Quarterly report pursuant to Section 13 or 15(d)

DEBT

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DEBT
 6 Months Ended
Jun. 30, 2011
DEBT
5. DEBT

Debt outstanding at June 30, 2011 and December 31, 2010 was as follows:

   
June 30,
    
December 31,
  
   
2011
    
2010
  
   
(In millions)
  
Note, 4.25%, due in installments through March 2012
   $ -     $ 4.7  
Notes, 7.34%, due in installments through May 2014
     45.0       60.0  
Notes, 4.45%, due December 2014
     275.0       275.0  
Notes, 6.30%, due July 2017
     272.5       272.5  
Debentures, 6.90%, due July 2028
     125.0       125.0  
Notes, 7.00%, due July 2037
     250.0       250.0  
Capitalized lease obligation
     1.6       2.0  
Other
     1.0       1.0  
Total debt
     970.1       990.2  
Less short-term debt and current maturities
     (17.6 )     (20.7 )
Less unamortized discounts
     (2.0 )     (2.1 )
Plus fair value adjustments
     13.4       11.5  
Total long-term debt, net
   $ 963.9     $ 978.9  

Senior Credit Facility.   During the first quarter of 2011, we extended the maturity date and reduced the borrowing limits of our existing unsecured revolving credit facility, which we refer to as the Senior Credit Facility, by entering into a Second Amended and Restated Credit Agreement dated as of February 18, 2011 (the “Amended Agreement”).  The Senior Credit Facility had been scheduled to expire on July 24, 2011, and provided $850.0 million of borrowing capacity.  The Amended Agreement provides for a maturity date of February 18, 2015.  We elected to reduce the size of the facility to $500.0 million in line with our liquidity needs and current credit market conditions, including higher upfront fees and fees for unused borrowing availability.  The Amended Agreement also provides an accordion feature that allows us to request an increase in the total commitment to $750.0 million should we so choose.  We added certain of our subsidiaries in Canada, the U.K. and Luxembourg as co-borrowers in addition to the Company to provide additional flexibility as to the place of borrowing.  Borrowings may be used for general corporate purposes, including working capital, capital expenditures, acquisitions and share repurchase programs. Availability of the Senior Credit Facility for borrowings is reduced by the outstanding face amount of any letters of credit issued under the facility and, pursuant to our existing Board of Directors authorization, by the outstanding principal amount of our commercial paper notes. As of June 30, 2011, there were no outstanding borrowings under this facility and $498.4 million was available for borrowing.

Commercial Paper Program.   During the first quarter of 2011, we reduced the size of our commercial paper program from $850.0 million to $500.0 million.  Our commercial paper program has been established through the private placement of commercial paper notes from time-to-time. Maturities of commercial paper can range from overnight to 397 days. The commercial paper program is supported by our Senior Credit Facility and, pursuant to our existing Board of Directors authorization, the total amount of commercial paper which may be issued is reduced by the amount of any outstanding borrowings under our Senior Credit Facility. At June 30, 2011, there were no commercial paper notes outstanding.

Canadian Credit Facility.   We were party to a credit agreement with a Canadian financial institution that provided for a C$10.0 million (denominated in Canadian dollars), 364-day revolving credit agreement. This agreement was scheduled to expire in June 2011. In connection with the Amended Agreement, we cancelled this agreement at the end of the first quarter and there were no outstanding borrowings under this agreement at the time of cancellation.

For additional information about our debt agreements, see Note 5 of the Notes to Consolidated Financial Statements in our 2010 Form 10-K.