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## NOTE 12 Debt 

## Debt Maturing Within One Year: 

Debt maturing within one year consists of the following: 

<img src='content_image/213229.jpg'>

Short-term debt consisted of foreign credit lines at December 31, 2010 and 2009. We often provide parent-company guarantees to lending institutions providing credit to our foreign subsidiaries. 

## Long-term Debt: 

Long-term debt consists of the following: 

<img src='content_image/213228.jpg'>

On November 30, 2009, we issued $300 million aggregate principal amount of 5.2% Senior Notes due 2019. The net proceeds from the offering were used to pay down existing indebtedness under our revolving credit agreements and for general corporate purposes. 

At December 31, 2010 and 2009 we had no borrowings, in revolving credit facility borrowings under the European Credit Agreement, resulting in available funds of $289.1 million and $315.4 million, respectively. 

We had no borrowings under our Domestic Credit Agreement at December 31, 2010 and 2009. Letters of credit outstanding under the Domestic Credit Agreement totaled $130.4 million and $153.2 million at December 31, 2010 and 2009, respectively. Th  erefore, available funds under the Domestic Credit Agreement were $469.6 million and $446.8 million at December 31, 2010 and 2009, respectively. 

## Maturities of long-term debt 

Maturities of long-term debt outstanding, excluding discounts, at December 31, 2010, are $116.4 million in 2011, $21.6 million in 2012, $6.5 million in 2013, $32.7 million in 2014, $0.2 million in 2015 and $443.1 million thereafter. 

## Covenants 

Among other restrictions, the Domestic Credit Agreement and the European Credit Agreement contain financial covenants applicable to FMC and its consolidated subsidiaries related to leverage (measured as the ratio of debt to adjusted earnings) and interest coverage (measured as the ratio of adjusted earnings to interest expense). Our actual leverage for the four consecutive quarters ended December 31, 2010 was 1.2 which is below the maximum leverage of 3.5. Our actual interest coverage for the four consecutive quarters ended December 31, 2010 was 14.9 which is above the minimum interest coverage of 3.5. We were in compliance with all covenants at December 31, 2010. 

## Compensating Balance Agreements 

We maintain informal credit arrangements in many foreign countries. Foreign lines of credit, which include overdraft facilities, typically do not require the maintenance of compensating balances, as credit extension is not guaranteed but is subject to the availability of funds. 

