Financing Agreements

3 Months Ended

Mar. 31, 2013

Debt Disclosure [Abstract]

Financing Agreements

Financing Agreements

Senior notes — At March 31, 2013, the aggregate principal amount of our senior notes outstanding was $750. Our senior notes include $400 at a fixed interest rate of 6.50% maturing in 2019 and $350 at a fixed rate of 6.75% maturing in 2021. The weighted-average interest rate on the senior notes was 6.62%. Interest on the notes is payable semi-annually on February 15 and August 15.

Other indebtedness — Other indebtedness increased from $109 at December 31, 2012 to $131 at March 31, 2013 primarily due to increased long-term borrowings in advance of scheduled long-term debt repayments at international locations.

Revolving facility — We maintain a revolving credit facility with lenders permitting aggregate borrowings of up to $500. The revolving facility bears interest at a floating rate based on, at our option, the base rate or London Interbank Offered Rate (LIBOR) (each as described in the revolving facility agreement) plus a margin based on the undrawn amounts available under the revolving facility. Commitment fees are applied based on the average daily unused portion of the available amounts under the revolving facility. If the average daily unused portion of the revolving facility is less than 50%, the applicable fee will be 0.50% per annum. If the average daily unused portion of the revolving facility is equal to or greater than 50%, the applicable fee will be 0.625% per annum. Up to $300 of the revolving facility may be applied to letters of credit, which reduces availability. We pay a fee for issued and undrawn letters of credit in an amount per annum equal to the applicable LIBOR margin based on quarterly average availability under the revolving facility and a per annum fronting fee of 0.25%, payable quarterly. There were no borrowings under the revolving facility at March 31, 2013 but we had utilized $71 for letters of credit. Based on our borrowing base collateral of $366, we had potential availability at March 31, 2013 under the revolving facility of $295 after deducting the outstanding letters of credit. The revolving facility expires in February 2016.

European receivables loan facility — Certain of our European subsidiaries participate in an accounts receivable backed credit facility (European facility) which permits borrowings of up to €75 ($96 at the March 31, 2013 exchange rate). Availability through the European facility is subject to the existence of adequate levels of supporting accounts receivable. Advances from the European facility bear interest based on the LIBOR applicable to the currency in which each advance is denominated or an Alternate Base Rate (as defined). We pay a fee on the unused amount of the European facility, in addition to other customary fees. At March 31, 2013, we had no borrowings under the European facility. As of March 31, 2013, we had potential availability of $96 based on the effective borrowing base. The European facility expires in March 2016.

Debt covenants — At March 31, 2013, we were in compliance with the covenants of our financing agreements. Under the revolving facility and the senior notes, we are required to comply with certain incurrence-based covenants customary for facilities of these types.