Debt

6 Months Ended

Jun. 30, 2011

Debt [Abstract]

Debt [Text Block]

5. Debt

Lines of Credit

We maintain a credit facility with a consortium of banks, providing borrowing capacity of up to $2.0 billion. This facility expires on December 9, 2013. We have the ability to classify borrowings under this facility as long-term. Our credit facility provides support for up to $1.5 billion of commercial paper issuances, as well as back-up liquidity in the event that any of our convertible notes are put back to us. At June 30, 2011, we had no commercial paper issuances or borrowings outstanding under this facility.

At June 30, 2011 and December 31, 2010, we had various uncommitted lines of credit aggregating $744.7 million and $610.4 million, respectively.

Our available lines of credit, none of which were used at June 30, 2011 and December 31, 2010 were (dollars in millions):

	2011		2010
Credit facility	$	2,000.0	$	2,000.0
Uncommitted lines of credit		744.7		610.4
Available and unused lines of credit	$	2,744.7	$	2,610.4

Short-Term Borrowings

Short-term borrowings of $63.9 million at June 30, 2011 are primarily comprised of bank overdrafts and credit lines of our international subsidiaries. The bank overdrafts and credit lines are treated as unsecured loans pursuant to the bank agreements supporting the facilities.

Long-Term Notes Payable

Long-term notes payable at June 30, 2011 and December 31, 2010 were (dollars in millions):

	2011			2010
5.90% Senior Notes due April 15, 2016	$	1,000.0		$	1,000.0
6.25% Senior Notes due July 15, 2019		500.0			500.0
4.45% Senior Notes due August 15, 2020		1,000.0			1,000.0
Other notes and loans		2.1			1.5
		2,502.1			2,501.5
Unamortized discount on Senior Notes		(8.1	)		(8.7	)
Fair value hedge adjustment on Senior Notes due 2016		(4.2	)		(26.3	)
		2,489.8			2,466.5
Less current portion		1.8			1.4
Long-term notes payable	$	2,488.0		$	2,465.1

In 2010, we entered into a series of interest rate swap agreements to hedge the risk of changes in fair value of the $1 billion aggregate principal amount of our 5.90% Senior Notes due April 15, 2016 ("2016 Notes") attributable to changes in the benchmark interest rate. Under the terms of these agreements, we will receive fixed interest rate payments and will make variable interest rate payments on the total principal amount of the 2016 Notes. These agreements effectively convert the 2016 Notes from fixed rate debt to floating rate debt from the inception of the swaps through the maturity of the 2016 Notes. The swaps qualify as a hedge for accounting purposes at inception and at June 30, 2011 and are designated as a fair value hedge on the 2016 Notes. The variable interest rate we pay is based on the one-month and three-month U.S. LIBOR rate, flat. The fixed rate we receive is 1.766%. The swaps mature on April 15, 2016, the same day as the 2016 Notes. The swaps are recorded in our balance sheet at fair value and the change in the fair value of the swaps and the change in the fair value of the 2016 Notes (the hedged item) are recorded in earnings as an adjustment to interest expense. We will continue to evaluate these arrangements for hedge accounting treatment. At June 30, 2011 and December 31, 2010, we recorded a liability of $6.5 million and $24.2 million, respectively, representing the fair value of the swaps, and we recorded a decrease in the carrying value of the 2016 Notes of $4.2 million and $26.3 million, respectively, reflecting the change in fair value of the 2016 Notes from the inception of the fair value hedge. The net change in fair value of the swap and the carrying value of the 2016 Notes and any hedge ineffectiveness was not material to our results of operations.

Convertible Debt

Convertible debt at June 30, 2011 and December 31, 2010 was (dollars in millions):

	2011		2010
Convertible Notes - due February 7, 2031	$	—	$	0.1
Convertible Notes - due July 31, 2032		252.7		252.7
Convertible Notes - due June 15, 2033		0.1		0.1
Convertible Notes - due July 1, 2038		406.6		406.6
		659.4		659.5
Less current portion		—		—
Convertible debt	$	659.4	$	659.5

The next date on which holders of our 2032 Notes can put their notes back to us for cash is August 1, 2011. The next date on which holders of our 2038 Notes can put their notes back to us for cash is June 17, 2013.