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Debt
6 Months Ended
Jun. 30, 2011
Debt  
Debt

14. Debt

The Company's debt consists of the following:

 

The fair values of the senior notes and debentures, which were based upon the interest rates available to the Company for borrowings with similar terms and maturities, were determined to be Level 2 under the fair value hierarchy. The fair value of the Company's debt was greater than its book value by approximately $78.8 million and $259.3 million at June 30, 2011 and December 31, 2010, respectively.

On June 1, 2011, the Company issued $600.0 million of 7.25% senior notes due May 15, 2018. Interest on the notes is payable semi-annually on May 15 and November 15 of each year, commencing on November 15, 2011. The net proceeds from the offering were used to repurchase $216.2 million of the 11.25% senior notes due February 1, 2019, $100 million of the 6.125% senior notes due January 15, 2017 and $100 million of the 5.50% senior notes due May 15, 2015. The repurchases resulted in a pre-tax loss on debt extinguishment of $68.6 million. The remaining net proceeds were used for general corporate purposes and to repay outstanding borrowings under the Company's unsecured and committed revolving credit agreement (the "Credit Agreement").

Interest income was $3.6 million and $6.2 million for the three and six months ended June 30, 2011, respectively. Interest income was $1.7 million and $3.6 million for the three and six months ended June 30, 2010, respectively.