Debt

12 Months Ended

Sep. 30, 2012

14. Debt

The tables below summarize our outstanding debt at 30 September 2012 and 2011:

Total Debt

30 September		2012		2011
Short-term borrowings	$	633.4	$	561.8
Current portion of long-term debt		74.3		72.2
Long-term debt		4,584.2		3,927.5
Total Debt	$	5,291.9	$	4,561.5

Short-term Borrowings

30 September		2012		2011
Bank obligations	$	570.6	$	561.8
Short-term borrowings associated with Indura S.A. acquisition		62.8		-
Total Short-term Borrowings	$	633.4	$	561.8

The weighted average interest rate of short-term borrowings outstanding at 30 September 2012 and 2011 was 1.5% and 2.5%, respectively.

Cash paid for interest, net of amounts capitalized, was $127.6 in 2012, $117.4 in 2011, and $126.9 in 2010.

Long-term Debt

30 September		Maturities		2012		2011
Payable in U.S. Dollars
	Debentures
	8.75%	2021	$	18.4	$	18.4
	Medium-term Notes (weighted average rate)
	Series D 7.3%	2016		32.1		32.1
	Series E 7.6%	2026		17.2		17.2
	Senior Notes
	Note 4.15%	2013		300.0		300.0
	Note 2.0%	2016		350.0		350.0
	Note 1.2%	2018		400.0		-
	Note 4.375%	2019		400.0		400.0
	Note 3.0%	2022		400.0		-
	Other (weighted average rate)
	Variable-rate industrial revenue bonds 0.2%	2021 to 2050		917.1		975.1
	Other 2.7%	2013 to 2019		67.8		58.5
Payable in Other Currencies
	Eurobonds 4.25%	2012		-		401.6
	Eurobonds 3.75%	2014		385.8		401.6
	Eurobonds 3.875%	2015		385.8		401.6
	RMB Syndicated Credit Facility 4.6%	2015		31.7		-
	Eurobonds 4.625%	2017		385.8		401.6
	Other 2.6%	2013 to 2018		569.3		241.9
Capital Lease Obligations
	United States 5.0%	2013 to 2018		1.5		4.8
	Foreign 4.1%	2013 to 2017		1.0		2.7
Less: Unamortized discount				(5.0)		(7.4)
Total Long-term Debt				4,658.5		3,999.7
Less: Current portion of long-term debt				(74.3)		(72.2)
Long-term Debt			$	4,584.2	$	3,927.5

Maturities of long-term debt in each of the next five years and beyond are as follows:

2013	$	374.3
2014		572.5
2015		405.9
2016		432.4
2017		418.4
Thereafter		2,455.0
Total	$	4,658.5

On 3 November 2011 we issued a $400.0 senior fixed-rate 3.0% note that matures 3 November 2021. Additionally, on 13 September 2012 we issued a $400.0 senior fixed-rate 1.2% note that matures 15 October 2017.

In relation to the Indura S.A. acquisition, we paid cash consideration in Chilean Pesos (CLP) of 345.5 billion ($690) and assumed debt of CLP113.8 billion ($227). An acquisition financing facility was arranged with Banco Santander, Chile to provide the initial financing required. This was a CLP committed credit facility with a total commitment of CLP390 billion ($778). Of this facility, CLP347 billion ($693) was drawn on 3 July 2012 to fund the business combination and related expenses, and the balance of the commitment was cancelled. This facility was fully repaid on 2 August 2012, primarily with proceeds from U.S. commercial paper issuance. A portion of this commercial paper was subsequently refinanced with the $400 senior fixed-rate 1.2% note described above. Refer to Note 5, Business Combinations, for additional information.

We have obtained the commitment of a number of commercial banks to lend money at market rates. At 30 September 2012, our total multicurrency committed credit facility amounted to $2,170.0 with a maturity date of 30 June 2015. This credit facility includes a financial covenant that requires a leverage ratio (long-term debt divided by the sum of long-term debt plus equity) no greater than 60%. This credit facility provides a source of liquidity and is used to support the issuance of commercial paper. No borrowings were outstanding under this commitment at 30 September 2012. Effective 11 June 2012, we entered into an offshore Chinese Renminbi (RMB) syndicated credit facility of RMB1,000.0 million ($158.7), maturing in June 2015. There are RMB200.0 million ($31.7) in outstanding borrowings under this commitment at 30 September 2012. Additional commitments totaling $400.0 are maintained by our foreign subsidiaries, of which $387.0 was borrowed and outstanding at 30 September 2012.

We have classified the 4.15% senior note maturing in 2013 as long-term debt because we have the ability to refinance the debt under our $2,170.0 committed credit facility maturing in 2015. Our current intent is to refinance this debt via the U.S. public or private placement markets.

Various debt agreements to which we are a party also include financial covenants and other restrictions, including restrictions pertaining to the ability to create property liens and enter into certain sale and leaseback transactions. We are in compliance with all of our financial debt covenants.

- 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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