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Bank Financing and Debt

3 Months Ended

Mar. 31, 2013

Bank Financing And Debt Disclosure [Abstract]

7) BANK FINANCING AND DEBT

The following table sets forth the Company's debt.

		At		At
		March 31, 2013		December 31, 2012
Commercial paper		$	550	$	—
Senior debt (1.95% – 8.875% due 2014 – 2042) ^(a)			5,862		5,863
Obligations under capital leases			68		72
Total debt			6,480		5,935
	Less discontinued operations debt ^(b)		13		13
Total debt from continuing operations			6,467		5,922
	Less commercial paper		550		—
	Less current portion of long-term debt		16		18
Total long-term debt from continuing operations,
	net of current portion	$	5,901	$	5,904

(a) The senior debt balances included (i) a net unamortized discount of $16 million at both March 31, 2013 and December 31, 2012 and (ii) an increase in the carrying value of the debt relating to previously settled fair value hedges of $22 million and $23 million at March 31, 2013 and December 31, 2012, respectively. The face value of the Company's senior debt was $5.86 billion at both March 31, 2013 and December 31, 2012.

(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.

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.

Commercial Paper

At March 31, 2013, the Company had $550 million of commercial paper borrowings outstanding under its $2.0 billion commercial paper program. Outstanding commercial paper borrowings have a weighted average interest rate of approximately 0.4% and maturities of less than thirty days.

Credit Facility

During the first quarter of 2013, the Company amended and extended its $2.0 billion revolving credit facility (the “Credit Facility”) to March 15, 2018. The amended facility provides for lower borrowing rates and fees, as well as more favorable covenant requirements. The Credit Facility requires the Company to maintain a maximum Consolidated Leverage Ratio of 4.5x at the end of each quarter, as further described in the Credit Facility. At March 31, 2013, the Company's Consolidated Leverage Ratio was approximately 1.7x.

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 Credit Facility is used for general corporate purposes, including support of the Company's commercial paper program. At March 31, 2013, the remaining availability under the Credit Facility, net of outstanding letters of credit, was $1.99 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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