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Debt

9 Months Ended

Sep. 30, 2012

3. Debt

The following table summarizes the long-term debt of the Company:

	September 30,		December 31,		September 30,
	2012		2011		2011
Secured Credit Agreement:
Revolving Credit Facility:
Revolving Loans	$	—	$	—	$	30
Term Loans:
Term Loan A (119 million AUD at September 30, 2012)	125		173		166
Term Loan B	548		600		600
Term Loan C (110 million CAD at September 30, 2012)	113		114		112
Term Loan D (€134 million at September 30, 2012)	173		182		191
Senior Notes:
3.00%, Exchangeable, due 2015	637		624		620
7.375%, due 2016	590		588		587
6.875%, due 2017 (€300 million)	388		388		406
6.75%, due 2020 (€500 million)	647		647		677
Senior Debentures:
7.80%, due 2018	250		250		250
Other	103		137		154
Total long-term debt	3,574		3,703		3,793
Less amounts due within one year	37		76		50
Long-term debt	$	3,537	$	3,627	$	3,743

On May 19, 2011, the Company’s subsidiary borrowers entered into the Secured Credit Agreement (the “Agreement”). At September 30, 2012, the Agreement included a $900 million revolving credit facility, a 119 million Australian dollar term loan, a $548 million term loan, a 110 million Canadian dollar term loan, and a €134 million term loan, each of which has a final maturity date of May 19, 2016. At September 30, 2012, the Company’s subsidiary borrowers had unused credit of $807 million available under the Agreement.

The weighted average interest rate on borrowings outstanding under the Agreement at September 30, 2012 was 2.52%.

The Company has a €240 million European accounts receivable securitization program, which extends through September 2016, subject to annual renewal of backup credit lines. Information related to the Company’s accounts receivable securitization program is as follows:

	September 30,			December 31,			September 30,
	2012			2011			2011

Balance (included in short-term loans)	$	276		$	281		$	233

Weighted average interest rate	1.13		%	2.41		%	1.87		%

The carrying amounts reported for the accounts receivable securitization programs, and certain long-term debt obligations subject to frequently redetermined interest rates, approximate fair value.

Fair values for the Company’s significant fixed rate debt obligations are based on published market quotations, and are classified as Level 1 in the fair value hierarchy.

Fair values at September 30, 2012 of the Company’s significant fixed rate debt obligations are as follows:

			Indicated
	Principal		Market	Fair
	Amount		Price	Value
Senior Notes:
3.00%, Exchangeable, due 2015	$	690	98.36	$	679
7.375%, due 2016	600		114.63	688
6.875%, due 2017 (€300 million)	388		103.00	400
6.75%, due 2020 (€500 million)	647		111.38	721
Senior Debentures:
7.80%, due 2018	250		115.63	289

- 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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