Debt and Interest

3 Months Ended

Mar. 31, 2012

Debt and Interest

Debt and Interest

5.Debt and Interest

	March 31			December 31
(millions)	2012			2011
	(unaudited)
Short-term debt
Commercial paper	$	1,209.7		$	916.1
Notes payable	130.3			100.3
Long-term debt, current maturities	6.9			6.6
Total	$	1,346.9		$	1,023.0
Long-term debt
Description / 2012 Principal Amount
Series A senior euro notes (125 million euro)	$	166.5		$	168.1
Series B senior euro notes (175 million euro)	233.2			235.3
Senior notes ($250 million)	249.2			249.1
Series A private placement senior notes ($250 million)	250.0			250.0
Series B private placement senior notes ($250 million)	250.0			250.0
Three year 2011 senior notes ($500 million)	499.7			499.7
Five year 2011 senior notes ($1.25 billion)	1,247.7			1,247.6
Ten year 2011 senior notes ($1.25 billion)	1,249.2			1,249.2
Thirty year 2011 senior notes ($750 million)	742.4			742.3
Nalco senior notes ($0)	—			838.7
Nalco senior euro notes ($0)	—			300.7
Nalco senior notes ($0)	—			558.5
Capital lease obligations	17.4			18.3
Other	12.6			12.3
Total
	4,917.9			6,619.8
Long-term debt, current maturities	(6.9		)	(6.6		)
Total	$	4,911.0		$	6,613.2

In January 2012, the company redeemed $1.7 billion of Nalco senior notes, which were assumed in 2011 as part of the merger. As part of the redemption, the company recognized an $18.2 million loss for debt extinguishment. As of December 31, 2011, the Nalco senior notes were fully and unconditionally guaranteed by certain Nalco subsidiaries. In conjunction with the redemption in January 2012, all guarantees in place as of December 31, 2011 were extinguished.

In April 2012, the company reduced its 364 day credit facility from $2.0 billion to $1.0 billion.

In February 2011, the company repaid its $150 million 6.875% senior notes when they became due.

Interest expense and interest income recognized during the first quarter ended 2012 and 2011 were as follows:

	First Quarter Ended
	March 31
(millions)	2012			2011
Interest expense	$	88.7		$	15.0
Interest income	(2.6		)	(1.5		)
Interest expense, net	$	86.1		$	13.5

The increase in interest expense was driven primarily by debt issued to fund the cash portion of the Nalco merger consideration, the repayment of Nalco debt and share repurchases. First quarter 2012 interest expense also include an $18.2 million loss on extinguishment of Nalco debt.