Debt

Short-term borrowings, including current portion of long-term debt, consists of the following:



	September 29, 2012		December 31, 2011
6.875% senior notes, due 2013	$	337,022	$	—
Short-term borrowings in various countries	42,448		33,843
	$	379,470	$	33,843

Short-term borrowings in various countries are primarily utilized to support the working capital requirements of certain international operations. The weighted average interest rate on these borrowings at September 29, 2012 and December 31, 2011 was 3.6% for both periods.

Long-term debt consists of the following:



	September 29, 2012		December 31, 2011
Revolving credit facility	$	94,000	$	74,000
Asset securitization program	235,000		280,000
6.875% senior notes, due 2013	—		341,937
3.375% notes, due 2015	258,414		260,461
6.875% senior debentures, due 2018	198,817		198,660
6.00% notes, due 2020	299,934		299,927
5.125% notes, due 2021	249,337		249,278
7.5% senior debentures, due 2027	197,995		197,890
Other obligations with various interest rates and due dates	28,479		25,670
	$	1,561,976	$	1,927,823

The 7.5% senior debentures are not redeemable prior to their maturity. The 6.875% senior notes, 3.375% notes, 6.875% senior debentures, 6.00% notes, and 5.125% notes may be called at the option of the company subject to "make whole" clauses.

The estimated fair market value, using quoted market prices, is as follows:



	September 29, 2012		December 31, 2011
6.875% senior notes, due 2013	$	345,400	$	352,000
3.375% notes, due 2015	260,000		250,000
6.875% senior debentures, due 2018	236,000		216,000
6.00% notes, due 2020	342,000		315,000
5.125% notes, due 2021	272,500		247,500
7.5% senior debentures, due 2027	242,000		244,000

The carrying amount of the company's short-term borrowings in various countries, revolving credit facility, asset securitization program, and other obligations approximate their fair value.

The company has a $1,200,000 revolving credit facility, maturing in August 2016. This facility may be used by the company for general corporate purposes including working capital in the ordinary course of business, letters of credit, repayment, prepayment or purchase of long-term indebtedness and acquisitions, and as support for the company's commercial paper program, as applicable. Interest on borrowings under the revolving credit facility is calculated using a base rate or a euro currency rate plus a spread based on the company's credit ratings (1.275% at September 29, 2012). The facility fee related to the revolving credit facility is .225%. The company had outstanding borrowings under the revolving credit facility of $94,000 and $74,000 at September 29, 2012 and December 31, 2011, respectively.

The company has a $775,000 asset securitization program collateralized by accounts receivable of certain of its United States subsidiaries, maturing in December 2014. The asset securitization program is conducted through Arrow Electronics Funding Corporation ("AFC"), a wholly-owned, bankruptcy remote subsidiary. The asset securitization program does not qualify for sale treatment. Accordingly, the accounts receivable and related debt obligation remain on the company's consolidated balance sheets. Interest on borrowings is calculated using a base rate or a commercial paper rate plus a spread, which is based on the company's credit ratings (.40% at September 29, 2012). The facility fee is .40%.

At September 29, 2012 and December 31, 2011, the company had $235,000 and $280,000, respectively, in outstanding borrowings under the asset securitization program, which was included in "Long-term debt" in the company's consolidated balance sheets, and total collateralized accounts receivable of approximately $1,461,734 and $1,562,613, respectively, were held by AFC and were included in "Accounts receivable, net" in the company's consolidated balance sheets. Any accounts receivable held by AFC would likely not be available to other creditors of the company in the event of bankruptcy or insolvency proceedings before repayment of any outstanding borrowings under the asset securitization program.

Both the revolving credit facility and asset securitization program include terms and conditions that limit the incurrence of additional borrowings, limit the company's ability to pay cash dividends or repurchase stock, and require that certain financial ratios be maintained at designated levels. The company was in compliance with all covenants as of September 29, 2012 and is currently not aware of any events that would cause non-compliance with any covenants in the future.

Interest and other financing expense, net, includes interest and dividend income of $3,392 and $4,627 for the third quarter and first nine months of 2012 and $2,224 and $5,003 for the third quarter and first nine months of 2011, respectively.