NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (thousands of dollars unless otherwise indicated) During 2001, the Company entered into four sepa- rate interest rate swap contracts and entered into an additional two interest rate swap contracts in 2002. All six interest rate swap contracts were with a bank to hedge against changes in the fair value of a portion of the Company’s 6.85% Notes. Each interest rate swap contract had a notional amount of $25,000. The Com- pany agreed to receive interest at a fixed rate of 6.85% and pay interest at six-month London Interbank Offered Rates plus points that varied by contract. These con- tracts were designated as perfect fair value hedges of the 6.85% Notes. Accordingly, changes in the fair value of these contracts were recorded as assets or liabilities and offset changes in the carrying value of the 6.85% Notes. During 2002, the Company unwound all six of the interest rate swap contracts and received a net premium of $4,762 from the bank for discontinuation of the con- tracts. The net premium increased the carrying amount of the 6.85% Notes and is being amortized to income over the remaining maturity of the Notes. There were no interest rate swap agreements outstanding at December 31, 2004 and 2002. The Company has a five-year senior unsecured revolving credit agreement. The current agreement, aggregating $650,000, was effective July 19, 2004  and expires July 20, 2009. There were no borrowings outstanding under the revolving credit agreement during all years presented. At December 31, 2004, borrowings outstanding under the commercial paper program totaled $231,203 and were included in Short-term borrowings on the balance sheet. The weighted-average interest rate related to these borrowings was 2.3% at December 31, 2004. There were no borrowings outstanding under the Company’s commercial paper program at December 31, 2003 and 2002, respectively. The Company uses the revolving credit agreement to satisfy its commercial paper program’s dollar for dollar liquidity requirement. Effective July 19, 2004, the aggregate maximum bor- rowing capacity under the revolving credit agreement limits the commercial paper program to a maximum borrowing capability of $650,000. On October 6, 1997, the Company issued $50,000 of debt securities consisting of 5.5% notes, due October 15, 2027, with provisions that the holders, individually or in the aggregate, may exercise a put option annually on October 15th that would require the Company to repay the securities. Prior to 2002, individual debt security holders exercised put options requiring the The Company is involved with environmental inves- tigation and remediation activities at some of its current and former sites (including sites which were previously owned and/or operated by businesses acquired by the Company). In addition, the Company, together with other parties, has been designated a potentially responsi- ble party under federal and state environmental protec- tion laws for the investigation and remediation of environmental contamination and hazardous waste at a number of third-party sites, primarily Superfund sites. In general, these laws provide that potentially responsible parties may be held jointly and severally liable for inves- The operations of the Company, like those of other companies in our industry, are subject to various feder- al, state and local environmental laws and regulations. These laws and regulations not only govern current operations and products, but also impose potential lia- bility on the Company for past operations. Management expects environmental laws and regulations to impose increasingly stringent requirements upon the Company and the industry in the future. Management believes that the Company conducts its operations in compliance with applicable environmental laws and regulations and has implemented various programs designed to protect the environment and promote continued compliance. On August 18, 1998, the Company filed a universal shelf registration statement with the Securities and Exchange Commission to issue debt securities, common stock and warrants up to $1,500,000. The registration was effective September 8, 1998. There were no bor- rowings outstanding or issuance of common stock or warrants under this registration at December 31, 2004, 2003 and 2002. On December 8, 1997, the Company filed a shelf reg- istration with the Securities and Exchange Commission covering $150,000 of unsecured debt securities with maturities greater than nine months from the date of issue. The registration was effective December 24, 1997. The Company may issue these securities from time to time in one or more series and will offer the securities on terms determined at the time of sale. There were no borrowings outstanding under this registration at December 31, 2004, 2003 and 2002. Company to repay $46,905 of these debt securities. The remaining balance of these debt securities of $3,095 was included in Current portion of long-term debt on the balance sheets at December 31, 2004, 2003 and 2002. NOTE 9—OTHER LONG-TERM LIABILITIES 60