Issue link: http://catalog.e-digitaleditions.com/i/114936
Rent expense totaled $98, $96, and $81 in 2012, 2011 and 2010, respectively. NOTE 7 - LONG-TERM DEBT AND CREDIT FACILITIES Our debt is summarized as follows: December 31 2012 3.00% senior unsecured notes, due January 15, 2015 4.375% senior unsecured notes, due January 15, 2020 2.00% senior unsecured notes, due September 30, 2016 Other Total debt Less current maturities Long-term debt $ $ 2011 500 $ 497 749 16 1,762 (16) 1,746 $ 500 497 749 22 1,768 (17) 1,751 In August 2012 we refinanced our credit facility with a new $1,000 Unsecured Revolving Credit Facility due August 2017 (2012 Facility). The 2012 Facility replaced the previously outstanding $1,000 Unsecured Credit Facility due in August 2013. The 2012 Facility includes an increase option permitting us to increase the size of the facility up to an additional $500, a $500 multicurrency sublimit (with no sublimit for euro borrowings) and a $100 letter of credit sublimit. The 2012 Facility has an annual facility fee ranging from 5 to 22.5 basis points and bears interest at LIBOR, as defined in the 2012 Facility agreement, plus an applicable margin ranging from 57.5 to 127.5 basis points, both of which are dependent on our credit ratings. The 2012 Facility requires us to comply with certain financial and other covenants. We were in compliance with all covenants at December 31, 2012. In September 2011 we sold $750 of unsecured notes due September 2016 (the 2016 Notes). The 2016 Notes bear interest at 2.00% per year and, unless previously redeemed, will mature on September 30, 2016. We received net proceeds of $749, net of an offering discount of $1. On July 15, 2011, we entered into a commercial paper program (the Program) under which we may issue, on a private placement basis, unsecured commercial paper notes (the Notes) up to a maximum aggregate amount outstanding at any time of $500. We may issue the Notes under the Program from time to time. The net proceeds from the sale of the Notes will be used for general corporate purposes. The Program contains customary representations, warranties, covenants and indemnification provisions. The maturities of the Notes will vary but may not exceed 397 days, and the Notes must be in a minimum denomination of $0.25. The Notes will be sold at a discount from par or, alternatively, will be sold at par and bear interest at either a fixed or floating rate that will vary based upon market conditions at the time of the issuance of the Notes. The interest on a floating rate Note may be (a) the CD rate, (b) the commercial paper rate, (c) the federal funds rate, (d) the LIBOR rate, (e) the prime rate, (f) the treasury rate or (g) such other base rate as may be specified at the time of issuance. The Notes will not be redeemable prior to maturity or be subject to voluntary prepayment. As of December 31, 2012, no Notes had been issued under the Program. In addition, we have lines of credit, issued by various financial institutions, available to fund our day-to-day operating needs. At December 31, 2012, we had $1,063 of borrowing capacity available under all of our existing credit facilities. The weighted-average interest rate, excluding required fees, for all borrowings was 3.0% at December 31, 2012. At December 31, 2012, total unamortized debt issuance costs incurred in connection with our unsecured notes were $10. The fair value of long-term debt (including current maturities) at December 31, 2012 and December 31, 2011 was $1,866 and $1,837, respectively, based on the quoted interest rates for similar types and amounts of borrowing agreements. Interest expense, including required fees incurred on outstanding debt and credit facilities, which is included in other income (expense), totaled $63, $56, and $53 in 2012, 2011 and 2010, respectively. Interest paid on debt, including required fees, was $55, $39 and $39 in 2012, 2011 and 2010, respectively. NOTE 8 - CAPITAL STOCK In December of 2012, 2011 and 2010, we announced that our Board of Directors had authorized us to purchase up to $405, $500 and $500, respectively, of our common stock (the 2012, 2011 and 2010 Repurchase Programs, respectively). The manner, timing and amount of purchases is determined by management based on an evaluation of market conditions, stock price and other factors and is subject to regulatory considerations. Purchases are to be made from time to time in the open market, in privately negotiated transactions or otherwise. Under the 2010 Repurchase Program, we repurchased 2.1 million shares at a cost of $108 during 2012. At December 31, 2012, the maximum dollar value of shares that may yet be purchased under the authorized Repurchase Programs was $1,000. We had not made any repurchases pursuant to the 2012 or 2011 Repurchase Programs at December 31, 2012. Shares repurchased under the share repurchase programs are available for general corporate purposes, including offsetting dilution associated with stock option and other equity-based employee benefit plans. 34 Dollar amounts in millions except per share amounts or as otherwise specified