Financing Arrangements

9 Months Ended

Sep. 30, 2011

Note 11. Financing Arrangements

In May 2011, the Company entered into a new five-year unsecured committed syndicated revolving credit facility, which permits borrowings up to a maximum of $700 million. In connection with entering into the new facility, the Company terminated its $500 million unsecured committed syndicated revolving credit facility that otherwise would have expired in May 2012. The new credit facility expires in May 2016. Interest rates under the new facility vary depending upon:

	•		The amount borrowed;

	•		The Company’s public debt rating by Standard & Poor’s, Moody’s and Fitch; and

•

At the Company’s option, rates tied to the agent bank’s prime rate or, for U.S. Dollar and Great Britain Pounds Sterling borrowings, the London Interbank Offered Rate and for Euro borrowings, the Euro Interbank Offered Rate.

At September 30, 2011, there were $29.8 million in borrowings and $37.7 million in letters of credit outstanding under the facility. At December 31, 2010, there were no borrowings and $62.5 million in letters of credit outstanding under the facility. In order to be eligible to borrow under the facility, the Company must be in compliance with a maximum leverage ratio covenant and other standard covenants. The Company is currently in compliance with all covenants. At September 30, 2011, the Company had borrowing capacity under this facility of $632.5 million, after reductions for borrowings and letters of credit outstanding under the facility.

At September 30, 2011, the Company also maintained $75 million of uncommitted U.S. working capital facilities and $155.3 million of uncommitted and committed foreign working capital facilities with various banks to meet short-term borrowing requirements. At September 30, 2011 and December 31, 2010, there were $13.3 million and $4.1 million, respectively, in borrowings and $26.8 million in letters of credit and bank guarantees outstanding under these facilities as of September 30, 2011. These credit facilities are provided by a small number of commercial banks that also provide the Company with committed credit through the syndicated revolving credit facility described above and with various cash management, trust and other services.

At September 30, 2011, the Company had letters of credit and bank guarantees of $107.5 million, inclusive of letters of credit outstanding under the Company’s syndicated revolving credit facility, uncommitted U.S. working capital facilities and uncommitted and committed foreign working capital facilities, as discussed above.

Long-term Debt

Long-term debt and capital lease obligations, excluding current maturities, consisted of:


	September 30,		December 31,
	2011		2010
	(Dollars in millions)
Medium-term notes payable (interest rates from 6.8% to 8.7%)	$	398.9	$	398.9
6.29% senior notes, maturing in 2016		294.4		295.0
6.125% senior notes, maturing in 2019		298.3		298.1
4.875% senior notes, maturing in 2020		299.4		299.4
3.6% senior notes, maturing in 2021		598.9		598.8
6.80% senior notes, maturing in 2036		234.3		233.7
7.0% senior notes, maturing in 2038		199.2		199.2
Other debt, maturing through 2020 (interest rates from 0.2% to 2.6%)		46.3		16.5

		2,369.7		2,339.6
Capital lease obligations		22.0		13.2

Total	$	2,391.7	$	2,352.8

Lease Commitments

The Company leases certain of its office and manufacturing facilities, machinery and equipment and corporate aircraft under various committed lease arrangements provided by financial institutions. Future minimum lease payments under operating leases were $225.1 million at September 30, 2011.