DEBT

Short-term borrowings and the current portion of long-term debt at September 30, 2013 and December 31, 2012 consisted of the following:



	September 30, 2013		December 31, 2012
Zero-coupon convertible subordinated notes	$	110.4	$	130.0
Senior notes due 2013	—		350.0
Total short-term borrowings and current portion of long-term debt	$	110.4	$	480.0

Long-term debt at September 30, 2013 and December 31, 2012 consisted of the following:



	September 30, 2013		December 31, 2012
5 5/8% senior notes due 2015	$	250.0	$	250.0
3 1/8% senior notes due 2016	325.0		325.0
2 1/5% senior notes due 2017	500.0		500.0
4 5/8% senior notes due 2020	606.5		600.0
3 3/4% senior notes due 2022	500.0		500.0
Revolving credit facility	372.0		—
Total long-term debt	$	2,553.5	$	2,175.0

Senior Notes

On August 23, 2012, the Company issued $1,000.0 in new senior notes pursuant to the Company's effective shelf registration statement on Form S-3. The new senior notes consisted of $500.0 aggregate principal amount of 2.20% senior notes due 2017 and $500.0 aggregate principal amount of 3.75% senior notes due 2022. The net proceeds were used to repay $625.0 of the outstanding borrowings under the Company's Revolving Credit Facility (as defined below). The remaining proceeds were available for other general corporate purposes.

The senior notes due 2017 and senior notes due 2022 bear interest at the rate of 2.20% per annum and 3.75% per annum, respectively, payable semi-annually on February 23 and August 23 of each year, commencing February 23, 2013.

During the third quarter of 2013, the Company entered into two fixed-to-variable interest rate swap agreements for the 4.625% senior notes due 2020 with an aggregate notional amount of $600.0 and variable interest rates based on one-month LIBOR plus 2.298% to hedge against changes in the fair value of a portion of the Company's long term debt. These derivative financial instruments are accounted for as fair value hedges of the senior notes due 2020. These interest rate swaps are included in other long term assets and added to the value of the senior notes, with an aggregate fair value of $6.5 at September 30, 2013.

Zero-coupon Subordinated Notes

During the nine months ended September 30, 2013, the Company settled notices to convert $25.3 aggregate principal amount at maturity of its zero-coupon subordinated notes with a conversion value of $31.6. The total cash used for these settlements was $21.3 and the Company also issued 0.1 additional shares of common stock.

On September 12, 2013, the Company announced that for the period of September 12, 2013 to March 11, 2014, the zero-coupon subordinated notes will accrue contingent cash interest at a rate of no less than 0.125% of the average market price of a zero-coupon subordinated note for the five trading days ended September 9, 2013, in addition to the continued accrual of the original issue discount.

On October 1, 2013, the Company announced that its zero-coupon subordinated notes may be converted into cash and common stock at the conversion rate of 13.4108 per $1,000.0 principal amount at maturity of the notes, subject to the terms of the zero-coupon subordinated notes and the Indenture, dated as of October 24, 2006 between the Company and The Bank of New York Mellon, as trustee and conversion agent. In order to exercise the option to convert all or a portion of the zero-coupon subordinated notes, holders are required to validly surrender their zero-coupon subordinated notes at any time during the calendar quarter beginning October 1, 2013, through the close of business on the last business day of the calendar quarter, which is 5:00 p.m., New York City time, on Tuesday, December 31, 2013. If notices of conversion are received, the Company plans to settle the cash portion of the conversion obligation with cash on hand and/or borrowings under the revolving credit facility (as defined below).

Credit Facilities

On December 21, 2011, the Company entered into a Credit Agreement (the "Credit Agreement") providing for a five-year $1,000.0 senior unsecured revolving credit facility (the “Revolving Credit Facility”) with Bank of America, N.A., acting as Administrative Agent, Barclays Capital as Syndication Agent, and a group of financial institutions as lending parties. The balances outstanding on the Company's Revolving Credit Facility at September 30, 2013 and December 31, 2012 were $372.0 and $0.0, respectively. The Revolving Credit Facility bears interest at varying rates based upon a base rate or LIBOR plus (in each case) a percentage based on the Company's debt rating with Standard & Poor's and Moody's Ratings Services.

The Revolving Credit Facility is available for general corporate purposes, including working capital, capital expenditures, acquisitions, funding of share repurchases and other restricted payments permitted under the Credit Agreement. The Credit Agreement also contains limitations on aggregate subsidiary indebtedness and a debt covenant that requires that the Company maintain on the last day of any period of four consecutive fiscal quarters, in each case taken as one accounting period, a ratio of total debt to consolidated EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) of not more than 3.0 to 1.0. The Company was in compliance with all covenants in the Credit Agreement as of September 30, 2013. As of September 30, 2013, the ratio of total debt to consolidated EBITDA was 2.09 to 1.0.

As of September 30, 2013, the effective interest rate on the Revolving Credit Facility was 1.23%.