Note 7 – DEBT

The company’s debt was comprised of the following:


(In Millions of Dollars)	June 30, 2011		December 31, 2010
5.5% notes, due 2014, net of original issue discount of $1.2 and $1.3 at June 30, 2011 and December 31, 2010, respectively, and fair value adjustments for unrealized gains on derivative instruments of $11.1 and $9.3 at June 30, 2011 and December 31, 2010, respectively	$	459.9	$	458.0
8.875% notes, due 2019, net of original issue discount of $3.1 and $3.3 at June 30, 2011 and December 31, 2010, respectively		496.9		496.7
7.25% debentures, due 2025		100.0		100.0
6.5% debentures, due 2034, net of original issue discount of $4.5 at both June 30, 2011 and December 31, 2010		295.5		295.5
Other		4.8		1.8

		1,357.1		1,352.0
Less: Current portion of long-term debt		0.6		0.4

Total long-term debt	$	1,356.5	$	1,351.6

The U.S. and euro bank credit agreements contain customary affirmative covenants including, among others, compliance with laws, payment of taxes, maintenance of insurance, conduct of business, keeping of books and records, maintenance of properties and ensuring the credit facilities receive the same rights and privileges as any future senior unsecured debt. The agreements also contain customary negative covenants including, among others, restrictions on: liens and encumbrances, sale of assets and affiliate transactions. Additionally, the company is required to comply with financial ratios of debt to consolidated earnings before interest, income taxes, depreciation and amortization, extraordinary, unusual or non-recurring non-cash gains or losses, including the sale of property and equipment and goodwill impairments, and non-cash gains or losses from less than wholly owned subsidiaries and investments (Consolidated EBITDA), as defined in the credit agreements, and Consolidated EBITDA to interest expense. At June 30, 2011, the credit agreements required that the ratio of debt to Consolidated EBITDA be less than 3.5:1 and the ratio of Consolidated EBITDA to interest expense be greater than 3.5:1. At June 30, 2011, the company maintained a ratio of debt to Consolidated EBITDA of 1.1:1 and a ratio of Consolidated EBITDA to interest expense of 12.5:1.

The bank credit agreements also contain customary events of default including, among others, failure to make payment when due, materially incorrect representations and warranties, breach of covenants, events of bankruptcy, the occurrence of one or more unstayed judgments in excess of $25.0 million (under the euro bank credit agreement) or $50.0 million (under the U.S. bank credit agreement) that is not covered by an acceptable policy of insurance, a party obtaining a beneficial ownership in excess of 20% of the company’s voting stock, or the incurrence of $25.0 million of liabilities related to violations of employee benefit plan regulations or the withdrawal or termination of a multiemployer benefit plan. On July 18, 2011, the bank credit agreements were amended to waive the event of default for a change in beneficial ownership solely with respect to the anticipated merger with Berkshire Hathaway. At June 30, 2011, the company had no borrowings outstanding under its bank credit agreements, was in compliance with all of its covenants and had not committed any acts of default.

The estimated fair value of the company’s debt instruments at June 30, 2011, and December 31, 2010, was $1,616.3 million and $1,549.6 million, respectively. The fair value of the company’s debt instruments was estimated using prevailing market interest rates on long-term debt with similar creditworthiness, terms and maturities.