NOTE 11: Debt

(a)

Short-Term Borrowings

The Company had borrowings at October 28, 2012, of $144.9 million under various short-term credit facilities that provided for up to $195.0 million in borrowings and letters of credit, and under which it was required to maintain cash collateral of $35.6 million. Available borrowing was $30.0 million under the Short-Term Financing Program and $20.2 million under the Short-Term Credit Facility as of October 28, 2012.

Short-Term Financing Program

The Short-Term Financing Program provided for up to $150.0 million of borrowing under a commercial paper program supported by a credit agreement secured by receivables from the staffing services business. The program was amended on April 29, 2013, to extend the program expiration date to December 31, 2014 and increase the credit available from $150.0 million to $200.0 million. The program is subject to termination under certain circumstances including the default rate on receivables, as defined, exceeding a specified threshold or the rate of collections on receivables failing to meet a specified threshold. At October 28, 2012, the Company was in compliance with the program covenants.

At October 28, 2012 and October 30, 2011, the Company had outstanding borrowing under the program of $120.0 million and $90.0 million, respectively, and bore a weighted average annual interest rate of 1.5% and 1.8%, respectively, which is inclusive of certain facility and program fees.

ii)

Short-Term Credit Facility

The Short-Term Credit Facility provided for up to $42.0 million of borrowing in various currencies secured by cash collateral covering 105% of certain baseline amounts, of which up to $15.0 million could be used for letters of credit. The facility is subject to a facility fee and borrowings bear various interest rate options calculated using a combination of LIBOR and prime rates plus a margin over those rates. The facility was amended on January 25, 2013, to extend the expiration date to March 31, 2015, increase the borrowing available to $45.0 million, increase the amount that may be used for letters of credit to $25.0 million, and require minimum liquidity of $15.0 million in unrestricted cash or Short-Term Financing Program borrowing availability. The amendment also removed financial ratio covenants and certain limitations previously placed on incurring additional indebtedness, the level of annual capital expenditures, the amount of investments, including business acquisitions and mergers, and the amount of loans that may be made by the Company to its subsidiaries. At October 28, 2012, the Company was in compliance with the facility covenants.

At October 28, 2012 and October 30, 2011 the Company had drawn under the facility $21.9 million and $19.4 million, respectively, in various currencies used to hedge the Company’s net investment in certain foreign subsidiaries and $3.0 million in letters of credit outstanding. At October 28, 2012 and October 30, 2011 borrowings bore a weighted average annual interest rate of 3.1% and 3.8% respectively, inclusive of the facility fee.

(b)

Long-Term Debt

The Company has $9.8 million outstanding at October 28, 2012 under a twenty-year fully amortizing loan that ends on October 1, 2021, which bears interest at 8.2% per annum and requires principal and interest payments of $0.4 million per quarter, secured by a deed of trust on certain land and buildings.

Long-term debt consists of the following (in thousands):


	Year ended
	October 28, 2012		October 30, 2011

8.2% term loan	$	9,801	$	10,509
Less amounts due within one year		768		708

Total long-term debt	$	9,033	$	9,801

Principal payment maturities on long-term debt outstanding at October 28, 2012 are:


Fiscal year	Amount
2013	$	768
2014		834
2015		904
2016		981
2017		1,065
Thereafter		5,249


Total	$	9,801