Borrowings and Lines of Credit

12 Months Ended

Dec. 31, 2011

Borrowings and Lines of Credit [Abstract]

Borrowings

8.    Borrowings and Lines of Credit

Borrowings at December 31, 2011 and 2010 consist of the following:

	December 31, 2011			December 31, 2010
6.50% 10-year notes due February 15, 2011	$	-		$	399,986
4.875% 10-year notes due October 15, 2015		299,244			299,047
5.45% 10-year notes due March 15, 2018		347,938			347,608
4.30% 10-year notes due March 1, 2021		449,761			-
6.60% 30-year notes due March 15, 2038		247,683			247,595
5.375% 30-year notes due March 1, 2041		345,352			-
6.65% 30-year debentures due June 1, 2028		199,414			199,379
5.375% 30-year debentures due October 15, 2035		296,208			296,048
Other, including commercial paper		1,652			17,813
Total long-term debt		2,187,252			1,807,476
Less current portion		(1,022	)		(16,590	)
	$	2,186,230		$	1,790,886

On November 10, 2011, the Company entered into a $1 billion 5-year unsecured revolving credit facility with a syndicate of banks (the “Credit Agreement”) that replaced a facility with similar terms that was set to expire in November 2012.  At the Company's election, loans under the Credit Agreement will bear interest at a Eurodollar or Sterling rate based on LIBOR, plus an applicable margin ranging from 0.565% to 1.225% (subject to adjustment based on the rating according the Company's senior unsecured debt by S&P and Moody's), or at a base rate pursuant to a formula defined in the Credit Agreement.  In addition, the Credit Agreement requires the Company to pay a facility fee and imposes various restrictions on the Company such as, among other things, the requirement for the Company to maintain an interest coverage ratio of EBITDA to consolidated net interest expense of not less than 3.0 to 1. The Company primarily uses this facility as liquidity back-up for its commercial paper program and has not drawn down any loans under the $1 billion facility and does not anticipate doing so. The Company generally uses commercial paper borrowings for general corporate purposes, funding of acquisitions and the repurchases of its common stock.

On February 22, 2011, the Company issued $450 million of 4.30% Notes due 2021 and $350 million of 5.375% Notes due 2041. The proceeds of $788,971 from the sale of the notes, net of discounts and issuance costs, were used to repay commercial paper, including commercial paper issued to repay the Company's $400 million of 6.50% notes, which matured February 15, 2011, and for other general corporate purposes, including the acquisition of Harbison-Fischer.

During the third quarter of 2010, the lender of a structured five-year, non-interest bearing amortizing loan originally due July 2011 called the loan, as permitted per the terms of the agreement.  As a result, the Company repaid the outstanding $51,214 balance and recognized a net loss on extinguishment of $4,343, recorded in other income.

At December 31, 2010, notes payable and current maturities of long-term debt within the Consolidated Balance Sheet included commercial paper of $15,000.  There was no commercial paper outstanding at December 31, 2011. The weighted average interest rate for short-term commercial paper borrowings was 0.2% for both 2011 and 2010.

The long-term note borrowings presented above are net of unamortized discounts of $10,023 and $5,764 in 2011 and 2010, respectively.  The debentures presented above include unamortized discounts of $4,379 and $4,572 in 2011 and 2010, respectively.  The discounts are being amortized to interest expense using the effective interest rate method over the life of the issuances.  The notes and debentures are redeemable at the option of Dover in whole or in part at any time at a redemption price that includes a make-whole premium, with accrued interest to the redemption date.

Scheduled maturities of long-term debt for the years ending December 31 are as follows:

2012	$	1,022
2013		511
2014		12
2015		299,248
2016 and thereafter		1,886,459

Interest expense and interest income for the years ended December 31, 2011, 2010 and 2009 was as follows:

	Years ended December 31,
	2011		2010		2009
Interest expense	$	124,878	$	115,388	$	116,159
Interest income		9,282		8,966		15,687
Interest expense, net	$	115,596	$	106,422	$	100,472

As of December 31, 2011, the Company had approximately $59,891 outstanding in letters of credit with financial institutions, which expire at various dates in 2012 through 2016.  These letters of credit are primarily maintained as security for insurance, warranty and other performance obligations.