Aetna 2012 Annual Report Download - page 126
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Annual Report- Page 120
14. Debt
The carrying value of our long-term debt at December 31, 2012 and 2011 was as follows:
(Millions) 2012 2011
Senior notes, 6.0%, due 2016 $ 748.5 $ 748.0
Senior notes, 1.75%, due 2017 248.6 —
Senior notes, 1.5%, due 2017 497.7 —
Senior notes, 6.5%, due 2018 494.8 499.1
Senior notes, 3.95%, due 2020 743.4 742.6
Senior notes, 4.125%, due 2021 494.1 493.4
Senior notes, 2.75%, due 2022 983.4 —
Senior notes, 6.625%, due 2036 769.7 798.7
Senior notes, 6.75%, due 2037 529.5 695.9
Senior notes, 4.5%, due 2042 479.3 —
Senior notes, 4.125%, due 2042 492.3 —
Total long-term debt $ 6,481.3 $ 3,977.7
In 2012, we repurchased approximately $200 million of par value of our outstanding senior notes, including
repurchases of our 6.75% senior notes due 2037, 6.625% senior notes due 2036 and 6.5% senior notes due 2018,
and recorded a loss on the early extinguishment of this long-term debt of $55.2 million ($84.9 million pretax).
At December 31, 2012, we did not have any commercial paper outstanding. At December 31, 2011 we had
approximately $426 million of commercial paper outstanding with a weighted average interest rate of .38%.
We paid $260 million, $254 million and $243 million in interest in 2012, 2011 and 2010, respectively.
Long-Term Debt and Interest Rate Swaps
During June and July of 2012, we entered into two interest rate swaps with an aggregate notional value of $375
million. We designated these swaps as cash flow hedges against interest rate exposure related to the forecasted
future issuance of fixed-rate debt to refinance long-term debt maturing in June 2016. At December 31, 2012, these
interest rate swaps had a pretax fair value gain of approximately $8.2 million, which was reflected net of tax in
accumulated other comprehensive loss within shareholders' equity.
In November 2012, we issued $500 million of 1.50% senior notes due 2017, $1.0 billion of 2.75% senior notes due
2022 and $500 million of 4.125% senior notes due 2042 (collectively, the “2012 Coventry-related senior notes”), in
connection with the proposed acquisition of Coventry. In the period from August 2012 through October 2012, prior
to issuing the 2012 Coventry-related senior notes, we entered into 16 interest rate swaps with an aggregate notional
value of $2.0 billion and designated these swaps as cash flow hedges against interest rate exposure related to the
forecasted future issuance of that fixed-rate debt. We terminated the swaps prior to issuing the 2012 Coventry-
related senior notes and paid an aggregate of $4.8 million to the swap counterparties upon termination of the swaps.
The related $4.8 million pretax loss is recorded in accumulated other comprehensive loss, net of tax, and is being
amortized as an increase to interest expense over the first 10, 20 and 60 semi-annual interest payments associated
with the respective 2012 Coventry-related senior notes.