1.0.0.3 false Debt false 1 $ false false Shares Standard http://www.xbrl.org/2003/instance shares xbrli 0 USD Standard http://www.xbrl.org/2003/iso4217 USD iso4217 0 USDEPS Divide http://www.xbrl.org/2003/iso4217 USD iso4217 http://www.xbrl.org/2003/instance shares xbrli 0 2 Debt [Abstract] 0 mhs_DebtAbstract mhs false na duration string Debt Footnote Disclosure false false false false false true false false false 1 false false 0 0 false false Debt Footnote Disclosure false 3 Debt 1 us-gaap_DebtDisclosureTextBlock us-gaap true na duration string No definition available. false false false false false false false false false 1 false false 0 0 <div><div><h1 style="margin-top: 0in; margin-right: 0in; margin-bottom: 11.0pt; margin-left: 0in; text-indent: 0in; font-size: 11.0pt; font-family: 'Times New Roman','serif'; text-transform: uppercase; letter-spacing: -.15pt; font-weight: bold;"><a name="_AUC359ec15855204ae6a62c0182378dfed7"></a><a name="_Toc96255587">8.   debt</a></h1> The Company’s debt consists of the following ($ in millions): <table class="MsoNormalTable" border="1" cellspacing="0" cellpadding="0" style="font-size: 10.0pt; font-family: 'Calibri','sans-serif'; margin-left: 41.4pt; border-collapse: separate; border: none;"> <tr> <td width="411" valign="top" style="width: 308.4pt; border: none; padding: 0in 5.4pt 0in 5.4pt; border-top: 0px;">   </td> <td colspan="2" valign="bottom" style="border-top: 0px; border: none; border-bottom: solid windowtext 1.0pt; padding: 0in 5.4pt 0in 5.4pt;"> <p class="MsoNormal" align="center" style="margin-top: 5.0pt; margin-right: 0in; margin-bottom: .0001pt; margin-left: 0in; font-size: 10.0pt; font-family: 'Times New Roman','serif'; margin: 0in; text-align: center; white-space: nowrap;">December 26, 2009 </td> <td width="16" valign="bottom" style="width: 11.8pt; border: none; padding: 0in 5.4pt 0in 5.4pt; border-top: 0px;">   </td> <td colspan="2" valign="bottom" style="border-top: 0px; border: none; border-bottom: solid windowtext 1.0pt; padding: 0in 5.4pt 0in 5.4pt;"> <p class="MsoNormal" align="center" style="margin-top: 5.0pt; margin-right: 0in; margin-bottom: .0001pt; margin-left: 0in; font-size: 10.0pt; font-family: 'Times New Roman','serif'; margin: 0in; text-align: center; white-space: nowrap;">December 27, 2008 </td> </tr> <tr> <td width="411" valign="bottom" style="width: 308.4pt; border: none; padding: 0in 5.4pt 0in 5.4pt; border-top: 0px;"> Short-term debt: </td> <td width="16" valign="bottom" style="width: 11.8pt; border: none; padding: 0in 5.4pt 0in 5.4pt; border-top: 0px;">   </td> <td width="67" valign="bottom" style="width: .7in; border: none; border-top: 0px; padding: 0in 5.4pt 0in 5.4pt;"> <p class="MsoBodyTextIndent" align="left" style="margin-top: 0in; margin-right: .6pt; margin-bottom: .0001pt; margin-left: 0px! important; font-size: 9.0pt; font-family: 'Courier New'; text-align: left; letter-spacing: -.15pt; white-space: nowrap;">  </td> <td width="16" valign="bottom" style="width: 11.8pt; border: none; padding: 0in 5.4pt 0in 5.4pt; border-top: 0px;">   </td> <td width="16" valign="bottom" style="width: 11.8pt; border: none; padding: 0in 5.4pt 0in 5.4pt; border-top: 0px;">   </td> <td width="67" valign="bottom" style="width: .7in; border: none; border-top: 0px; padding: 0in 5.4pt 0in 5.4pt;">   </td> </tr> <tr> <td width="411" valign="bottom" style="width: 308.4pt; border: none; padding: 0in 5.4pt 0in 5.4pt; border-top: 0px;"> <p class="MsoNormal" style="margin-top: 5.0pt; margin-right: 0in; margin-bottom: .0001pt; margin-left: 0in; font-size: 10.0pt; font-family: 'Times New Roman','serif'; margin: 0in; text-indent: 8.1pt; white-space: nowrap;">Accounts receivable financing facility....................................................... </td> <td width="16" valign="top" style="width: 11.8pt; border: none; padding: 0in 5.4pt 0in 5.4pt; border-top: 0px;"> $ </td> <td width="67" valign="bottom" style="width: .7in; border: none; padding: 0in 5.4pt 0in 5.4pt; border-top: 0px;"> — </td> <td width="16" valign="bottom" style="width: 11.8pt; border: none; padding: 0in 5.4pt 0in 5.4pt; border-top: 0px;">   </td> <td width="16" valign="bottom" style="width: 11.8pt; border: none; padding: 0in 5.4pt 0in 5.4pt; border-top: 0px;"> $ </td> <td width="67" valign="bottom" style="width: .7in; border: none; padding: 0in 5.4pt 0in 5.4pt; border-top: 0px;"> <p class="MsoBodyTextIndent" align="left" style="margin-top: 0in; margin-right: .6pt; margin-bottom: .0001pt; margin-left: 0px! important; font-size: 9.0pt; font-family: 'Courier New'; text-align: left; letter-spacing: -.15pt; white-space: nowrap;">600.0 </td> </tr> <tr> <td width="411" valign="bottom" style="width: 308.4pt; border: none; padding: 0in 5.4pt 0in 5.4pt; border-top: 0px;"> <p class="MsoNormal" style="margin-top: 5.0pt; margin-right: 0in; margin-bottom: .0001pt; margin-left: 0in; font-size: 10.0pt; font-family: 'Times New Roman','serif'; margin: 0in; text-indent: 8.1pt; white-space: nowrap;">Other................................................................................................................. </td> <td width="16" valign="top" style="width: 11.8pt; border: none; border-bottom: solid windowtext 1.0pt; padding: 0in 5.4pt 0in 5.4pt; border-top: 0px;">   </td> <td width="67" valign="bottom" style="width: .7in; border: none; border-bottom: solid windowtext 1.0pt; padding: 0in 5.4pt 0in 5.4pt; border-top: 0px;"> 15.8 </td> <td width="16" valign="bottom" style="width: 11.8pt; border: none; padding: 0in 5.4pt 0in 5.4pt; border-top: 0px;">   </td> <td width="16" valign="bottom" style="width: 11.8pt; border: none; border-bottom: solid windowtext 1.0pt; padding: 0in 5.4pt 0in 5.4pt; border-top: 0px;">   </td> <td width="67" valign="bottom" style="width: .7in; border: none; border-bottom: solid windowtext 1.0pt; padding: 0in 5.4pt 0in 5.4pt; border-top: 0px;"> — </td> </tr> <tr> <td width="411" valign="bottom" style="width: 308.4pt; border: none; padding: 0in 5.4pt 0in 5.4pt; border-top: 0px;"> <p class="MsoNormal" style="margin-top: 5.0pt; margin-right: 0in; margin-bottom: .0001pt; margin-left: 0in; font-size: 10.0pt; font-family: 'Times New Roman','serif'; margin: 0in; text-indent: 17.1pt; white-space: nowrap;">Total short-term debt................................................................................. </td> <td width="16" valign="top" style="width: 11.8pt; border: none; border-bottom: solid windowtext 1.0pt; padding: 0in 5.4pt 0in 5.4pt; border-top: 0px;">   </td> <td width="67" valign="bottom" style="width: .7in; border: none; border-bottom: solid windowtext 1.0pt; padding: 0in 5.4pt 0in 5.4pt; border-top: 0px;"> 15.8 </td> <td width="16" valign="bottom" style="width: 11.8pt; border: none; padding: 0in 5.4pt 0in 5.4pt; border-top: 0px;">   </td> <td width="16" valign="bottom" style="width: 11.8pt; border: none; border-bottom: solid windowtext 1.0pt; padding: 0in 5.4pt 0in 5.4pt; border-top: 0px;">   </td> <td width="67" valign="bottom" style="width: .7in; border: none; border-bottom: solid windowtext 1.0pt; padding: 0in 5.4pt 0in 5.4pt; border-top: 0px;"> <p class="MsoBodyTextIndent" align="left" style="margin-top: 0in; margin-right: .6pt; margin-bottom: .0001pt; margin-left: 0px! important; font-size: 9.0pt; font-family: 'Courier New'; text-align: left; letter-spacing: -.15pt; white-space: nowrap;">600.0 </td> </tr> <tr> <td width="411" valign="bottom" style="width: 308.4pt; border: none; padding: 0in 5.4pt 0in 5.4pt; border-top: 0px;"> Long-term debt: </td> <td width="16" valign="top" style="width: 11.8pt; border: none; padding: 0in 5.4pt 0in 5.4pt; border-top: 0px;">   </td> <td width="67" valign="bottom" style="width: .7in; border: none; padding: 0in 5.4pt 0in 5.4pt; border-top: 0px;">   </td> <td width="16" valign="top" style="width: 11.8pt; border: none; padding: 0in 5.4pt 0in 5.4pt; border-top: 0px;">   </td> <td width="16" valign="top" style="width: 11.8pt; border: none; padding: 0in 5.4pt 0in 5.4pt; border-top: 0px;">   </td> <td width="67" valign="bottom" style="width: .7in; border: none; padding: 0in 5.4pt 0in 5.4pt; border-top: 0px;">   </td> </tr> <tr> <td width="411" valign="bottom" style="width: 308.4pt; border: none; padding: 0in 5.4pt 0in 5.4pt; border-top: 0px;"> <p class="MsoNormal" style="margin-top: 5.0pt; margin-right: 0in; margin-bottom: .0001pt; margin-left: 0in; font-size: 10.0pt; font-family: 'Times New Roman','serif'; margin: 0in; text-indent: 8.1pt; white-space: nowrap;">Senior unsecured revolving credit facility.................................................. </td> <td width="16" valign="top" style="width: 11.8pt; border: none; padding: 0in 5.4pt 0in 5.4pt; border-top: 0px;">   </td> <td width="67" valign="bottom" style="width: .7in; border: none; padding: 0in 5.4pt 0in 5.4pt; border-top: 0px;"> 1,000.0 </td> <td width="16" valign="top" style="width: 11.8pt; border: none; padding: 0in 5.4pt 0in 5.4pt; border-top: 0px;">   </td> <td width="16" valign="top" style="width: 11.8pt; border: none; padding: 0in 5.4pt 0in 5.4pt; border-top: 0px;">   </td> <td width="67" valign="bottom" style="width: .7in; border: none; padding: 0in 5.4pt 0in 5.4pt; border-top: 0px;"> 1,000.0 </td> </tr> <tr> <td width="411" valign="bottom" style="width: 308.4pt; border: none; padding: 0in 5.4pt 0in 5.4pt; border-top: 0px;"> <p class="MsoNormal" style="margin-top: 5.0pt; margin-right: 0in; margin-bottom: .0001pt; margin-left: 0in; font-size: 10.0pt; font-family: 'Times New Roman','serif'; margin: 0in; text-indent: 8.1pt; white-space: nowrap;">Senior unsecured term loan.......................................................................... </td> <td width="16" valign="top" style="width: 11.8pt; border: none; padding: 0in 5.4pt 0in 5.4pt; border-top: 0px;">   </td> <td width="67" valign="bottom" style="width: .7in; border: none; padding: 0in 5.4pt 0in 5.4pt; border-top: 0px;"> 1,000.0 </td> <td width="16" valign="top" style="width: 11.8pt; border: none; padding: 0in 5.4pt 0in 5.4pt; border-top: 0px;">   </td> <td width="16" valign="top" style="width: 11.8pt; border: none; padding: 0in 5.4pt 0in 5.4pt; border-top: 0px;">   </td> <td width="67" valign="bottom" style="width: .7in; border: none; padding: 0in 5.4pt 0in 5.4pt; border-top: 0px;"> 1,000.0 </td> </tr> <tr> <td width="411" valign="bottom" style="width: 308.4pt; border: none; padding: 0in 5.4pt 0in 5.4pt; border-top: 0px;"> <p class="MsoNormal" style="margin-top: 5.0pt; margin-right: 0in; margin-bottom: .0001pt; margin-left: 0in; font-size: 10.0pt; font-family: 'Times New Roman','serif'; margin: 0in; text-indent: 8.1pt; white-space: nowrap;">7.25% senior notes due 2013, net of unamortized discount.................. </td> <td width="16" valign="top" style="width: 11.8pt; border: none; padding: 0in 5.4pt 0in 5.4pt; border-top: 0px;">   </td> <td width="67" valign="bottom" style="width: .7in; border: none; padding: 0in 5.4pt 0in 5.4pt; border-top: 0px;"> 498.2 </td> <td width="16" valign="top" style="width: 11.8pt; border: none; padding: 0in 5.4pt 0in 5.4pt; border-top: 0px;">   </td> <td width="16" valign="top" style="width: 11.8pt; border: none; padding: 0in 5.4pt 0in 5.4pt; border-top: 0px;">   </td> <td width="67" valign="bottom" style="width: .7in; border: none; padding: 0in 5.4pt 0in 5.4pt; border-top: 0px;"> 497.8 </td> </tr> <tr> <td width="411" valign="bottom" style="width: 308.4pt; border: none; padding: 0in 5.4pt 0in 5.4pt; border-top: 0px;"> <p class="MsoNormal" style="margin-top: 5.0pt; margin-right: 0in; margin-bottom: .0001pt; margin-left: 0in; font-size: 10.0pt; font-family: 'Times New Roman','serif'; margin: 0in; text-indent: 8.1pt; white-space: nowrap;">6.125% senior notes due 2013, net of unamortized discount................ </td> <td width="16" valign="top" style="width: 11.8pt; border: none; padding: 0in 5.4pt 0in 5.4pt; border-top: 0px;">   </td> <td width="67" valign="bottom" style="width: .7in; border: none; padding: 0in 5.4pt 0in 5.4pt; border-top: 0px;"> 298.8 </td> <td width="16" valign="top" style="width: 11.8pt; border: none; padding: 0in 5.4pt 0in 5.4pt; border-top: 0px;">   </td> <td width="16" valign="top" style="width: 11.8pt; border: none; padding: 0in 5.4pt 0in 5.4pt; border-top: 0px;">   </td> <td width="67" valign="top" style="width: .7in; border: none; padding: 0in 5.4pt 0in 5.4pt; border-top: 0px;"> 298.5 </td> </tr> <tr> <td width="411" valign="bottom" style="width: 308.4pt; border: none; padding: 0in 5.4pt 0in 5.4pt; border-top: 0px;"> <p class="MsoNormal" style="margin-top: 5.0pt; margin-right: 0in; margin-bottom: .0001pt; margin-left: 0in; font-size: 10.0pt; font-family: 'Times New Roman','serif'; margin: 0in; text-indent: 8.1pt; white-space: nowrap;">7.125% senior notes due 2018, net of unamortized discount................ </td> <td width="16" valign="top" style="width: 11.8pt; border: none; padding: 0in 5.4pt 0in 5.4pt; border-top: 0px;">   </td> <td width="67" valign="bottom" style="width: .7in; border: none; padding: 0in 5.4pt 0in 5.4pt; border-top: 0px;"> 1,189.1 </td> <td width="16" valign="top" style="width: 11.8pt; border: none; padding: 0in 5.4pt 0in 5.4pt; border-top: 0px;">   </td> <td width="16" valign="top" style="width: 11.8pt; border: none; padding: 0in 5.4pt 0in 5.4pt; border-top: 0px;">   </td> <td width="67" valign="top" style="width: .7in; border: none; padding: 0in 5.4pt 0in 5.4pt; border-top: 0px;"> 1,188.2 </td> </tr> <tr> <td width="411" valign="bottom" style="width: 308.4pt; border: none; padding: 0in 5.4pt 0in 5.4pt; border-top: 0px;"> <p class="MsoNormal" style="margin-top: 5.0pt; margin-right: 0in; margin-bottom: .0001pt; margin-left: 0in; font-size: 10.0pt; font-family: 'Times New Roman','serif'; margin: 0in; text-indent: 8.1pt; white-space: nowrap;">Fair value of interest rate swap agreements.............................................. </td> <td width="16" valign="top" style="width: 11.8pt; border: none; padding: 0in 5.4pt 0in 5.4pt; border-top: 0px;">   </td> <td width="67" valign="bottom" style="width: .7in; border: none; padding: 0in 5.4pt 0in 5.4pt; border-top: 0px;"> 14.0 </td> <td width="16" valign="top" style="width: 11.8pt; border: none; padding: 0in 5.4pt 0in 5.4pt; border-top: 0px;">   </td> <td width="16" valign="top" style="width: 11.8pt; border: none; padding: 0in 5.4pt 0in 5.4pt; border-top: 0px;">   </td> <td width="67" valign="bottom" style="width: .7in; border: none; padding: 0in 5.4pt 0in 5.4pt; border-top: 0px;"> 18.4 </td> </tr> <tr> <td width="411" valign="bottom" style="width: 308.4pt; border: none; padding: 0in 5.4pt 0in 5.4pt; border-top: 0px;"> <p class="MsoNormal" style="margin-top: 5.0pt; margin-right: 0in; margin-bottom: .0001pt; margin-left: 0in; font-size: 10.0pt; font-family: 'Times New Roman','serif'; margin: 0in; text-indent: 17.1pt; white-space: nowrap;">Total long-term debt.................................................................................. </td> <td width="16" valign="top" style="width: 11.8pt; border-top: 0px; border-left: none; border-bottom: solid windowtext 1.0pt; border-right: none; padding: 0in 5.4pt 0in 5.4pt;">   </td> <td width="67" valign="bottom" style="width: .7in; border-top: 0px; border-left: none; border-bottom: solid windowtext 1.0pt; border-right: none; padding: 0in 5.4pt 0in 5.4pt;"> 4,000.1 </td> <td width="16" valign="top" style="width: 11.8pt; border: none; padding: 0in 5.4pt 0in 5.4pt; border-top: 0px;">   </td> <td width="16" valign="top" style="width: 11.8pt; border-top: 0px; border-left: none; border-bottom: solid windowtext 1.0pt; border-right: none; padding: 0in 5.4pt 0in 5.4pt;">   </td> <td width="67" valign="bottom" style="width: .7in; border-top: 0px; border-left: none; border-bottom: solid windowtext 1.0pt; border-right: none; padding: 0in 5.4pt 0in 5.4pt;"> 4,002.9 </td> </tr> <tr> <td width="411" valign="bottom" style="width: 308.4pt; border: none; padding: 0in 5.4pt 0in 5.4pt; border-top: 0px;"> Total debt............................................................................................................ </td> <td width="16" valign="top" style="width: 11.8pt; border: none; border-bottom: double windowtext 1.5pt; padding: 0in 5.4pt 0in 5.4pt; border-top: 0px;"> $ </td> <td width="67" valign="bottom" style="width: .7in; border: none; border-bottom: double windowtext 1.5pt; padding: 0in 5.4pt 0in 5.4pt; border-top: 0px;"> 4,015.9 </td> <td width="16" valign="top" style="width: 11.8pt; border: none; padding: 0in 5.4pt 0in 5.4pt; border-top: 0px;">   </td> <td width="16" valign="top" style="width: 11.8pt; border: none; border-bottom: double windowtext 1.5pt; padding: 0in 5.4pt 0in 5.4pt; border-top: 0px;"> $ </td> <td width="67" valign="bottom" style="width: .7in; border: none; border-bottom: double windowtext 1.5pt; padding: 0in 5.4pt 0in 5.4pt; border-top: 0px;"> 4,602.9 </td> </tr> </table> <p class="MsoNormal" style="margin-top: 5.0pt; margin-right: 0in; margin-bottom: .0001pt; margin-left: .25in; font-size: 10.0pt; font-family: 'Times New Roman','serif'; margin: 0in; text-autospace: none;">  <p class="MsoNormal" style="margin-top: 5.0pt; margin-right: 0in; margin-bottom: .0001pt; margin-left: 0in; font-size: 10.0pt; font-family: 'Times New Roman','serif'; margin: 0in; text-indent: .25in; text-autospace: none;">6.125% and 7.125% Senior Notes. On March 18, 2008, the Company completed an underwritten public offering of $300 million aggregate principal amount of 5-year senior notes at a price to the public of 99.425 percent of par value, and $1.2 billion aggregate principal amount of 10-year senior notes at a price to the public of 98.956 percent. The 5-year senior notes bear interest at a rate of 6.125% per annum, with an effective interest rate of 6.261%, and mature on March 15, 2013. The 10-year senior notes bear interest at a rate of 7.125% per annum, with an effective interest rate of 7.274%, and mature on March 15, 2018. Medco may redeem all or part of these notes at any time or from time to time at its option at a redemption price equal to the greater of (i) 100% of the principal amount of the notes being redeemed plus accrued and unpaid interest to the redemption date or (ii) a “make-whole” amount based on the yield of a comparable U.S. Treasury security plus 50 basis points. The Company pays interest on both series of senior notes semi-annually on March 15 and September 15 of each year. The Company used the net proceeds from the sale of these senior notes to repay borrowings under its revolving credit facility used to fund the acquisitions in 2007, which are described in Note 3, “Acquisitions of Businesses.”   On December 12, 2007, the Company entered into forward-starting interest rate swap agreements in contemplation of the issuance of long-term fixed-rate financing described above.  The Company entered into these cash flow hedges to manage the Company’s exposure to changes in benchmark interest rates and to mitigate the impact of fluctuations in the interest rates prior to the issuance of the long-term financing. The cash flow hedges entered into were for a notional amount of $500 million on the then-current 10-year treasury interest rate, and for a notional amount of $250 million on the then-current 30-year treasury interest rate, both with a settlement date of March 31, 2008.  At the time of purchase, the cash flow hedges were anticipated to be effective in offsetting the changes in the expected future interest rate payments on the proposed debt offering attributable to fluctuations in the treasury benchmark interest rate.   <p class="MsoNormal" style="margin-top: 5.0pt; margin-right: 0in; margin-bottom: .0001pt; margin-left: 0in; font-size: 10.0pt; font-family: 'Times New Roman','serif'; margin: 0in; text-indent: .25in; text-autospace: none;">In connection with the issuance of the 5-year and 10-year senior notes described above, a portion of the $250 million notional amount 30-year treasury interest rate cash flow hedge was deemed an ineffective hedge. The cash flow hedges were settled on March 17, 2008 for approximately $45.4 million and included the ineffective portion that was recorded as an increase of $9.8 million to interest (income) and other (income) expense, net, for the year ended December 27, 2008. The effective portion was recorded in accumulated other comprehensive income and is reclassified to interest expense over the ten-year period in which the Company hedged its exposure to variability in future cash flows. The effective portion reclassified to interest expense in 2009 and 2008 amounted to $3.6 million and $2.8 million, respectively. The effective portion expected to be reclassified to interest expense in 2010 amounts to $3.6 million. The unamortized effective portion reflected in accumulated other comprehensive loss as of December 26, 2009 and December 27, 2008 was $18.1 million and $20.0 million, net of tax, respectively.   <p class="MsoNormal" style="margin-top: 5.0pt; margin-right: 0in; margin-bottom: .0001pt; margin-left: 0in; font-size: 10.0pt; font-family: 'Times New Roman','serif'; margin: 0in; text-indent: .25in; text-autospace: none;">7.25% Senior Notes. In August 2003, in connection with Medco’s spin-off, the Company completed an underwritten public offering of $500 million aggregate principal amount of 10-year senior notes at a price to the public of 99.195 percent of par value. The senior notes bear interest at a rate of 7.25% per annum, with an effective interest rate of 7.365%, and mature on August 15, 2013. Medco may redeem all or part of these notes at any time or from time to time at its option at a redemption price equal to the greater of (i) 100% of the principal amount of the notes being redeemed, or (ii) the sum of the present values of 107.25% of the principal amount of the notes being redeemed, plus all scheduled payments of interest on the notes discounted to the redemption date at a semi-annual equivalent yield to a comparable treasury issue for such redemption date plus 50 basis points.   <p class="MsoNormal" style="margin-top: 5.0pt; margin-right: 0in; margin-bottom: .0001pt; margin-left: 0in; font-size: 10.0pt; font-family: 'Times New Roman','serif'; margin: 0in; text-indent: .25in; text-autospace: none;">The Company entered into five interest rate swap agreements in 2004. These swap agreements, in effect, converted $200 million of the $500 million of 7.25% senior notes to variable interest rates. The swaps have been designated as fair value hedges and have an expiration date of August 15, 2013, consistent with the maturity date of the senior notes. The fair value of the derivatives outstanding, which is based upon observable market-based inputs that reflect the present values of the difference between estimated future fixed rate payments and future variable rate receipts, represented net receivables of $14.0 million and $18.4 million as of December 26, 2009 and December 27, 2008, respectively, which are reported in other noncurrent assets, with offsetting amounts recorded in long-term debt, net, on the Company’s consolidated balance sheets. These are the amounts that the Company would have received from third parties if the derivative contracts had been settled. Under the terms of these swap agreements, the Company receives a fixed rate of interest of 7.25% on $200 million and pays variable interest rates based on the six-month London Interbank Offered Rate (“LIBOR”) plus a weighted average spread of 3.05%. The payment dates under the agreements coincide with the interest payment dates on the hedged debt instruments and the difference between the amounts paid and received is included in interest expense. Interest expense was reduced by $5.1 million and $1.5 million in fiscal years 2009 and 2008, respectively, and was increased by $2.6 million for fiscal year 2007 as a result of the swap agreements. The weighted average LIBOR associated with the swap agreements was 1.6%, 3.3% and 5.4% for fiscal years 2009, 2008, and 2007, respectively. <p class="MsoNormal" style="margin-top: 5.0pt; margin-right: 0in; margin-bottom: .0001pt; margin-left: 0in; font-size: 10.0pt; font-family: 'Times New Roman','serif'; margin: 0in; text-indent: .25in; text-autospace: none;">  Five-Year Credit Facilities. On April 30, 2007, the Company entered into a senior unsecured credit agreement, which is available for general working capital requirements. The facility consists of a $1 billion, 5-year senior unsecured term loan and a $2 billion, 5-year senior unsecured revolving credit facility. The term loan matures on April 30, 2012, at which time the entire facility is required to be repaid. If there are pre-payments on the term loan prior to the maturity date, that portion of the loan would be extinguished. At the Company’s current debt ratings, the credit facilities bear interest at LIBOR plus a 0.45 percent margin, with a 10 basis point commitment fee due on the unused portion of the revolving credit facility.   The outstanding balance under the revolving credit facility was $1.0 billion as of December 26, 2009 and December 27, 2008. There was no activity under the revolving credit facility during 2009. As of December 26, 2009, the Company had $993 million available for borrowing under its revolving credit facility, after giving effect to prior net draw-downs of $1 billion and $7 million in issued letters of credit.   During 2008, the Company’s net borrowings under the revolving credit facility decreased by approximately $400 million, consisting of repayments of $2.2 billion and draw-downs of $1.8 billion. As a result of this activity, the revolving credit facility’s outstanding balance decreased from $1.4 billion at fiscal year-end 2007 to $1.0 billion as of December 27, 2008.  As of December 27, 2008, the Company had $987 million available for borrowing under its revolving credit facility, after giving effect to prior net draw-downs of $1 billion and $13 million in issued letters of credit. The revolving credit facility is available through April 30, 2012.   Accounts Receivable Financing Facility and Other Short-Term Debt. Through a wholly-owned subsidiary, the Company has a $600 million, 364-day renewable accounts receivable financing facility that is collateralized by the Company’s pharmaceutical manufacturer rebates accounts receivable.  During 2009, the Company repaid the entire $600 million outstanding balance, which resulted in no amounts outstanding and $600 million available for borrowing under the facility at December 26, 2009. At December 27, 2008, there was $600 million outstanding with no additional amounts available for borrowing under the facility. The Company pays interest on amounts borrowed under the agreement based on the funding rates of the bank-related commercial paper programs that provide the financing, plus an applicable margin and liquidity fee determined by the Company’s credit rating. The weighted average annual interest rate on amounts outstanding under the facility at December 27, 2008 was 3.10%. This facility is renewable annually at the option of both Medco and the banks and was renewed on July 27, 2009. Amounts outstanding under the accounts receivable financing facility are classified as short-term debt on the Company’s consolidated balance sheet. Additionally, the Company has short-term debt of $15.8 million outstanding as of December 26, 2009 under an $18.7 million short-term revolving credit facility. The weighted average annual interest rate on amounts outstanding under the short-term revolving credit facility at December 26, 2009 was 1.58%.   Covenants. All of the senior notes discussed above are subject to customary affirmative and negative covenants, including limitations on sale/leaseback transactions; limitations on liens; limitations on mergers and similar transactions; and a covenant with respect to certain change of control triggering events. The 6.125% senior notes and the 7.125% senior notes are also subject to an interest rate adjustment in the event of a downgrade in the ratings to below investment grade. In addition, the senior unsecured credit facilities and the accounts receivable financing facility are subject to covenants, including, among other items, maximum leverage ratios. The Company was in compliance with all covenants at December 26, 2009 and December 27, 2008.   <p class="MsoNormal" style="margin-top: 5.0pt; margin-right: 0in; margin-bottom: .0001pt; margin-left: 0in; font-size: 10.0pt; font-family: 'Times New Roman','serif'; margin: 0in; text-indent: .25in; text-autospace: none;">Aggregate Maturities and Interest Expense. The aggregate maturities of long-term debt are as follows ($ in millions): <div align="center"> <table class="MsoNormalTable" border="1" cellspacing="0" cellpadding="0" style="font-size: 10.0pt; font-family: 'Calibri','sans-serif'; margin-left: 268.5pt; border-collapse: separate; border: none;"> <tr> <td width="264" valign="bottom" style="width: 198.3pt; border: none; padding: 0in 5.4pt 0in 5.4pt; border-top: 0px;"> Fiscal Years Ending December </td> <td width="24" valign="bottom" style="width: .25in; border: none; padding: 0in 5.4pt 0in 5.4pt; border-top: 0px;">   </td> <td width="26" valign="bottom" style="width: 19.3pt; border: none; padding: 0in 5.4pt 0in 5.4pt; border-top: 0px;">   </td> <td width="62" valign="bottom" style="width: 46.7pt; border: none; padding: 0in 5.4pt 0in 5.4pt; border-top: 0px;">   </td> </tr> <tr> <td width="264" valign="bottom" style="width: 198.3pt; border: none; padding: 0in 5.4pt 0in 5.4pt; border-top: 0px;"> 2010 to 2011............................................................................................. </td> <td width="24" valign="bottom" style="width: .25in; border: none; padding: 0in 5.4pt 0in 5.4pt; border-top: 0px;">   </td> <td width="26" valign="bottom" style="width: 19.3pt; border: none; padding: 0in 5.4pt 0in 5.4pt; border-top: 0px;"> $ </td> <td width="62" valign="bottom" style="width: 46.7pt; border: none; padding: 0in 5.4pt 0in 5.4pt; border-top: 0px;"> — </td> </tr> <tr> <td width="264" valign="bottom" style="width: 198.3pt; border: none; padding: 0in 5.4pt 0in 5.4pt; border-top: 0px;"> 2012............................................................................................................ </td> <td width="24" valign="top" style="width: .25in; border: none; padding: 0in 5.4pt 0in 5.4pt; border-top: 0px;">   </td> <td width="26" valign="top" style="width: 19.3pt; border: none; padding: 0in 5.4pt 0in 5.4pt; border-top: 0px;">   </td> <td width="62" valign="bottom" style="width: 46.7pt; border: none; padding: 0in 5.4pt 0in 5.4pt; border-top: 0px;"> 2,000.0 </td> </tr> <tr> <td width="264" valign="bottom" style="width: 198.3pt; border: none; padding: 0in 5.4pt 0in 5.4pt; border-top: 0px;"> 2013............................................................................................................ </td> <td width="24" valign="top" style="width: .25in; border: none; padding: 0in 5.4pt 0in 5.4pt; border-top: 0px;">   </td> <td width="26" valign="top" style="width: 19.3pt; border: none; padding: 0in 5.4pt 0in 5.4pt; border-top: 0px;">   </td> <td width="62" valign="bottom" style="width: 46.7pt; border: none; padding: 0in 5.4pt 0in 5.4pt; border-top: 0px;"> 800.0 </td> </tr> <tr> <td width="264" valign="bottom" style="width: 198.3pt; border: none; padding: 0in 5.4pt 0in 5.4pt; border-top: 0px;"> 2014 to 2017............................................................................................. </td> <td width="24" valign="top" style="width: .25in; border: none; padding: 0in 5.4pt 0in 5.4pt; border-top: 0px;">   </td> <td width="26" valign="top" style="width: 19.3pt; border: none; padding: 0in 5.4pt 0in 5.4pt; border-top: 0px;">   </td> <td width="62" valign="bottom" style="width: 46.7pt; border: none; padding: 0in 5.4pt 0in 5.4pt; border-top: 0px;"> — </td> </tr> <tr> <td width="264" valign="bottom" style="width: 198.3pt; border: none; padding: 0in 5.4pt 0in 5.4pt; border-top: 0px;"> 2018............................................................................................................ </td> <td width="24" valign="top" style="width: .25in; border: none; padding: 0in 5.4pt 0in 5.4pt; border-top: 0px;">   </td> <td width="26" valign="top" style="width: 19.3pt; border: none; padding: 0in 5.4pt 0in 5.4pt; border-top: 0px;">   </td> <td width="62" valign="bottom" style="width: 46.7pt; border: none; border-bottom: solid windowtext 1.0pt; padding: 0in 5.4pt 0in 5.4pt; border-top: 0px;"> 1,200.0 </td> </tr> <tr> <td width="264" valign="bottom" style="width: 198.3pt; border: none; padding: 0in 5.4pt 0in 5.4pt; border-top: 0px;"> Total............................................................................................................ </td> <td width="24" valign="top" style="width: .25in; border: none; padding: 0in 5.4pt 0in 5.4pt; border-top: 0px;">   </td> <td width="26" valign="top" style="width: 19.3pt; border: none; padding: 0in 5.4pt 0in 5.4pt; border-top: 0px;"> $ </td> <td width="62" valign="bottom" style="width: 46.7pt; border: none; border-bottom: double windowtext 1.5pt; padding: 0in 5.4pt 0in 5.4pt; border-top: 0px;"> 4,000.0 </td> </tr> </table> </div>   <p class="MsoNormal" style="margin-top: 5.0pt; margin-right: 0in; margin-bottom: .0001pt; margin-left: .25in; font-size: 10.0pt; font-family: 'Times New Roman','serif'; margin: 0in; text-autospace: none;">Interest expense on total debt was $172.5 million in 2009, $233.7 million in 2008 and $134.2 million in 2007. </div></div> 8.   debt The Company’s debt consists of the following ($ in millions):   December 26, 2009   December 27, 2008 false false No definition available. No authoritative reference available. false false 1 2 false UnKnown UnKnown UnKnown false true