scheduled.

During 1991, we issued $81,000,000 of medium-term notes ranging in maturity from 3 to 30 years, with interest rates from 7.59% to 8.85%. The $6,000,000 in medium-term notes outstanding as of December 31, 2013 has a weighted-average maturity of 7.7 years with a weighted-average interest rate of 8.88%.

The industrial revenue bond was assumed in November 2007 with the acquisition of Florida Rock. This variable-rate
tax-exempt bond matures in November 2022 and is backed by a standby letter of credit.

Other notes of $806,000 as of December 31, 2013 were issued at various times to acquire land or businesses or were assumed in business acquisitions.

The total scheduled (principal and interest) debt payments, excluding draws, if any, on the line of credit, for the five years subsequent to December 31, 2013 are as follows:



in thousands	Total	Principal	Interest
Debt Payments (excluding the line of credit)
2014	$ 187,010	$ 170	$ 186,840
2015	336,981	150,137	186,844
2016	671,779	500,130	171,649
2017	489,279	350,138	139,141
2018	752,754	650,022	102,732

In January 2014, we initiated a tender offer to purchase $500,000,000 of outstanding debt as described in Note 21.

The line of credit contains limitations on liens, indebtedness, guarantees, acquisitions and divestitures, and certain restricted payments. Restricted payments include dividends to our shareholders. There is no dollar limit or percent of retained earnings limit on restricted payments. However, we must have cash and borrowing capacity, after the restricted payment is made, of at least $150,000,000 (or $105,000,000 if our fixed charge coverage ratio is above 1.00:1.00). The minimum fixed charge coverage ratio is applicable only if usage exceeds 90% of the lesser of $500,000,000 and the borrowing capacity derived from the sum of eligible accounts receivable and inventory.