Current Liabilities

Current Portion of Long-Term Debt

The current portion of long-term debt consists of $500 million of 5.40% senior unsecured notes due on March 15, 2012, less the unamortized discount. See Note 5, "Long-Term Obligations - Long-Term Debt," for more information.

Unsecured Revolving Credit Facility

On March 22, 2007 we entered into an agreement with certain institutional lenders for a $500 million unsecured revolving credit facility that was due to expire on March 22, 2012. We terminated this agreement as of February 17, 2012. Advances under the credit facility would have accrued interest at rates that were equal to, at our election, either Citibank’s base rate or the London InterBank Offered Rate (LIBOR) plus a margin that ranged from 0.18% to 0.575% based on our senior debt credit ratings. The agreement included covenants that required us to maintain a ratio of total debt to annual earnings before interest, taxes, depreciation and amortization (EBITDA) of not greater than 3.25 to 1.00 and a ratio of annual EBITDA to interest payable of not less than 3.00 to 1.00. We were in compliance with these covenants at January 31, 2012. We did not borrow under this credit facility.

On February 17, 2012 we entered into a new agreement with certain institutional lenders for a $500 million unsecured revolving credit facility that will expire on February 17, 2017. Advances under the credit facility will accrue interest at rates that are equal to, at our election, either JP Morgan's alternate base rate plus a margin that ranges from 0% to 0.5% or LIBOR plus a margin that ranges from 0.9% to 1.5%. Actual margins under either election will be based on our senior debt credit ratings. The agreement includes covenants that require us to maintain a ratio of total debt to annual earnings before interest, taxes, depreciation and amortization (EBITDA) of not greater than 3.25 to 1.00 and a ratio of annual EBITDA to interest payable of not less than 3.00 to 1.00. We may use amounts borrowed under this credit facility for general corporate purposes, including future acquisitions.

Other Current Liabilities

Other current liabilities were as follows at the dates indicated:



(In millions)	January 31, 2012		July 31, 2011
Reserve for product returns	$	86	$	20
Reserve for rebates	50		11
Current portion of license fee payable	10		10
Current portion of deferred rent	7		7
Interest payable	21		21
Executive deferred compensation plan liabilities	52		50
Other	32		22
Total other current liabilities	$	258	$	141

The balances of several of our other current liabilities, particularly our reserves for product returns and rebates, are affected by the seasonality of our business. See Note 1, “Seasonality.”