Debt

The Company’s outstanding debt is as follows:



(In millions of dollars)	June 30, 2012		December 31, 2011
Short-term:
Current portion of long-term debt	$	259	$	260
Long-term:
Senior notes – 6.25% due 2012 (5.1% effective interest rate)	$	—	$	250
Senior notes – 4.850% due 2013	250		251
Senior notes – 5.875% due 2033	297		296
Senior notes – 5.375% due 2014	326		326
Senior notes – 5.75% due 2015	479		479
Senior notes – 2.30% due 2017	248		—
Senior notes – 9.25% due 2019	398		398
Senior notes – 4.80% due 2021	497		496
Mortgage – 5.70% due 2035	426		431
Other	1		1
	2,922		2,928
Less current portion	259		260
	$	2,663	$	2,668

The senior notes in the table above are publically registered by the Company with no guarantees attached.

During the first quarter of 2012 the Company repaid its 6.25% fixed rate $250 million senior notes that matured. The Company used proceeds from the issuance of 2.3% five-year $250 million senior notes in the first quarter of 2012 to fund the maturing notes.

The Company and certain of its foreign subsidiaries maintain a $1.0 billion multi-currency five-year unsecured revolving credit facility. The interest rate on this facility is based on LIBOR plus a fixed margin which varies with the Company's credit ratings. This facility requires the Company to maintain certain coverage and leverage ratios which are tested quarterly. There were no borrowings outstanding under this facility at June 30, 2012.

Derivative Financial Instruments

In February 2011, the Company entered into two $125 million 3.5-year interest rate swaps to hedge changes in the fair value of the first $250 million of the outstanding 5.375% senior notes due in 2014.

Under the terms of the swaps, the counter-parties will pay the Company a fixed rate of 5.375% and the Company will pay interest at a floating rate of three-month LIBOR plus a fixed spread of 3.726%. The maturity date of the senior notes and the swaps match exactly. The floating rate resets quarterly, with every second reset occurring on the interest payment date of the senior notes. The swaps net settle every six months on the senior note coupon payment dates. The swaps are designated as fair value hedging instruments and are deemed to be perfectly effective in accordance with applicable accounting guidance. The fair value of the swaps at inception was zero and subsequent changes in the fair value of the interest rate swaps are reflected in the carrying value of the interest rate swaps and in the consolidated balance sheet. The carrying value of the debt on the balance sheet was adjusted by an equal amount. The gain or (loss) on the hedged item (fixed rate debt) and the offsetting gain or (loss) on the interest rate swaps for the year-to-date periods ending June 30, 2012 and June 30, 2011 are as follows:



	2012						2011
Income statement classification (In millions of dollars)	Gain on Swaps		Loss on Notes		Net Income Effect		Gain on Swaps		Loss on Notes			Net Income Effect
Other Operating Expenses	$	—	$	—	$	—	$	4.7	$	(4.7	)	$	—

The amounts earned and owed under the swap agreements are accrued each period and are reported in interest expense. There was no ineffectiveness recognized in the periods presented.