Debt

On September 10, 2012, the company completed an offering of $750.0 million of 3.00% fixed rate notes due September 2022. The company intends to use the net proceeds from the offering, together with cash on hand, to retire its outstanding 5.40% notes due August 2013 upon maturity.

Short-term debt consisted of the following at September 30, 2012 and December 31, 2011:



(in millions)	September 30, 2012		December 31, 2011
$750.0 million fixed rate notes due August 2013, interest equal to 5.40%	$	749.6	$	—
Total short-term debt	$	749.6	$	—

Long-term debt consisted of the following at September 30, 2012 and December 31, 2011:



(in millions)	September 30, 2012		December 31, 2011
$750.0 million fixed rate notes due August 2013, interest equal to 5.40%	$	—	$	749.2
$750.0 million fixed rate notes due February 2014, interest equal to 5.75%	748.7		748.0
$612.5 million fixed rate notes due March 2018, interest equal to 4.40%⁽¹⁾	610.0		609.6
$750.0 million fixed rate notes due September 2022, interest equal to 3.00%⁽²⁾	747.7		—
Total long-term debt	$	2,106.4	$	2,106.8


(1)	In February 2010, the company entered into a forward-starting interest rate swap agreement that modified the interest obligation associated with these notes so that the interest payable effectively became fixed at a rate of 4.46% at issuance on March 18, 2010.


(2)	In August 2012, the company entered into a forward-starting interest rate swap agreement that modified the interest obligation associated with these notes so that the interest payable effectively became fixed at a rate of 3.32% at issuance on September 10, 2012.

We maintain a commercial paper program under our senior credit facility. There was no commercial paper outstanding at September 30, 2012 or December 31, 2011. As of September 30, 2012, the most recent commercial paper issuance was in March 2011. During the first nine months of 2011, the weighted average balance, at par value, of commercial paper outstanding was $41.0 million. In the first nine months of 2011, the maximum month-end balance for commercial paper was $200.0 million in January.

Long-term debt maturities, at par value, were as follows as of September 30, 2012:



(in millions)	Par Value
2013	$	—
2014	750.0
2015	—
2016	—
2017	—
Thereafter	1,362.5

The fair values of the fixed rate notes due 2013, 2014 and 2022 were estimated using quoted market prices and are considered level 2 liabilities under the classification hierarchy for fair value measurements. The fair value of the fixed rate notes due 2018, which is considered a level 3 liability, was derived using a standard valuation model with market-based observable inputs including U.S. Treasury yields and interest rate spreads. For further information on the three-level classification hierarchy of fair value measurements, see note 8. At September 30, 2012, the fair values of the fixed rate notes were as follows:



(in millions)	Fair Value
$750.0 million fixed rate notes due August 2013	$	781.8
$750.0 million fixed rate notes due February 2014	803.7
$612.5 million fixed rate notes due March 2018	690.6
$750.0 million fixed rate notes due September 2022	759.4