In January $2012,$ we paid the entire $$350\mathrm{.}0$ million of our $6\mathrm{.}375\%$ Senior Notes at maturity.

What amount does Progressive report for long$-$term debt on its balance sheet of $2011?$

Why is there a difference between the fair value and the carrying value of Progressive's long$-$

term debt in $2011?$ What are the plausible reasons for the difference between fair value and

carrying value of long$-$term debt?

Were the $6\mathrm{.}375\%$ notes originally issued at par, at a discount or at a premium? How do you

know?

What is the amount of the unamortized discount on the $7\%$ notes as of December $31,2011?$

What is the amount of discount amortized for this note in $2011?$

What cash interest payment did Progressive make for the $\frac{65}{8}$ notes in $2011?$ What interest

expense did Progressive record for these notes during $2011?$ Assume for this question that

Progressive pays interest annually.

If Progressive were to repurchase all of its bonds on January $1,2012,$ how would the income

statement be affected?

How much does the company owe under the line of credit with PNC Bank at year end? Why

does Progressive discuss this in its debt footnote?

What is the current portion of long$-$term debt at December $31,2011?$

Progressive provides a schedule of the maturities of long$-$term debt in the footnote? Why is this

information important in the analysis? What do you see in Progressive's case? What additional

information you need to perform a conclusive analysis of its debt situation?Progressive Corporation $($a property and casualty insurance company$)$ reported the following in its

$2011$ annual report:

$2011$

$2010$

$6\mathrm{.}375\%$ Senior Notes

due $2012($issued:

$$350\mathrm{.}0,$ December

$$350\mathrm{.}0$

$$350\mathrm{.}5$

$$349\mathrm{.}6$

$$369\mathrm{.}3$

$7\%$ Notes due $2013$

$($issued: $$150\mathrm{.}0,$

$149\mathrm{.}7$

$162\mathrm{.}4$

$149\mathrm{.}6$

$165\mathrm{.}0$

October $1993)$

$3\mathrm{.}75\%$ Senior Notes

due $2021($issued:

$497\mathrm{.}0$

$525\mathrm{.}3$

$0\mathrm{.}0$

$0\mathrm{.}0$

$$500\mathrm{.}0,$ August $2011)$

$65\%$ Senior Notes

due $2029($issued:

$295\mathrm{.}0$

$364\mathrm{.}4$

$294\mathrm{.}8$

$329\mathrm{.}9$

$$300\mathrm{.}0,$ March $1999)$

$6\mathrm{.}25\%$ Senior Notes

due $2032($issued:

$$400\mathrm{.}0,$ November

$394\mathrm{.}4$

$492\mathrm{.}4$

$394\mathrm{.}2$

$433\mathrm{.}3$

$6\mathrm{.}70\%$ Fixed$-$to$-$

Floating Rate Junior

Subordinated

Debentures due $2067$

$($issued: $$1,000\mathrm{.}0,$

$769\mathrm{.}7$

$770\mathrm{.}0$

$808\mathrm{.}2$

June $2007$;

outstanding $$762\mathrm{.}1$

and $$777\mathrm{.}1)$

$$2,442\mathrm{.}1$

$$2,664\mathrm{.}7$

$$1,958\mathrm{.}2$

$$2,105\mathrm{.}7$