Debt

Our senior notes are summarized as follows ($000’s omitted):



	December 31,
	2011		2010
8.125% unsecured senior notes due February 2011 (a)	$	—	$	13,900
5.45% unsecured senior notes due August 2012 (b)	96,795		104,823
6.25% unsecured senior notes due February 2013 (b)	62,677		62,617
5.125% unsecured senior notes due October 2013 (b)	117,197		160,212
5.25% unsecured senior notes due January 2014 (b)	255,882		335,848
5.70% unsecured senior notes due May 2014 (b)	311,900		309,048
5.20% unsecured senior notes due February 2015 (b)	207,906		244,839
5.25% unsecured senior notes due June 2015 (b)	270,551		397,700
6.50% unsecured senior notes due May 2016 (b)	469,147		466,644
7.625% unsecured senior notes due October 2017 (a)	149,373		149,265
7.875% unsecured senior notes due June 2032 (b)	299,108		299,065
6.375% unsecured senior notes due May 2033 (b)	398,418		398,344
6.00% unsecured senior notes due February 2035 (b)	299,390		299,363
7.375% unsecured senior notes due June 2046 (b)	150,000		150,000
Total senior notes – carrying value (c)	$	3,088,344	$	3,391,668
Estimated fair value	$	2,765,151	$	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

Refer to Note 16 for supplemental consolidating financial information of the Company.

The indentures governing the senior notes impose certain restrictions on the incurrence of additional debt along with other limitations. At December 31, 2011, we were in compliance with all of the covenants and requirements under the senior notes.

Total senior note principal maturities during the five years after 2011 are as follows: 2012 - $96.4 million; 2013 - $182.2 million; 2014 - $574.6 million; 2015 - $492.5 million; 2016 - $480.0 million; and thereafter - $1.3 billion.

Debt retirement

During the last three years, we reduced our outstanding senior notes through a variety of transactions ($000’s omitted):



Retirement Date	Series	Transaction Type	Principal Retired
November / December 2011	5.25% unsecured senior notes due January 2014	Open market repurchases	$	80,000
	5.20% unsecured senior notes due February 2015		37,000
	5.25% unsecured senior notes due June 2015		140,000
			257,000
June 2011	5.45% unsecured senior notes due August 2012	Open market repurchases	7,306
	5.125% unsecured senior notes due October 2013		45,690
			52,996
February 2011	8.125% unsecured senior notes due February 2011	Scheduled maturity	13,900
Total 2011			$	323,896

December 2010	7.875% unsecured notes due February 2011	Early redemption as	85,595
	7.875% unsecured notes due July 2011	provided within indenture	132,186
	7.50% unsecured notes due January 2012	agreements	110,262
			328,043
November 2010	5.45% unsecured notes due August 2012	Open market repurchases	23,000
October 2010	4.55% unsecured notes due November 2010	Scheduled maturity	47,427
October 2010	6.25% unsecured notes due February 2013	Tender offer	162,471
	5.125% unsecured notes due October 2013		104,749
	5.25% unsecured notes due January 2014		128,077
	5.70% unsecured notes due May 2014		31,329
	5.20% unsecured notes due February 2015		47,838
	5.25% unsecured notes due June 2015		25,536
			500,000
Total 2010			$	898,470

September 2009	4.55% unsecured notes due November 2010	Tender offer	252,573
	7.875% unsecured notes due February 2011		306,905
	8.125% unsecured notes due February 2011		186,098
	7.875% unsecured notes due July 2011		341,377
	7.50% unsecured notes due January 2012		214,662
	5.45% unsecured notes due August 2012		168,301
	5.125% unsecured notes due October 2013		30,084
			1,500,000
September 2009	5.80% unsecured notes due September 2009	Scheduled maturity	210,920
July 2009	4.875% unsecured notes due July 2009	Scheduled maturity	25,413
May / June 2009	7.875% unsecured notes due July 2011	Open market repurchases	25,000
	6.25% unsecured notes due February 2013		74,785
	5.25% unsecured notes due January 2014		36,004
	5.20% unsecured notes due February 2015		57,135
			192,924
Total 2009			$	1,929,257
Total for three-year period			$	3,151,623

We recorded losses related to these transactions totaling $5.6 million, $38.9 million, and $31.6 million in 2011, 2010 and 2009, respectively. 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, we voluntarily terminated our $250.0 million unsecured revolving credit facility ("the Credit Facility") effective March 30, 2011. The Credit Facility was scheduled to expire in June 2012 and was being used solely to issue letters of credit ($221.6 million outstanding at December 31, 2010). No borrowings were outstanding under the Credit Facility during 2011, 2010, or 2009. We did not pay any penalties as a result of the termination. The termination of the Credit Facility also:


•	released $250.0 million of cash required to be maintained in liquidity reserve accounts; 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 during 2011.

In connection with the termination of the Credit Facility, we 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 $191.2 million, the majority of which is uncommitted. Letters of credit totaling $83.2 million were outstanding under these agreements at December 31, 2011. Under these agreements, we are required to maintain deposits with these financial institutions in amounts approximating the letters of credit outstanding. Such deposits are included in restricted cash.

We also maintain an unsecured letter of credit facility with a bank that expires in June 2014. This facility permits the issuance of up to $200.0 million of letters of credit for general corporate purposes in support of any wholly-owned subsidiary. At December 31, 2011 and 2010, $152.7 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 our home closings utilizing its own funds and funds available pursuant to a repurchase agreement with the Company. 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 our current 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. In order to satisfy regulatory requirements in certain states, Pulte Mortgage maintains a $2.5 million repurchase lending agreement with a bank that expires in October 2012. There were no borrowings outstanding under this facility at December 31, 2011.

The following is aggregate borrowing information for our mortgage operations ($000’s omitted):



	2011			2010			2009
Available credit lines at year-end	$	2,500		$	2,500		$	175,000
Unused credit lines at year-end	$	2,500		$	2,500		$	157,000
Maximum amount outstanding at the end of any month	$	—		$	75,403		$	79,422
Average monthly indebtedness	$	—		$	17,241		$	44,522

Range of interest rates during the year:	N/A			4.25		%	0.53		%
				to			to
				4.50		%	4.75		%
Weighted-average rate at year-end	4.50		%	4.50		%	4.29		%

Borrowings under Pulte Mortgage’s credit lines are secured by residential mortgage loans available-for-sale. The carrying amounts of such borrowings approximate fair value