Debt

9 Months Ended

Sep. 30, 2011

Debt

Debt

Note 10.  Debt

Debt consisted of the following:

	SEPTEMBER 30,			DECEMBER 31,
(in thousands)	2011			2010
Senior notes
6.9 percent senior notes due June 2013	$	173,887		$	186,192
5.4 percent senior notes due January 2015	126,481			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	830,368			875,173
Debt discount	(3,800		)	(4,305		)
Senior notes, net	826,568			870,868
Secured notes payable1	5,258			8,921
Total debt	$	831,826		$	879,789

1 Excludes secured notes payable of $89,000 associated with discontinued operations at September 30, 2011 and December 31, 2010.

At September 30, 2011, the Company had outstanding (a) $173.9 million of 6.9 percent senior notes due June 2013; (b) $126.5 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, in whole or in part, at the option of the Company at any time.

During the third quarter of 2011, the Company paid $17.7 million to repurchase $17.3 million of its senior notes due 2013 and 2015, resulting in a loss of $477,000. For the nine months ended September 30, 2011, the Company paid $46.0 million to repurchase $44.8 million of its senior notes due 2013 and 2015, resulting in a loss of $1.3 million. The losses resulting from these debt repurchases were 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 $67.0 million and $74.3 million under these agreements at September 30, 2011 and December 31, 2010, respectively.

To finance its land purchases, the Company may also use seller-financed nonrecourse secured notes payable. At September 30, 2011 and December 31, 2010, outstanding seller-financed nonrecourse secured notes payable totaled $5.3 million and $8.9 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 September 30, 2011.