DEBT



	Weighted-Average Interest Rate
	September 30, 2012		December 31, 2011		Maturities	September 30, 2012			December 31, 2011
						(In thousands)
Short-term debt and current portion of long-term debt:
U.S. commercial paper	0.45	%	—	%	2012	$	65,000		—
Short-term debt	1.42	%	1.45	%	2012-2013	4,274			5,091
Current portion of long-term debt, including capital leases						374,355			269,275
Total short-term debt and current portion of long-term debt						443,629			274,366
Long-term debt:
U.S. commercial paper ⁽¹⁾	0.45	%	0.40	%	2016	283,921			415,936
Canadian commercial paper ⁽¹⁾	1.15	%	—	%	2016	22,363			—
Global revolving credit facility	1.62	%	1.52	%	2016	46,056			1,000
Unsecured U.S. notes — Medium-term notes⁽¹⁾	4.02	%	4.49	%	2012-2025	2,984,845			2,484,712
Unsecured U.S. obligations, principally bank term loans	1.62	%	1.78	%	2013-2017	105,500			105,000
Unsecured foreign obligations	2.05	%	2.71	%	2014-2016	312,441			300,516
Capital lease obligations	4.14	%	4.24	%	2012-2018	43,863			48,047
Total before fair market value adjustment						3,798,989			3,355,211
Fair market value adjustment on notes subject to hedging ⁽²⁾						19,827			21,843
						3,818,816			3,377,054
Current portion of long-term debt, including capital leases						(374,355		)	(269,275	)
Long-term debt						3,444,461			3,107,779
Total debt						$	3,888,090		3,382,145

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(1)	We had unamortized original issue discounts of $9.2 million and $8.7 million at September 30, 2012 and December 31, 2011, respectively.


(2)	The notional amount of executed interest rate swaps designated as fair value hedges was $550 million at September 30, 2012 and December 31, 2011.

We can borrow up to $900 million under a global revolving credit facility with a syndicate of twelve lending institutions led by Bank of America N.A., Bank of Tokyo-Mitsubishi UFJ, Ltd., BNP Paribas, Mizuho Corporate Bank, Ltd., Royal Bank of Canada, Royal Bank of Scotland Plc, U.S. Bank National Association and Wells Fargo Bank, N.A. This facility matures in June 2016 and is used primarily to finance working capital and provide support for the issuance of unsecured commercial paper in the U.S. and Canada. This facility can also be used to issue up to $75 million in letters of credit (there were no letters of credit outstanding against the facility at September 30, 2012). At our option, the interest rate on borrowings under the credit facility is based on LIBOR, prime, federal funds or local equivalent rates. The agreement provides for annual facility fees, which range from 10.0 basis points to 32.5 basis points, and are based on Ryder’s long-term credit ratings. The current annual facility fee is 15.0 basis points, which applies to the total facility size of $900 million. The credit facility contains no provisions limiting its availability in the event of a material adverse change to Ryder’s business operations; however, the credit facility does contain standard representations and warranties, events of default, cross-default provisions and certain affirmative and negative covenants. In order to maintain availability of funding, we must maintain a ratio of debt to consolidated net worth, of less than or equal to 300%. Net worth, as defined in the credit facility and amended in April 2012, represents shareholders' equity excluding any accumulated other comprehensive income or loss associated with our pension and other postretirement plans. The ratio at September 30, 2012 was 188%.

Our global revolving credit facility permits us to refinance short-term commercial paper obligations on a long-term basis. Settlement of short-term commercial paper obligations not expected to require the use of working capital are classified as long-term as we have both the intent and ability to refinance on a long-term basis. At September 30, 2012 and December 31, 2011, we classified $306.3 million and $415.9 million, respectively, of short-term commercial paper as long-term debt. At September 30, 2012, we classified $65.0 million of commercial paper as short-term debt as we do not expect to refinance these borrowings for at least one year from the balance sheet date.

In August 2012, we issued $350 million of unsecured medium-term notes maturing in March 2018. In February 2012, we issued $350 million of unsecured medium-term notes maturing in March 2017. The proceeds from the notes were used to pay down commercial paper and for general corporate purposes. If the notes are downgraded following, and as a result of, a change in control, the note holder can require us to repurchase all or a portion of the notes at a purchase price equal to 101% of principal plus accrued and unpaid interest.

We have a trade receivables purchase and sale program, pursuant to which we sell certain of our domestic trade accounts receivable to a bankruptcy remote, consolidated subsidiary of Ryder, that in turn sells, on a revolving basis, an ownership interest in certain of these accounts receivable to a receivables conduit or committed purchasers. The subsidiary is considered a VIE and is consolidated based on our control of the entity’s activities. We use this program to provide additional liquidity to fund our operations, particularly when it is cost effective to do so. The costs under the program may vary based on changes in interest rates. The available proceeds that may be received under the program are limited to $175 million. If no event occurs which causes early termination, the 364-day program will expire on October 26, 2012. We are currently in the process of renewing the program through October 2013. The program contains provisions restricting its availability in the event of a material adverse change to our business operations or the collectability of the collateralized receivables. At September 30, 2012 and December 31, 2011, no amounts were outstanding under the program. Sales of receivables under this program will be accounted for as secured borrowings based on our continuing involvement in the transferred assets.

At September 30, 2012 and December 31, 2011, we had letters of credit and surety bonds outstanding totaling $271.8 million and $271.0 million, respectively, which primarily guarantee the payment of insurance claims.