DEBT | 6 Months Ended |
Jun. 30, 2014 |
DEBT [Abstract] | ' |
DEBT | ' |
Note 7: Debt |
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Debt is summarized as follows: |
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| | | 30-Jun | | | 31-Dec | | | 30-Jun | |
in thousands | 2014 | | | 2013 | | | 2013 | |
Short-term Debt | | | | | | | | |
Bank line of credit | $ 0 | | | $ 0 | | | $ 100,000 | |
Total short-term debt | $ 0 | | | $ 0 | | | $ 100,000 | |
Long-term Debt | | | | | | | | |
10.125% notes due 2015 1 | $ 151,446 | | | $ 151,897 | | | $ 152,317 | |
6.50% notes due 2016 2 | 127,445 | | | 511,627 | | | 513,369 | |
6.40% notes due 2017 3 | 218,582 | | | 349,907 | | | 349,897 | |
7.00% notes due 2018 4 | 399,794 | | | 399,772 | | | 399,751 | |
10.375% notes due 2018 5 | 248,934 | | | 248,843 | | | 248,757 | |
7.50% notes due 2021 6 | 600,000 | | | 600,000 | | | 600,000 | |
7.15% notes due 2037 7 | 239,566 | | | 239,561 | | | 239,557 | |
Medium-term notes | 6,000 | | | 6,000 | | | 6,000 | |
Industrial revenue bonds | 14,000 | | | 14,000 | | | 14,000 | |
Other notes | 770 | | | 806 | | | 933 | |
Total long-term debt including current maturities | $ 2,006,537 | | | $ 2,522,413 | | | $ 2,524,581 | |
Less current maturities | 158 | | | 170 | | | 161 | |
Total long-term debt | $ 2,006,379 | | | $ 2,522,243 | | | $ 2,524,420 | |
Estimated fair value of long-term debt | $ 2,312,178 | | | $ 2,820,399 | | | $ 2,756,202 | |
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1 | Includes an increase for the unamortized deferred gain realized upon the August 2011 settlement of interest rate swaps, as follows: June 30, 2014 — $1,587 thousand, December 31, 2013 — $2,082 thousand and June 30, 2013 — $2,543 thousand. Additionally, includes decreases for unamortized discounts, as follows: June 30, 2014 — $141 thousand, December 31, 2013 — $185 thousand and June 30, 2013 — $226 thousand. The effective interest rate for these notes is 9.58%. | | | | | | | | | |
2 | Includes an increase for the unamortized deferred gain realized upon the August 2011 settlement of interest rate swaps, as follows: June 30, 2014 — $2,444 thousand, December 31, 2013 — $11,627 thousand and June 30, 2013 — $13,369 thousand. The effective interest rate for these notes is 6.00%. | | | | | | | | | |
3 | Includes decreases for unamortized discounts, as follows: June 30, 2014 — $51 thousand, December 31, 2013 — $93 thousand and June 30, 2013 — $103 thousand. The effective interest rate for these notes is 7.41%. | | | | | | | | | |
4 | Includes decreases for unamortized discounts, as follows: June 30, 2014 — $206 thousand, December 31, 2013 — $228 thousand and June 30, 2013 — $249 thousand. The effective interest rate for these notes is 7.87%. | | | | | | | | | |
5 | Includes decreases for unamortized discounts, as follows: June 30, 2014 — $1,066 thousand, December 31, 2013 — $1,157 thousand and June 30, 2013 — $1,243 thousand. The effective interest rate for these notes is 10.63%. | | | | | | | | | |
6 | The effective interest rate for these notes is 7.75%. | | | | | | | | | |
7 | Includes decreases for unamortized discounts, as follows: June 30, 2014 — $622 thousand, December 31, 2013 — $627 thousand and June 30, 2013 — $631 thousand. The effective interest rate for these notes is 8.05%. | | | | | | | | | |
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Our long-term debt is presented in the table above net of unamortized discounts from par and unamortized deferred gains realized upon settlement of interest rate swaps. Discounts and deferred gains are being amortized using the effective interest method over the respective terms of the notes. |
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The estimated fair value of long-term debt presented in the table above was determined by averaging the asking price quotes for the notes. The fair value estimates were based on Level 2 information (as defined in Note 5) available to us as of their respective balance sheet dates. Although we are not aware of any factors that would significantly affect the estimated fair value amounts, such amounts have not been comprehensively revalued since those dates. |
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There were no material scheduled debt payments during the first six months of 2014. However, as described below, we purchased $506,366,000 principal amount of outstanding debt through a tender offer in the first quarter of 2014. Scheduled debt payments during 2013 included $10,000,000 in January to retire the 8.70% medium-term note and $140,444,000 in June to retire the 6.30% notes. |
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In March 2014, we purchased $506,366,000 principal amount of outstanding debt through a tender offer as follows: $374,999,000 of 6.50% notes due in 2016 and $131,367,000 of 6.40% notes due in 2017. This debt purchase was funded by the sale of our cement and concrete businesses in the Florida area as described in Note 16. The March 2014 debt purchases cost $579,659,000, including a $71,829,000 premium above the principal amount of the notes and transaction costs of $1,464,000. The premium primarily reflects the trading prices of the notes relative to par prior to the tender offer commencement. Additionally, we recognized a net benefit of $344,000 associated with the acceleration of a proportional amount of unamortized discounts, deferred gains, deferred financing costs and amounts accumulated in OCI. The combined charge of $72,949,000 is presented in the accompanying Condensed Consolidated Statement of Comprehensive Income as a component of interest expense for the six month period ended June 30, 2014. |
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Additionally, in March 2014, we amended our $500,000,000 line of credit to, among other things, extend the term from March 2018 to March 2019, eliminate the borrowing capacity governor of eligible accounts receivable and eligible inventory, and provide for the line of credit to become unsecured upon achievement of certain credit metrics and/or credit ratings. Until such metrics/ratings are achieved, the line of credit is secured by accounts receivable and inventory. As of June 30, 2014, our available borrowing capacity was $446,732,000. |
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Borrowings under the line of credit bear interest at a rate determined at the time of borrowing equal to the lower of LIBOR plus a margin ranging from 1.50% to 2.25%, or an alternative rate derived from the lender’s prime rate, based on our total debt to EBITDA ratio. Borrowings on our line of credit are classified as short-term due to our intent to repay any borrowings within twelve months. As of June 30, 2014, the applicable margin for LIBOR based borrowing was 2.00%. |
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