H. Long-Term Debt and Financing Arrangements

At July 2, 2011 and January 1, 2011, long-term debt and financing arrangements are as follows (in millions):


	Interest Rate	2011		2010
Notes payable due 2011	7.13%	$	-	$	409.2
Notes payable due 2012	4.90%		206.8		208.4
Convertible notes payable due in 2012	3 month LIBOR less 3.50%		310.5		305.1
Notes payable due 2013	6.15%		260.8		260.8
Notes payable due 2014	4.75%		310.8		307.9
Notes payable due 2014	8.95%		397.0		405.3
Notes payable due 2016	5.75%		320.2		316.0
Notes payable due 2028	7.05%		168.0		168.5
Notes payable due in 2018 (junior subordinated)	4.25%		632.5		632.5
Notes payable due 2040	5.20%		399.7		399.7
Other, payable in varying amounts through 2021	0.00% – 6.62%		39.7		20.8

Total long-term debt, including current maturities		$	3,046.0	$	3,434.2
Less: Current maturities of long-term debt			(317.0)		(416.1)

Long-term debt		$	2,729.0	$	3,018.1

In May 2011, the Company repaid its $400 million notes payable due 2011 with proceeds from additional borrowings of commercial paper. At July 2, 2011 the Company has $626.6 million outstanding against its $1.5 billion commercial paper program.

On March 11, 2011, the Company entered into a new four year $1.2 billion committed credit facility (the “Credit Agreement”). In connection with entering into the Credit Agreement the Company terminated the existing $800.0 million Amended and Restated Credit Agreement. Additionally, the $700.0 million 364-Day Credit Agreement dated as of March 12, 2010 expired in accordance with its terms on March 11, 2011. Borrowings under the Credit Agreement may include U.S. Dollars up to the $1.2 billion commitment or in Euro or Pounds Sterling subject to a foreign currency sublimit of $400.0 million and bear interest at a floating rate dependent upon the denomination of the borrowing. Repayments must be made on March 11, 2015 or upon an earlier termination date of the Credit Agreement, at the election of the Company. Under the terms of the Credit Agreement, the Company must maintain an interest coverage ratio, defined as earnings before interest, taxes, depreciation and amortization (“EBITDA”) to interest expense, subject to certain adjustments, of not less than 3.5 to 1.0 for any period of four consecutive quarters. The Company has not drawn on the commitments provided by the Credit Agreement. This credit facility is designed to be a liquidity back-stop for the Company’s $1.5 billion commercial paper program.

In January 2009, the Company entered into fixed-to-floating interest rate swaps on its $200.0 million notes payable due in 2012 and $250.0 million notes payable due in 2013. The Company previously had fixed-to-floating interest rate swaps on these notes outstanding that were terminated in 2008. The $6.8 million adjustment to the carrying value of the $200.0 million 2012 notes at July 2, 2011 pertains to the unamortized gain on the terminated swap as well as the fair value adjustment of the new swap. At July 2, 2011, the carrying value of the $250.0 million notes payable due 2013 includes $11.0 million pertaining to the unamortized gain on the terminated swap as well as the fair value adjustment of the new swap offset by $0.2 million unamortized discount on the notes.

In December 2010, the Company entered into a fixed-to-floating interest rate swap on its $300.0 million notes payable due in 2014. At July 2, 2011 the carrying value of the debt includes increases of $10.4 million associated with the fair value adjustment made in purchase accounting and $0.4 million pertaining to the fair value adjustment of the swap.

In December 2010, the Company entered into a fixed-to-floating interest rate swap on its $300.0 million notes payable due in 2016. At July 2, 2011 the carrying value of the debt includes a $22.1 million increase associated with the fair value adjustment made in purchase accounting partially offset by $1.9 million pertaining to the fair value adjustment of the swap.

Unamortized gains and fair value adjustments associated with interest rate swaps are more fully discussed in Note I, Derivative Financial Instruments.

The Company’s $320.0 million of Convertible Notes due 2012 and $632.5 million Convertible Preferred Units each contain conversion features allowing holders to convert to common shares at a predefined rate, which is subject to standard anti-dilution adjustments. As of July 2, 2011, the conversion rate on the Convertibles Notes due 2012 was 15.5886 (equivalent to a conversion price set at $64.15 per common share) and the conversion rate on the Convertible Preferred Units was 1.3358 (equivalent to a conversion price set at $74.86 per common share). Refer to Note H, Long-Term Debt and Financing Arrangements of the Company’s 2010 Annual Report on Form 10K for the fiscal year ended January 1, 2011 for further discussion of those terms.