Bank Financing and Debt

9 Months Ended

Sep. 30, 2013

Bank Financing And Debt Disclosure [Abstract]

Bank Financing and Debt

7) BANK FINANCING AND DEBT

The following table sets forth the Company's debt.

		At		At
		September 30, 2013		December 31, 2012
Commercial paper		$	341	$	—
Senior debt (1.95% – 8.875% due 2014 – 2042) (a)			5,861		5,863
Obligations under capital leases			117		72
Total debt			6,319		5,935
	Less discontinued operations debt (b)		13		13
Total debt from continuing operations			6,306		5,922
	Less commercial paper		341		—
	Less current portion of long-term debt		21		18
Total long-term debt from continuing operations,
	net of current portion	$	5,944	$	5,904

(a) At September 30, 2013 and December 31, 2012, the senior debt balances included (i) a net unamortized discount of $14 million and $16 million, respectively, and (ii) an increase in the carrying value of the debt relating to previously settled fair value hedges of $19 million and $23 million, respectively. The face value of the Company's senior debt was $5.86 billion at bothSeptember 30, 2013 and December 31, 2012.

(b) Included in noncurrent “Liabilities of discontinued operations” on the Consolidated Balance Sheets.

The senior debt of CBS Corp. is fully and unconditionally guaranteed by its wholly owned subsidiary, CBS Operations Inc. Senior debt in the amount of $52 million of the Company's wholly owned subsidiary, CBS Broadcasting Inc., has no guarantor.

At September 30, 2013, the Company classified $99 million of notes maturing in June 2014 as long-term debt on the Consolidated Balance Sheet, reflecting its intent and ability to refinance this debt on a long-term basis.

For the nine months ended September 30, 2012, debt issuances and redemptions were as follows:

Debt Issuances

June 2012, $400 million 1.95% senior notes due 2017

June 2012, $500 million 4.85% senior notes due 2042

February 2012, $700 million 3.375% senior notes due 2022

Debt Redemptions

$152 million 8.625% debentures due 2012

$338 million 5.625% senior notes due 2012

$400 million 8.20% senior notes due 2014

$700 million 6.75% senior notes due 2056

Debt redemptions in 2012 resulted in a pre-tax loss on early extinguishment of debt of $57 million for the third quarter of 2012 and a pre-tax net loss on early extinguishment of debt of $32 million for the nine months ended September 30, 2012.

Commercial Paper

At September 30, 2013, the Company had $341 million of commercial paper borrowings outstanding under its $2.0 billion commercial paper program. Outstanding commercial paper borrowings have a weighted average interest rate of approximately 0.3% and maturities of less than thirty days.

Credit Facility

During the first quarter of 2013, the Company amended and extended its $2.0 billion revolving credit facility (the “Credit Facility”) to March 15, 2018. The amended facility provides for lower borrowing rates and fees, as well as more favorable covenant requirements. The Credit Facility requires the Company to maintain a maximum Consolidated Leverage Ratio of 4.5x at the end of each quarter as further described in the Credit Facility. At September 30, 2013, the Company's Consolidated Leverage ratio was approximately 1.6x.

The Consolidated Leverage Ratio reflects the ratio of the Company's indebtedness from continuing operations, adjusted to exclude certain capital lease obligations, at the end of a quarter, to the Company's Consolidated EBITDA for the trailing four consecutive quarters. Consolidated EBITDA is defined in the Credit Facility as operating income plus interest income and before depreciation, amortization and certain other noncash items.

The Credit Facility is used for general corporate purposes, including support of the Company's commercial paper program. At September 30, 2013, the remaining availability under the Credit Facility, net of outstanding letters of credit, was $1.99billion.