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Debt and Other Financing Arrangements | 6 Months Ended
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Jun. 30, 2011
Debt and Other Financing Arrangements |
Debt and Other Financing Arrangements |
10. | Debt and other financing arrangements
The Company's senior notes are summarized as follows:
|  | June 30, 2011 |  |  | December 31, 2010 |
8.125% unsecured senior notes due February 2011 (a) |  | $ | — |  |  | $ | 13,900 |
5.45% unsecured senior notes due August 2012 (b) |  |  | 97,116 |  |  |  | 104,823 |
6.25% unsecured senior notes due February 2013 (b) |  |  | 62,647 |  |  |  | 62,617 |
5.125% unsecured senior notes due October 2013 (b) |  |  | 116,545 |  |  |  | 160,212 |
5.25% unsecured senior notes due January 2014 (b) |  |  | 335,859 |  |  |  | 335,848 |
5.70% unsecured senior notes due May 2014 (b) |  |  | 310,474 |  |  |  | 309,048 |
5.20% unsecured senior notes due January 2015 (b) |  |  | 244,862 |  |  |  | 244,839 |
5.25% unsecured senior notes due June 2015 (b) |  |  | 400,702 |  |  |  | 397,700 |
6.50% unsecured senior notes due May 2016 (b) |  |  | 467,894 |  |  |  | 466,644 |
7.625% unsecured senior notes due September 2017 (a) |  |  | 149,319 |  |  |  | 149,265 |
7.875% unsecured senior notes due May 2032 (b) |  |  | 299,087 |  |  |  | 299,065 |
6.375% unsecured senior notes due May 2033 (b) |  |  | 398,381 |  |  |  | 398,344 |
6.00% unsecured senior notes due January 2035 (b) |  |  | 299,377 |  |  |  | 299,363 |
7.375% unsecured senior notes due June 2046 (b) |  |  | 150,000 |  |  |  | 150,000 |
Total senior notes - carrying value (c) |  | $ | 3,332,263 |  |  | $ | 3,391,668 |
Estimated fair value |  | $ | 3,244,674 |  |  | $ | 3,227,404 |
(a) | Not redeemable prior to maturity, guaranteed on a senior basis by certain wholly-owned subsidiaries
(b) | Redeemable prior to maturity, guaranteed on a senior basis by certain wholly-owned subsidiaries
(c) | The recorded carrying value reflects the impact of various discounts and premiums that are amortized to interest cost over the respective terms of the senior notes
Debt retirement During the three months ended June 30, 2011, the Company retired prior to their stated maturity dates $53.0 million of senior notes. The Company recorded losses related to these transactions totaling $3.5 million for the three and six months ended June 30, 2011. Losses on these transactions include the write-off of unamortized discounts, premiums, and transaction fees and are reflected in other expense (income), net. Letter of credit facilities As a cost-saving measure and to provide increased operational flexibility, the Company voluntarily terminated its $250.0 million unsecured revolving credit facility effective March 30, 2011. The credit facility was scheduled to expire in June 2012, had no borrowings outstanding, and was being used solely to issue letters of credit ($221.6 million outstanding at December 31, 2010). The Company did not pay any penalties as a result of the termination. The termination of the facility also:
| • |  | released the $250.0 million of cash required by the credit facility to be maintained in liquidity reserve accounts;
| • |  | released the Company from the credit facility's covenant requirements, which included, among other things, a maximum debt to tangible capital ratio and a tangible net worth minimum; and
| • |  | resulted in expense of $1.3 million related to the write-off of unamortized issuance costs, which is included within selling, general, and administrative expenses for the six months ended June 30, 2011.
In connection with the termination of the credit facility, the Company entered into separate cash-collateralized letter of credit agreements with a number of financial institutions. These agreements provide capacity to issue letters of credit totaling up to $192.0 million, of which $103.9 million was outstanding at June 30, 2011. Under these agreements, the Company is required to maintain deposits with these financial institutions in amounts approximating the letters of credit outstanding. Such deposits are included in restricted cash . The Company also maintains an unsecured letter of credit facility with Deutsche Bank AG, New York Branch that expires in June 2014 and permits the issuance of up to $200.0 million of letters of credit by the Company. At June 30, 2011 and December 31, 2010, $151.2 million and $167.2 million, respectively, of letters of credit were outstanding under this facility. Financial Services Pulte Mortgage provides mortgage financing for many of the Company's home sales utilizing its own funds and borrowings made available pursuant to certain repurchase agreements. Pulte Mortgage uses these resources to finance its lending activities until the mortgage loans are sold to third party investors, generally within 30 days. Given the Company's strong liquidity position and the cost of third party financing relative to existing mortgage rates, Pulte Mortgage allowed each of its third party borrowing arrangements to expire during 2010 and began funding its operations using internal Company resources.

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- Definition The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02.19,20,22) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 129 -Paragraph 2, 4 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 19, 20, 22 -Article 5 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21475-112644 + Details
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