Financing Arrangements

9 Months Ended

Sep. 30, 2013

The Company has a secured term loan credit facility ("secured debt"). Under the terms of the secured debt, the Company made interest only payments through February 2013. Subsequent to the interest only payments, the note will amortize with principal and interest payments through the remaining term of the loan. Additionally, the Company must also make an additional final payment equal to 6% of the total amount borrowed which is due at maturity and is being accreted over the life of the loan.

In March 2013, the Company prepaid $7 million of the secured term loan credit facility. Additionally, the Company paid a prepayment fee of 1% of the prepayment amount, or $0.1 million and a prorated final-payment fee of 6% of the final payment or $0.4 million.

The carrying values and the fixed contractual coupon rates of our financing arrangements are as follows (dollars in millions):



	September 30, 2013		December 31, 2012
Current portion notes payable, 8.64%, due August 1, 2014	$	9,025	$	10,792
Current portion notes payable, 8.9012%, due August 1, 2014	3,350		4,043
Total current portion of notes payable	$	12,375	$	14,835
Long-term portion notes payable, 8.64%, due August 1, 2014	$	—	$	9,837
Long-term portion notes payable, 8.9012%, due August 1, 2014	—		3,606
Total long-term portion of notes payable	$	—	$	13,443

- 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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