Long-term Debt and Capital Lease Obligation

12 Months Ended

Dec. 31, 2011

Long-term Debt and Capital Lease Obligation

This table summarizes the principal amounts of our long-term debt excluding unamortized discounts:

						Book value				Principal amount
(In millions)						December 31,		December 31,		December 31,		December 31,
Interest rate			Year of issue			2011		2010		2011		2010

	6.900	%		1998	Senior debentures, due 2028	$	28	$	28	$	28	$	28
	6.920	%		2005	Senior debentures, due 2028		391		391		391		391
	6.125	%		2004	Senior notes, due 2034		371		371		374		374
					Total	$	790	$	790	$	793	$	793

The fair value of our senior debt approximated $814 million at year-end 2011 compared with $783 million at year-end 2010. Fair value for 2011 and 2010 was determined under ASC 820 based on market pricing of these or similar debt instruments that are actively trading. Fair value can vary with macroeconomic concerns. Regardless of the fluctuations in fair value, the outstanding principal amount of our long-term debt remained unchanged from year-end 2010. None of the notes are encumbered by rating triggers.

Below are the expected capital lease obligations, totaling $31 million, excluding an insignificant amount of interest, that we expect to pay over the next five years:

	Years ended December 31,
(In millions)	2012		2013		2014		2015		2016
Capital lease obligations	$	14	$	11	$	4	$	2	$	0