Debt Instruments (Tables)

12 Months Ended

Jun. 30, 2012

Composition Of The Corporation's Long-Term Debt, Which Includes Capital Lease Obligations

The composition of the company’s long-term debt, which includes capital lease obligations, is summarized in the following table:

(in millions)	Maturity Date		2012			2011
Senior debt
3.875% notes		2013		–			500
10% zero coupon notes ($19 million face value)		2014		16			15
10% – 14.25% zero coupon notes ($105 million face value)		2015		82			72
2.75% Notes		2016		400			400
4.1% Notes		2021		278			400
6.125% notes		2033		152			500
Total senior debt				928			1,887
Obligations under capital lease				2			1
Other debt				15			16
Total debt				945			1,904
Unamortized discounts				(1	)		(5	)
Hedged debt adjustment to fair value				–			12
Total long-term debt				944			1,911
Less current portion				(5	)		(1	)
			$	939		$	1,910

Selected Data On The Corporation's Short-Term Obligations

The financial covenants also include a requirement to maintain a leverage ratio of not more than 3.50 to 1.00. The leverage ratio is based on the ratio of consolidated total indebtedness to an adjusted consolidated EBITDA. For the 12 months ended June 30, 2012, the leverage ratio was 2.3 to 1.0.

Selected data on the company’s short-term obligations follow:

In millions	2012		2011		2010
Maximum month-end borrowings	$	335	$	503	$	95
Average borrowings during the year		97		242		27
Year-end borrowings		–		198		22
Weighted average interest rate during the year		0.34%		0.31%		0.26%
Weighted average interest rate at year-end		–		0.30		0.32