External financing

3 Months Ended

Oct. 01, 2011

4. External financing

Short-term debt consists of the following:


	October 1,		July 2,
	2011		2011
	(Thousands)
Bank credit facilities	$	209,007	$	81,951
Revolving credit facility		61,465		—
Borrowings under the accounts receivable securitization program		485,000		160,000
Other debt due within one year		1,475		1,128

Short-term debt	$	756,947	$	243,079

Bank credit facilities consist of various committed and uncommitted lines of credit with financial institutions utilized primarily to support the working capital requirements of foreign operations. The weighted average interest rate on the bank credit facilities was 6.1% and 7.8% at October 1, 2011 and July 2, 2011, respectively.

The Company has a five-year $500,000,000 unsecured revolving credit facility (the “Credit Agreement”) with a syndicate of banks. Under the Credit Agreement, the Company may elect from various interest rate options, currencies and maturities. The Credit Agreement contains certain covenants, all of which the Company was in compliance with as of October 1, 2011. As of October 1, 2011, the borrowings outstanding under the Credit Agreement, which expires in September 2012, are included in “short-term debt” in the preceeding table. In addition, there were $17,102,000 in letters of credit issued under the Credit Agreement which represent a utilization of the Credit Agreement capacity but are not recorded in the consolidated balance sheet as the letters of credit are not debt. Amounts outstanding under the Credit Agreement as of July 2, 2011 were classified as long-term debt and included in “other long-term debt” in the table below.

In August 2011, the Company amended its accounts receivable securitization program (the “Program”) with a group of financial institutions to allow the Company to sell, on a revolving basis, an undivided interest of up to $750,000,000 ($600,000,000 prior to the amendment) in eligible receivables while retaining a subordinated interest in a portion of the receivables. The Program does not qualify for sale treatment and, as a result, any borrowings under the Program are recorded as debt on the consolidated balance sheet. The Program contains certain covenants, all of which the Company was in compliance with as of October 1, 2011. The Program has a one year term that expires in August 2012. Interest on borrowings is calculated using a base rate or a commercial paper rate plus a spread of 0.35%. The facility fee is 0.35%.

Long-term debt consists of the following:


	October 1,			July 2,
	2011			2011
	(Thousands)
5.875% Notes due March 15, 2014	$	300,000		$	300,000
6.00% Notes due September 1, 2015		250,000			250,000
6.625% Notes due September 15, 2016		300,000			300,000
5.875% Notes due June 15, 2020		300,000			300,000
Other long-term debt		3,643			126,512

Subtotal		1,153,643			1,276,512
Discount on notes		(2,870	)		(3,003	)

Long-term debt	$	1,150,773		$	1,273,509

At July 2, 2011, there were $122,093,000 in borrowings outstanding under the Credit Agreement included in “other long-term debt” in the preceeding table and $16,602,000 in letters of credit issued under the Credit Agreement. Amounts outstanding under the Credit Agreement as of October 1, 2011 are classified as short-term debt as the expiration date of the Credit Agreement is September 2012.

At October 1, 2011 the carrying value and fair value of the Company’s debt was $1,907,720,000 and $2,022,891,000, respectively. Fair value was estimated primarily based upon quoted market prices.