NOTE 11: Debt

(a)

Short-Term Borrowings

The Company had borrowings at November 3, 2013, of $167.3 million under various short-term credit facilities that provided for up to $245.0 million in borrowings and letters of credit, and under which it was required to maintain cash collateral of $31.8 million.

Available borrowing was $25.5 million under the Short-Term Financing Program and $19.7 million under the Short-Term Credit Facility as of November 3, 2013.

Short-Term Financing Program

The Short-Term Financing Program provided for up to $200.0 million of borrowing, with available borrowing based on eligible receivable levels, supported by a credit agreement secured by receivables from the staffing services business that are sold to a wholly-owned, consolidated, bankruptcy-remote subsidiary and are available first to satisfy the lender. 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. On August 28, 2013, the benchmark interest rate for which interest is charged on the sale of receivables was changed from commercial paper to a LIBOR index. 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 November 3, 2013, the Company was in compliance with the program covenants.

At November 3, 2013 and October 28, 2012, the Company had outstanding borrowing under the program of $142.0 million and $120.0 million, respectively, and bore a weighted average annual interest rate of 1.5% in fiscal 2013 and 2012 which is inclusive of certain facility and program fees.

ii)

Short-Term Credit Facility

The Short-Term Credit Facility provided for up to $45.0 million of borrowing in various currencies secured by cash collateral covering 105% of certain baseline amounts, of which up to $25.0 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 from $42.0 million to $45.0 million, increase the amount that may be used for letters of credit from $15.0 million to $25.0 million, and require minimum liquidity of $15.0 million in combined unrestricted cash and 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 November 3, 2013, the Company was in compliance with the facility covenants.

At November 3, 2013 and October 28, 2012 the Company had drawn under the facility $22.3 million and $21.9 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 November 3, 2013 and October 28, 2012 borrowings bore a weighted average annual interest rate of 2.2% and 3.1% respectively, inclusive of the facility fee.

(b)

Long-Term Debt

The Company has $9.0 million outstanding at November 3, 2013 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
	November 3, 2013		October 28, 2012

8.2% term loan	$	8,966	$	9,801
Less amounts due within one year		839		768

Total long-term debt	$	8,127	$	9,033

Principal payment maturities on long-term debt outstanding at November 3, 2013 are (in thousands):


Fiscal year	Amount
2014	$	839
2015		911
2016		988
2017		1,072
2018		1,164
Thereafter		3,992

Total	$	8,966