LONG-TERM DEBT AND INTEREST RATE AGREEMENT

Long-term debt at November 30, 2011 and 2010 consisted of the following:



	2011		2010
Multicurrency Revolving Credit Agreement	$	—	$	—
Industrial Revenue Bonds, at a weighted average interest rate of 0.35% and 0.50%, respectively	15,820		15,820
Note payable, due March 2012, at a fixed interest rate of 6.00% at both year ends	1,196		1,109
Other long-term debt	254		548
Total long-term debt	$	17,270	$	17,477

Current portion of long-term debt	$	1,289	$	146
Long-term debt, less current portion	$	15,981	$	17,331

On December 18, 2007, the Company entered into a five-year multicurrency revolving credit agreement (“Credit Facility”) with a group of financial institutions under which it may borrow up to $250,000 under a selection of currencies and rate formulas. The Credit Facility interest rate is based upon, at the Company’s election, either a defined Base Rate or the London Interbank Offered Rate (“LIBOR”) plus or minus applicable margins. Commitment fees, letter of credit fees and other fees are also payable as provided in the Credit Facility. At November 30, 2011, there were no borrowings outstanding on the Credit Facility. The Credit Facility includes a $75,000 letter of credit subline, against which $16,012 and $16,031 in letters of credit had been issued at November 30, 2011 and 2010, respectively. The Company anticipates entering into a new revolving credit agreement prior to the December 18, 2012 expiration of the current Current Facility.

Borrowings under the Credit Facility are unsecured, but are guaranteed by certain subsidiaries of the Company. The agreement contains certain restrictive covenants that include limiting new borrowings, maintaining minimum interest coverage and restricting certain changes in ownership.

As of November 30, 2011 and 2010, the industrial revenue bonds include $7,410 issued in cooperation with the Campbellsville-Taylor County Industrial Development Authority (Kentucky) due May 1, 2031 and $8,410 re-issued in cooperation with the South Dakota Economic Development Finance Authority due February 1, 2016. The interest rates on these bonds are reset weekly.

Required principal maturities of long-term debt as of year-end 2011 for the next five fiscal years ending November 30 are as follows:



2012	$	1,289
2013	42
2014	11
2015	8
2016	8,413
Thereafter	7,507

On January 2, 2008, the Company entered into a fixed rate interest swap agreement (“the Swap Agreement”) to manage its interest rate exposure on certain amounts outstanding under the Credit Facility. The Company’s accounting policies for derivatives are discussed in Note A. The Swap Agreement expired January 1, 2010. The Swap Agreement provided for the Company to receive interest at floating rates based on LIBOR and pay a 3.93% fixed interest rate plus an applicable margin on a notional amount of $100,000. Payments pursuant to the Swap Agreement were settled on a net basis quarterly. Hedge accounting was not applied to the Swap Agreement and therefore, unrealized gains or losses were recorded in Interest expense in the Consolidated Statements of Earnings. Periodic settlement payments or receipts were recorded as a component of cash flows from operating activities in the Consolidated Statements of Cash Flows.

The following table reflects the loss and net settlement payments on the Swap Agreement for the years ended November 30, 2011, 2010 and 2009.



Derivatives Not Designated as Hedging Instruments	Location	Amount
		2011		2010		2009
Fixed rate interest swap agreement unrealized losses	Interest expense	$	—	$	—	$	1,123
Fixed rate interest swap agreement net settlement payments	Cash flows from operating activities	—		961		2,169