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Debt
9 Months Ended
Jun. 30, 2011
Debt Disclosure [Abstract]  
Debt

NOTE 4. DEBT

 

Debt June 30, September 30,
(in millions) 2011 2010
Senior notes and debentures:      
Senior notes due April 2011, 5.750% $ - $ 193
Senior notes due September 2014, 4.375%   597   597
Senior notes due September 2015, 4.250%   250   250
Senior notes due April 2016, 6.250%   916   1,496
Senior notes due April 2017, 3.500%   496   -
Senior notes due October 2017, 6.125%   498   497
Senior notes due September 2019, 5.625%   553   554
Senior notes due March 2021, 4.500%   492   -
Senior debentures due April 2036, 6.875%   1,736   1,735
Senior debentures due October 2037, 6.750%   248   248
Senior notes due December 2055, 6.850%   750   750
Capital lease and other obligations    418   432
       
Total debt   6,954   6,752
Less current portion    (26)   (31)
       
Total noncurrent portion $ 6,928 $ 6,721
       

In the second quarter of 2011, we issued a total of $1.0 billion of senior notes with maturities of six and ten years. In February 2011, we issued $500 million aggregate principal amount of 4.5% Senior Notes due 2021 at a price equal to 98.320% of the principal amount. In March 2011, we issued $500 million aggregate principal amount of 3.5% Senior Notes due 2017 at a price equal to 99.139% of the principal amount.

 

We used the net proceeds from the February 2011 offering of $488 million to conduct a cash tender offer to repurchase a portion of the $1.5 billion aggregate principal of our 6.25% Senior Notes due 2016 at a weighted-average purchase price of $1,153.50 per $1,000 of principal. Our repurchase of $582 million of principal pursuant to the tender offer resulted in a pre-tax extinguishment loss of $87 million.

 

During the quarter, we paid off at maturity the remaining $193 million of our 5.75% Senior Notes due April 30, 2011.

 

At June 30, 2011, the total unamortized net discount related to the senior notes and debentures was $32 million. The fair value of the Company's senior notes and debentures exceeded the carrying value by $672 million at June 30, 2011. The valuation of the Company's publicly traded debt is based on quoted prices in active markets.

 

At June 30, 2011, there were no amounts outstanding under the Company's $2.0 billion revolving facility due October 2013 or commercial paper program. The credit facility has one principal financial covenant that requires the Company's interest coverage for the most recent four consecutive fiscal quarters to be at least 3.0x, which the Company met at June 30, 2011.