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Debt

6 Months Ended

Jun. 30, 2012

3. Debt

The following table summarizes the long-term debt of the Company:

	June 30,		December 31,		June 30,
	2012		2011		2011
Secured Credit Agreement:
Revolving Credit Facility:
Revolving Loans	$	—	$	—	$	125
Term Loans:
Term Loan A (170 million AUD)	173		173		183
Term Loan B	600		600		600
Term Loan C (116 million CAD)	113		114		120
Term Loan D (€141 million)	177		182		205
Senior Notes:
3.00%, Exchangeable, due 2015	633		624		615
7.375%, due 2016	589		588		586
6.875%, due 2017 (€300 million)	377		388		435
6.75%, due 2020 (€500 million)	628		647		725
Payable to O-I Inc.	250		250		250
Other	128		137		161
Total long-term debt	3,668		3,703		4,005
Less amounts due within one year	101		76		36
Long-term debt	$	3,567	$	3,627	$	3,969

On May 19, 2011, the Company’s subsidiary borrowers entered into the Secured Credit Agreement (the “Agreement”). At June 30, 2012, the Agreement included a $900 million revolving credit facility, a 170 million Australian dollar term loan, a $600 million term loan, a 116 million Canadian dollar term loan, and a €141 million term loan, each of which has a final maturity date of May 19, 2016. At June 30, 2012, the Company’s subsidiary borrowers had unused credit of $807 million available under the Agreement.

The weighted average interest rate on borrowings outstanding under the Agreement at June 30, 2012 was 2.74%.

The Company has a €280 million European accounts receivable securitization program, which extends through September 2016, subject to annual renewal of backup credit lines. Information related to the Company’s accounts receivable securitization program is as follows:

	June 30,			December 31,			June 30,
	2012			2011			2011

Balance (included in short-term loans)	$	302		$	281		$	312

Weighted average interest rate	1.42		%	2.41		%	2.69		%

The carrying amounts reported for the accounts receivable securitization programs, and certain long-term debt obligations subject to frequently redetermined interest rates, approximate fair value. Fair values for the Company’s significant fixed rate debt obligations are based on published market quotations, and are classified as Level 1 in the fair value hierarchy.

Fair values at June 30, 2012 of the Company’s significant fixed rate debt obligations are as follows:

			Indicated
	Principal		Market	Fair
	Amount		Price	Value

Senior Notes:
3.00%, Exchangeable, due 2015	$	690	95.76	$	661
7.375%, due 2016	600		111.88	671
6.875%, due 2017 (€300 million)	377		103.63	391
6.75%, due 2020 (€500 million)	628		106.34	668

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

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