10. Financing

Short-term borrowings at July 2, 2011 and October 2, 2010 consist of the following:

	July 2,		October 2,
	2011		2010
	(expressed in thousands)
Bank line of credit, monthly U.S. LIBOR plus 45 basis points (0.65% rate in effect at July 2, 2011), maturing July 2011, with optional month-to-month term renewal and loan repricing until 2012	$	40,000	$	40,000

Notes payable, non-interest bearing		240		229

Total short-term borrowings	$	40,240	$	40,229

The Company's credit facility provides for up to $75.0 million for working capital financing, acquisitions, share purchases, or other general corporate purposes and expires in December 2012. At July 2, 2011 and October 2, 2010, outstanding borrowings under the credit facility were $40.0 million. At July 2, 2011, the Company had outstanding letters of credit drawn from the credit facility totaling $12.8 million, leaving approximately $22.2 million of unused borrowing capacity. In order to mitigate its exposure to interest rate increases on certain of its floating rate indebtedness, the Company has entered into floating to fixed interest rate swaps and forward interest rate swaps. As of July 2, 2011 the Company is paying a fixed interest rate on $24.0 million of the outstanding debt and paying a floating interest rate based on U.S. LIBOR plus 45 basis points on the remaining $16.0 million outstanding. At July 2, 2011 and October 2, 2010, under the terms of the credit facility borrowings and interest rate swap agreements, the effective weighted average interest rate applicable to outstanding credit facility borrowings was 2.89%. Subsequent to July 2, 2011, the Company renewed each of the outstanding borrowings on the credit facility for an additional month. The Company intends to renew each of the applicable outstanding borrowings on the credit facility monthly throughout the entire term of the interest rate swap arrangement directly associated with the borrowing. See Note 7 in the Condensed Notes to Consolidated Financial Statements for additional information on the interest rate swaps.