part iI / item 7 At December 31, 2012 and 2011, we had total debt of $400 million. Net debt improved by $179 million to a net cash position (cash less debt) of $24 million at December 31, 2012, primarily reflecting strong cash flow from operations and proceeds from divestitures. The net debt to net capitalization ratio was (2.6%) at December 31, 2012, compared to 15.9% at December 31, 2011. In December 2012, we obtained $600 million of bank loan commitments in support of our pending acquisition of MEI. The commitments support a $200 million expansion of our current multi-year credit facility, which expires in May 2017, and an addi- tional $400 million 364-day credit facility. In May 2012, we entered into a five-year, $300 million Amended and Restated Credit Agreement (as subsequently amended, the “facility”), which is due to expire in May 2017. The facility allows us to borrow, repay, or to the extent permitted by the agreement, pre- pay and re-borrow at any time prior to the stated maturity date, and the loan proceeds may be used for general corporate purposes including financing for acquisitions. Interest is based on, at our option, (1) a LIBOR-based formula that is dependent in part on the Company’s credit rating (LIBOR plus 105 basis points as of the date of this Report; up to a maximum of LIBOR plus 147.5 basis points), or (2) the greatest of (i) the JPMorgan Chase Bank, N.A.‘s prime rate, (ii) the Federal Funds rate plus 50 basis points or (iii) an adjusted LIBOR rate plus 100 basis points. The facility was not used in 2012 or 2011 and was only used for letter of credit purposes in 2010. The facility contains customary affirmative and negative covenants for credit facilities of this type, including the absence of a material adverse effect and limitations on us and our subsidiaries with respect to indebtedness, liens, mergers, consolidations, liquidations and dissolutions, sales of all or substantially all assets, transactions with affiliates and hedging arrangements. The facility also provides for customary events of default, including failure to pay principal, interest or fees when due, failure to comply with covenants, the fact that any representation or warranty made by us is false in any material respect, default under certain other indebtedness, certain insolvency or receivership events affecting us and our subsidiaries, certain ERISA events, material judgments and a change in control. The agreement contains a leverage ratio cove- nant requiring a ratio of total debt to total capitalization of less than or equal to 65%. At December 31, 2012, our ratio was 30%. In November 2006, we issued notes having an aggregate principal amount of $200 million. The notes are unsecured, senior obliga- tions that mature on November 15, 2036 and bear interest at 6.55% per annum, payable semi-annually on May 15 and November 15 of each year. The notes have no sinking fund requirement but may be redeemed, in whole or in part, at our option. These notes do not contain any material debt covenants or cross default provisions. If there is a change in control, and if as a consequence the notes are rated below investment grade by both Moody’s Investors Service and Standard & Poor’s, then holders of the notes may require us to repurchase them, in whole or in part, for 101% of the principal amount plus accrued and unpaid interest. Debt issuance costs are deferred and included in Other assets and then amortized as a component of interest expense over the term of the notes. Including debt issuance cost amortization, these notes have an effective annualized interest rate of 6.67%. In September 2003, we issued notes having an aggregate principal amount of $200 million. The notes are unsecured, senior obliga- tions that mature on September 15, 2013, and bear interest at 5.50% per annum, payable semi-annually on March 15 and Sep- tember 15 of each year. These notes have been presented in the accompanying consolidated balance sheet as a long-term liability due to our intent and ability to refinance these notes on a long-term basis. The notes have no sinking fund requirement but may be redeemed, in whole or part, at our option. These notes do not con- tain any material debt covenants or cross default provisions. Debt issuance costs are deferred and included in Other assets and then amortized as a component of interest expense over the term of the notes. Including debt issuance cost amortization, these notes have an effective annualized interest rate of 5.70%. All outstanding senior, unsecured notes were issued under an indenture dated as of April 1, 1991. The indenture contains certain limitations on liens and sale and lease-back transactions. At December 31, 2012, we had open standby letters of credit of $30 million issued pursuant to a $60 million uncommitted Letter of Credit Reimbursement Agreement and certain other credit lines, substantially all of which expire in 2014. As of December 31, 2012, our senior unsecured debt was rated BBB by Standard & Poor’s and Baa2 by Moody’s Investors Service. We believe that these ratings afford us adequate access to the public and private markets for debt. Under various agreements, we are obligated to make future cash payments in fixed amounts. These include payments under our long-term debt agreements and rent payments required under operating lease agreements. The following table summarizes our fixed cash obligations as of December 31, 2012: (1) Excludes original issue discount. (2) As of December 31, 2012, we classified the notes which mature in 2013 as long-term debt due to the our intent to refinance on a long-term basis and the ability to utilize our $300 million Credit Facility. (3) Pension benefits are funded by the respective pension trusts. The postretirement benefit component of the obligation is approximately $1 million per year for which there is no trust and will be directly funded by us. Pension and postretirement benefits are included through 2022. (4) As the timing of future cash outflows is uncertain, the following long-term liabilities (and related balances) are excluded from the above table: Long-term asbestos liability ($704 million) and long-term environmental liability ($34 million). Contractual Obligations Credit Ratings Financing Arrangements 25 Payment due by Period (in thousands) Total 2013 2014 -2015 2016 -2017 After 2018 Long-term debt(1) (2) $ 400,000 $200,000 $ — $ — $200,000 Fixed interest payments 325,400 24,100 26,200 26,200 248,900 Operating lease payments 49,164 14,621 18,872 10,114 5,557 Purchase obligations 89,961 86,801 2,792 255 113 Pension and postretirement benefits(3) 452,563 37,297 79,906 86,805 248,555 Other long-term liabilities reflected on Consolidated Balance Sheets(4) — — — — — Total $1,317,088 $ 362,819 $127,770 $123,374 $ 703,125