Long-term debt. On May 23, 2011, we issued an aggregate principal amount of $3.50 billion of fixed- and floating-rate long-term debt as detailed below to help fund the National acquisition. The proceeds of the offering were $3.497 billion, net of the original issuance discount. We also incurred $12 million of issuance costs which are included in Other assets and will be amortized to Interest and debt expense over the individual notes’ lives.

In connection with this issuance, we also entered into an interest rate swap transaction related to the $1.0 billion notional amount of our floating-rate debt due 2013. Under this swap agreement we will receive variable payments based on three-month LIBOR rates and pay a fixed rate through May 15, 2013. Changes in the cash flows of the interest rate swap are expected to exactly offset the changes in cash flows attributable to fluctuations in the three-month LIBOR-based interest payments. We have designated this interest rate swap as a cash flow hedge and record changes in its fair value in AOCI. The net effect of this swap is to convert the variable interest rate to a fixed rate of 0.922%.

Following is a summary of the long-term debt outstanding as of June 30, 2011:



$1.0 billion floating-rate notes due 2013 (swapped to a 0.922% fixed rate)	$	1,000
$500 million 0.875% notes due 2013	500
$1.0 billion 1.375% notes due 2014	1,000
$1.0 billion 2.375% notes due 2016	1,000
Less unamortized discount	(2		)
Total long-term debt	$	3,498

If our planned acquisition of National does not close by April 30, 2012, or the agreement is otherwise terminated, we are obligated to redeem the $2.5 billion of fixed-rate debt. This redemption would be 15 business days following the earlier of April 30, 2012, or the date the agreement is terminated, at a redemption price equal to 101% of the aggregate principal amount of the fixed-rate debt, plus accrued interest. We are not obligated to redeem the floating-rate notes.