Debt

6 Months Ended

Jun. 30, 2011

Debt

Debt

Note 10.  Debt

Debt consisted of the following:

(in thousands)	JUNE 30, 2011			DECEMBER 31, 2010
Senior notes
6.9 percent senior notes due June 2013	$	186,192		$	186,192
5.4 percent senior notes due January 2015	131,481			158,981
8.4 percent senior notes due May 2017	230,000			230,000
6.6 percent senior notes due May 2020	300,000			300,000
Total senior notes	847,673			875,173
Debt discount	(3,961		)	(4,305		)
Senior notes, net	843,712			870,868
Secured notes payable	8,789			9,010
Total debt	$	852,501		$	879,878

At June 30, 2011, the Company had outstanding (a) $186.2 million of 6.9 percent senior notes due June 2013; (b) $131.5 million of 5.4 percent senior notes due January 2015; (c) $230.0 million of 8.4 percent senior notes due May 2017; and (d) $300.0 million of 6.6 percent senior notes due May 2020. Each of the senior notes pays interest semiannually and may be redeemed at a stated redemption price, at the option of the Company, in whole or in part, at any time.

During the second quarter of 2011, the Company paid $28.2 million to repurchase $27.5 million of its 5.4 percent senior notes due 2015, resulting in a loss of $857,000. The loss resulting from the debt repurchase was included in “Loss related to early retirement of debt, net” within the Consolidated Statements of Earnings.

During the second quarter of 2010, the Company redeemed and repurchased, pursuant to a tender offer and redemption, $255.7 million of its senior notes due 2012, 2013 and 2015 for $273.9 million in cash. It recognized a charge of $19.5 million resulting from the tender offer and redemption. The Company repurchased an additional $19.0 million of its senior notes, for which it paid $18.4 million in cash in the open market, resulting in a gain of $433,000. The net loss was included in “Loss related to early retirement of debt, net” within the Consolidated Statements of Earnings.

To provide letters of credit required in the ordinary course of its business, the Company has various secured letter of credit agreements that require it to maintain restricted cash deposits for outstanding letters of credit. Outstanding letters of credit totaled $71.1 million and $74.3 million under these agreements at June 30, 2011 and December 31, 2010, respectively.

To finance its land purchases, the Company may also use seller-financed nonrecourse secured notes payable. At June 30, 2011 and December 31, 2010, outstanding seller-financed nonrecourse secured notes payable totaled $8.8 million and $9.0 million, respectively.

Senior notes and indenture agreements are subject to certain covenants that include, among other things, restrictions on additional secured debt and the sale of assets. The Company was in compliance with these covenants at June 30, 2011.