XML 149 R13.htm IDEA: XBRL DOCUMENT v2.4.0.8
Credit Facilities
12 Months Ended
Jul. 31, 2013
Credit Facilities [Abstract]  
Credit Facilities

NOTE D  Credit Facilities

 

On December 7, 2012, the Company entered into a new five-year, multi-currency revolving credit facility with a group of banks under which the Company may borrow up to $250.0 million.  The agreement provides that loans may be made under a selection of currencies and rate formulas including Base Rate Loans or LIBOR Rate Loans.  The interest rate on each advance is based on certain market interest rates and leverage ratios.  Facility fees and other fees on the entire loan commitment are payable over the duration of this facility.  This new facility replaced the previous five-year, $250.0 million multicurrency revolving credit facility that was terminated upon entering the new facility.  There were no amounts outstanding at July 31, 2013 and $80.0 million outstanding at July 31, 2012 under these facilities.  At July 31, 2013 and 2012, $237.8 million and $159.1 million, respectively, were available for further borrowing under such facilities.  The amount available for further borrowing reflects a reduction for issued standby letters of credit, as discussed below.  The Company’s multi-currency revolving facility contains financial covenants specifically related to maintaining a certain interest coverage ratio and a certain leverage ratio as well as other covenants that, under certain circumstances, can restrict the Company’s ability to incur additional indebtedness, make investments and other restricted payments, create liens, and sell assets.  As of July 31, 2013, the Company was in compliance with all such covenants.  The Company expects to remain in compliance with these covenants.

 

The Company has two uncommitted credit facilities in the U.S., which provide unsecured borrowings for general corporate purposes.  At July 31, 2013 and 2012, there was $50.0 million and $41.3 million available for use, respectively.  There were no amounts outstanding at July 31, 2013 and $8.7 million outstanding at July 31, 2012.  The weighted average interest rate on the short-term borrowings outstanding at July 31, 2012 was 1.0 percent.

 

The Company has a €100.0 million, or $133.0 million, program for issuing treasury notes for raising short-, medium-, and long-term financing for its European operations.  There were no amounts outstanding on this program at July 31, 2013 or 2012.  Additionally, the Company’s European operations have lines of credit with an available limit of €44.9 million or $59.8 million. There was nothing outstanding on these lines of credit as of July 31, 2013 or 2012.    

 

Other international subsidiaries may borrow under various credit facilities.  There was $9.2 million outstanding under these credit facilities as of July 31, 2013, and $6.4 million as of July 31, 2012.  The weighted average interest rate on these short-term borrowings outstanding at July 31, 2013 and July 31, 2012, was 0.4 percent and 0.5 percent, respectively.