Debt

3 Months Ended

Mar. 31, 2012

Debt [Abstract]

Debt [Text Block]

Note5 Debt

The following table presents the components of notes payable at March 31, 2012 and December 31, 2011:

(millions)		March 31, 2012				December 31, 2011
		Principal amount	Effective interest rate			Principal amount	Effective interest rate
U.S. commercial paper	$	32	0.25	%	$	216	0.24	%
Bank borrowings		27				18
Total	$	59			$	234

In the first quarter of 2012, the Company entered into interest rate swaps with notional amounts totaling $1.6 billion, which effectively converted the associated U.S. Dollar Notes from fixed rate to floating rate obligations. The effective interest rates on the associated debt obligations resulting from these derivative instruments as of March 31, 2012 were as follows: 1) seven-year 4.45% U.S. Dollar Notes due 2016 -3.336%; 2) five-year1.875% U.S. Dollar Notes due 2016 -1.214% and3) ten-year4.15% U.S. Dollar Notes due 2019 -2.786%. These derivative instruments were designated as fair value hedges.

In the first quarter of 2012, the Company entered into an unsecured 364-Day Term Loan Agreement (the “New Credit Agreement”) to fund, in part, the acquisition of the Pringles® business from The Procter & Gamble Company.  The New Credit Agreement allows the Company to borrow upto $1 billion to fund, in part, the acquisition and pay related fees and expenses. The loans under the New Credit Agreement will mature and be payable in full 364 days after the date on which the loans are made. The New Credit Agreement contains customary representations,warranties and covenants, including restrictions on indebtedness, liens, sale and leaseback transactions, and a specified interest expense coverage ratio. If an event of default occurs, then, to the extent permitted under the New Credit Agreement, the administrative agent may (i) not earlier than the date on which the acquisition is or is to be consummated, terminate the commitments under the New Credit Agreement and (ii) accelerate any outstanding loans under the New Credit Agreement. There were no loans outstanding under the New Credit Agreement as of March 31, 2012.