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Debt, Credit Arrangements and Preferred Stock (Notes) | 9 Months Ended
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Sep. 30, 2011
Debt, Credit Arrangements and Preferred Stock [Abstract] |
Debt, Credit Arrangements and Preferred Stock | Debt, Credit Arrangements and Preferred Stock Long-Term Debt A summary of the carrying amounts and fair values of our long-term debt is listed below.
| Effective Interest Rate |  | September 30, 2011 |  | December 31, 2010
Book Value |  | Fair Value 2 |  | Book Value |  | Fair Value 2
7.25% Senior Unsecured Notes due 2011 | 7.25 | % | 1 | $ | 0.0 |  |  | $ | 0.0 |  |  | $ | 36.3 |  |  | $ | 37.0 |
6.25% Unsecured Notes due 2014 (less unamortized discount of $0.3) | 6.29 | % | 1 | 354.6 |  |  | 370.1 |  |  | 353.3 |  |  | 378.0 |
10.00% Senior Unsecured Notes due 2017 (less unamortized discount of $9.7) | 10.38 | % |  | 590.3 |  |  | 681.0 |  |  | 589.4 |  |  | 705.0 |
4.75% Convertible Senior Notes due 2023 (plus unamortized premium of $3.3) | 3.50 | % |  | 203.3 |  |  | 213.8 |  |  | 205.0 |  |  | 235.0 |
4.25% Convertible Senior Notes due 2023 (plus unamortized premium of $6.6) | 0.58 | % |  | 406.6 |  |  | 404.5 |  |  | 417.4 |  |  | 444.4 |
Other notes payable and capitalized leases |  |  | 19.9 |  |  |  |  | 20.8 |  |  |
Total long-term debt |  |  | 1,574.7 |  |  |  |  | 1,622.2 |  |  |
Less: current portion 3 |  |  | 408.5 |  |  |  |  | 38.9 |  |  |
Long-term debt, excluding current portion |  |  | $ | 1,166.2 |  |  |  |  | $ | 1,583.3 |  |  |
1 | Excludes the effect of related interest rate swaps.
2 | Fair values are derived from trading quotes by institutions making a market in the securities and estimations of value by those institutions using proprietary models.
3 | On March 15, 2012, holders of our 4.25% Convertible Senior Notes due 2023 (the “4.25% Notes”) may require us to repurchase their notes for cash at par and as such, we included these notes in the current portion of long-term debt on our September 30, 2011 unaudited Consolidated Balance Sheet. Any 4.25% Notes not repurchased on March 15, 2012 will be reclassified to long-term debt.
7.25% Senior Unsecured Notes due 2011 In August 2011, the remaining $36.3 aggregate principal amount of our 7.25% Senior Unsecured Notes due 2011 matured, and we paid $37.6 in cash, including accrued and unpaid interest. Interest Rate Swaps In March 2011, we entered into an interest rate swap agreement related to our 6.25% Senior Unsecured Notes due 2014 (the “2014 Notes”) to effectively convert $100.0 notional amount of our $350.0 2014 Notes from fixed rate to floating rate debt. In April 2011, we entered into an additional interest rate swap agreement related to the 2014 Notes to effectively convert an additional $100.0 notional amount of our 2014 Notes from fixed to floating rate debt. In May 2011, we terminated all of the interest rate swaps related to the 2014 Notes, which were settled for a total of $2.7, received in cash, which included accrued and unpaid interest. Upon termination of these swaps, a debt premium equal to the swaps' fair value of $2.3 was recorded as an adjustment to the carrying value of the debt and will be amortized as a reduction to interest expense over the remaining term of the 2014 Notes, resulting in an annual effective interest rate of 5.8%. Credit Facilities On May 31, 2011, we entered into an amendment and restatement of our credit agreement originally dated as of July 18, 2008 (the “Credit Agreement”), increasing the commitments of the lenders to $1,000.0 from $650.0, and extending the Credit Agreement's expiration to May 31, 2016. Additionally, the amendments modified our financial covenants, and provided additional flexibility with respect to, or eliminated, certain covenants such as restrictions on acquisitions, capital expenditures and restricted payments. In addition, the cost structure was reduced. We were in compliance with all of our covenants in the Credit Agreement as of September 30, 2011. The financial covenants in the Credit Agreement require that we maintain, as of the end of each fiscal quarter, certain financial measures for the four quarters then ended. Because we had received investment-grade ratings from two of the major credit ratings agencies as of June 2011, we are not required to satisfy a minimum EBITDA financial covenant and do not have limitations on restricted payments. The table below sets forth the financial covenants in effect as of September 30, 2011 and thereafter.
|  | Q3 2011 |  | Q4 2011 & Thereafter
Interest coverage ratio (not less than): 1 |  | 5.00x |  | 5.00x
Leverage ratio (not greater than): 2 |  | 3.00x |  | 2.75x
1 | The interest coverage ratio is defined as EBITDA, as defined in the Credit Agreement, to net interest expense plus cash dividends on convertible preferred stock for the four quarters then ended.
2 | The leverage ratio is defined as debt as of the last day of such fiscal quarter to EBITDA, as defined in the Credit Agreement, for the four quarters then ended.
Convertible Senior Notes The conversion rates of our 4.25% Notes and 4.75% Convertible Senior Notes due 2023 (the "4.75% Notes," and, together with the 4.25% Notes, the "Convertible Notes") are subject to adjustment in specified circumstances, including the payment of cash dividends on our common stock. During the second quarter of 2011, the conversion rate for our Convertible Notes was adjusted from 80.5153 to 81.3289 as a result of the cumulative effect of the cash dividends declared and paid on our common stock during the first half of 2011, resulting in a corresponding adjustment of the conversion price from $12.42 to $12.30. There were no additional adjustments required to the conversion rate in the third quarter of 2011. Capped Call In November 2010 we purchased capped call options to hedge the risk of price appreciation on the shares of our common stock into which our 4.75% Notes are convertible. During the second quarter of 2011, the strike price and cap price related to the capped call options were adjusted due to the payment of cash dividends on our common stock. There was no additional adjustment required to the strike price and cap price in the third quarter of 2011. As of September 30, 2011, the options give us the right to purchase up to 16.3 shares of our common stock at a strike price of $12.30 per share (previously $12.42), except that the economic value of the net proceeds of exercising the options will not exceed the difference between the strike price and the adjusted cap price of $18.08 per share (previously $18.26). Convertible Preferred Stock The conversion rate of our 5 1/4% Series B Cumulative Convertible Perpetual Preferred Stock (the "Series B Preferred Stock")is also subject to adjustment in specified circumstances, including the payment of cash dividends on our common stock. During the third quarter of 2011, the conversion rate for our Series B Preferred Stock was adjusted from 73.1904 to 74.4500 as a result of the cumulative effect of the cash dividends declared and paid on our common stock during the first nine months of 2011, resulting in a corresponding adjustment of the conversion price from $13.66 to $13.43.

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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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