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Bank Financing and Debt

3 Months Ended

Mar. 31, 2012

Bank Financing And Debt Disclosure [Abstract]

6) BANK FINANCING AND DEBT

The following table sets forth the Company's debt.

		At		At
		March 31, 2012		December 31, 2011
Senior debt (3.375% – 8.875% due 2012 – 2056) ^(a)		$	5,871	$	5,925
Obligations under capital leases			74		78
Total debt			5,945		6,003
	Less discontinued operations debt ^(b)		21		21
Total debt from continuing operations			5,924		5,982
	Less current portion		22		24
Total long-term debt from continuing operations,
	net of current portion	$	5,902	$	5,958

(a) At March 31, 2012 and December 31, 2011, the senior debt balances included (i) a net unamortized (discount) premium of $(2) million and $4 million, respectively, and (ii) an increase in the carrying value of the debt relating to previously settled fair value hedges of $27 million and $75 million, respectively. The face value of the Company's senior debt was $5.85 billion at both March 31, 2012 and December 31, 2011.

(b) Included in “Liabilities of discontinued operations” on the Consolidated Balance Sheets.

The senior debt of CBS Corp. is fully and unconditionally guaranteed by its wholly owned subsidiary, CBS Operations Inc. Senior debt in the amount of $52 million of the Company's wholly owned subsidiary, CBS Broadcasting Inc., has no guarantor.

At March 31, 2012, the Company classified $490 million of senior notes and debentures maturing in August 2012 as long-term debt on the Consolidated Balance Sheet, reflecting its intent and ability to refinance this debt on a long-term basis.

During the first quarter of 2012, the Company issued $700 million of 3.375% senior notes due 2022. The net proceeds were used to redeem the Company's $700 million of 6.75% senior notes due 2056, resulting in a pre-tax gain on early extinguishment of debt of $25 million.

Credit Facility

At March 31, 2012, the Company had a $2.0 billion revolving credit facility which expires in March 2015 (the “Credit Facility”). The Credit Facility requires the Company to maintain a maximum Consolidated Leverage Ratio of 4.0x at the end of each quarter and a minimum Consolidated Coverage Ratio of 3.0x for the trailing four quarters, each as further described in the Credit Facility. At March 31, 2012, the Company's Consolidated Leverage Ratio was approximately 1.7x and Consolidated Coverage Ratio was approximately 8.3x.

The Consolidated Leverage Ratio reflects the ratio of the Company's indebtedness from continuing operations, adjusted to exclude certain capital lease obligations, at the end of a quarter, to the Company's Consolidated EBITDA for the trailing four consecutive quarters. Consolidated EBITDA is defined in the Credit Facility as operating income plus interest income and before depreciation, amortization and certain other noncash items. The Consolidated Coverage Ratio reflects the ratio of Consolidated EBITDA to the Company's cash interest expense on indebtedness, adjusted to exclude certain capital lease obligations, in each case for the trailing four consecutive quarters.

The primary purpose of the Credit Facility is to support commercial paper borrowings. At March 31, 2012, the Company had no commercial paper borrowings under its $2.0 billion commercial paper program. At March 31, 2012, the remaining availability under the Credit Facility, net of outstanding letters of credit, was $1.98 billion.

- 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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