Debt and Credit Facilities

Short-term borrowings and current maturities of long-term debt consisted of the following:



In millions	September 30, 2012		December 31, 2011
Debentures with put feature	$	343.6	$	343.6
Exchangeable Senior Notes	—		341.2
6.000% Senior notes due 2013	600.0		—
Current maturities of long-term debt	10.2		12.5
Other short-term borrowings	70.8		66.0
Total	$	1,024.6	$	763.3

Commercial Paper Program

The Company uses borrowings under its commercial paper program for general corporate purposes. The Company had commercial paper of $64.0 million and $0 outstanding at September 30, 2012 and December 31, 2011, respectively.

Debentures with Put Feature

At September 30, 2012 and December 31, 2011, the Company had outstanding $343.6 million of fixed rate debentures which only require early repayment at the option of the holder. These debentures contain a put feature that the holders may exercise on each anniversary of the issuance date. If exercised, the Company is obligated to repay in whole or in part, at the holder’s option, the outstanding principal amount (plus accrued and unpaid interest) of the debentures held by the holder. If these options are not exercised, the final maturity dates would range between 2027 and 2028.

On February 15, 2012, holders of these debentures had the option to exercise the put feature on $37.2 million of the outstanding debentures. No holder chose to exercise the put feature at that date. On October 15, 2012, holders of these debentures had the option to exercise the put feature on $306.4 million of the outstanding debentures. Holders chose to exercise the put feature on $0.6 million of the outstanding debentures at that date, and will be paid in November 2012.

Exchangeable Senior Notes Due 2012

In April 2009, the Company issued $345.0 million of 4.5% Exchangeable Senior Notes (the Notes) through its wholly-owned subsidiary, Ingersoll-Rand Global Holding Company Limited (IR-Global). The Notes were fully and unconditionally guaranteed by each of IR-Ireland, Ingersoll-Rand Company Limited (IR-Limited) and Ingersoll-Rand International Holding Limited (IR-International). Holders had the option to exchange their Notes for the Company's ordinary shares through April 12, 2012.

The Company accounted for the Notes in accordance with GAAP, which required the Company to allocate the proceeds between debt and equity at the issuance date, in a manner that reflected the Company’s nonconvertible debt borrowing rate. At issuance, the Company allocated approximately $305 million of the gross proceeds to debt, with the remaining discount of approximately $40 million (approximately $39 million after allocated fees) recorded within Equity. The Company amortized the discount into Interest expense over the three-year term. As the Notes were exchangeable at the holders’ option through April 12, 2012, the remaining equity portion of the Notes at December 31, 2011 was classified as Temporary equity to reflect the amount that could result in cash settlement at the balance sheet date.

The Company settled all remaining outstanding Notes during the second quarter of 2012. As a result, the Company paid $357.0 million in cash and issued 10.8 million ordinary shares to settle the principal, interest and equity portion of the Notes.

Long-term debt excluding current maturities consisted of the following:



In millions	September 30, 2012		December 31, 2011
6.000% Senior notes due 2013	$	—	$	599.9
9.500% Senior notes due 2014	655.0		655.0
5.50% Senior notes due 2015	199.9		199.8
4.75% Senior notes due 2015	299.7		299.6
6.875% Senior notes due 2018	749.4		749.3
9.00% Debentures due 2021	125.0		125.0
7.20% Debentures due 2013-2025	90.0		97.5
6.48% Debentures due 2025	149.7		149.7
Other loans and notes	2.9		3.5
Total	$	2,271.6	$	2,879.3

Credit Facilities

On May 26, 2010, the Company entered into a 3-year, $1.0 billion revolving credit facility through its wholly-owned subsidiary, IR-Global. On March 15, 2012, this credit facility was refinanced with a 5-year, $1.0 billion revolving credit facility maturing on March 15, 2017. The Company also has a 4-year, $1.0 billion revolving credit facility maturing on May 20, 2015, through its wholly-owned subsidiary, IR-Global.

Each of IR-Ireland, IR-Limited and IR-International has provided an irrevocable and unconditional guarantee for these credit facilities. The total committed revolving credit facilities of $2.0 billion are unused and provide support for the Company's commercial paper program as well as for other general corporate purposes.