
	December 31.		January 2.
(in thousands)	2011		2011
7.25% unsecured notes due February 1, 2019	$	397,065	$	396,650
Commercial paper borrowings		109,671		―
AUD 50M borrowing		51,012		―
Other indebtedness		7,464		3,000
Total		565,212		399,650
Less: current portion		(112,983)		(3,000)
Total long-term debt	$	452,229	$	396,650

At December 31, 2011, the average interest rate on the Company's outstanding commercial paper borrowing was 0.5%. The Company did not borrow funds under its commercial paper program in 2010. The Company's other indebtedness at December 31, 2011 is at interest rates of 0% to 6% and matures from 2012 to 2016.

In January 2009, the Company issued $400 million in unsecured ten-year fixed-rate notes due February 1, 2019 (the Notes). The Notes have a coupon rate of 7.25% per annum, payable semiannually on February 1 and August 1. Under the terms of the Notes, unless the Company has exercised its right to redeem the Notes, the Company is required to offer to repurchase the Notes in cash at 101% of the principal amount, plus accrued and unpaid interest, upon the occurrence of both a Change of Control and Below Investment Grade Rating Events as described in the Prospectus Supplement of January 27, 2009.

On June 17, 2011, the Company terminated its U.S. $500 million five-year revolving credit agreement, dated as of August 8, 2006, among the Company, the lenders party thereto and Citibank, N.A. (the 2006 Credit Agreement), in connection with the entrance into a new revolving credit facility. No borrowings were outstanding under the 2006 Credit Agreement at the time of termination. On June 17, 2011, the Company entered into a credit agreement (the Credit Agreement) providing for a new U.S. $450 million, AUD 50 million four-year revolving credit facility (the Facility), with each of the lenders party thereto, JPMorgan Chase Bank, N.A., as Administrative Agent (JP Morgan), and J.P. Morgan Australia Limited, as Australian Sub-Agent. The Facility consists of two tranches: (a) U.S. $450 million and (b) AUD 50 million (subject, at the Company's option, to conversion of the unused Australian dollar commitments into U.S. dollar commitments at a specified exchange rate). This agreement supports the issuance of the Company's commercial paper, but the Company may also draw on the facility for general corporate purposes. The Credit Agreement provides for an option to increase the total U.S. dollar commitments up to an aggregate amount of U.S. $700 million. The Facility replaced the Company's 2006 Credit Agreement. The Company is required to pay a facility fee on a quarterly basis, based on the Company's long-term debt ratings, of between 0.08% and 0.20% of the amount of the Facility. Any borrowings are made on an unsecured basis and bear interest at (a) for U.S. dollar borrowings, at the Company's option, either (i) a fluctuating interest rate equal to the highest of JPMorgan's prime rate, 0.50 percent above the Federal funds rate or the one-month eurodollar rate plus 1%, or (ii) the eurodollar rate for the applicable interest period, or (b) for Australian dollar borrowings, the bank bill rate, in each case plus an applicable margin that depends on the Company's long-term debt ratings. The Facility will expire on June 17, 2015, unless the Company and the banks agree to extend the term. Any outstanding borrowings must be repaid on or prior to the final termination date. The Credit Agreement contains terms and conditions, including remedies in the event of a default by the Company, typical of facilities of this type and, among other things, requires the Company to maintain at least $1.5 billion of consolidated stockholders' equity.

On September 7, 2011, the Company borrowed AUD 50 million under its revolving credit facility. On the same date, the Company entered into interest rate swap agreements with a total notional value of AUD 50 million and a maturity date of March 7, 2015. These interest rate swap agreements will pay the Company variable interest on the AUD 50 million notional amount at the three-month bank bill rate, and the Company will pay the counterparties a fixed rate of 4.5275%. These interest rate swap agreements were entered into to convert the variable rate Australian dollar borrowing under the revolving credit facility into a fixed rate borrowing. Based on the terms of the interest rate swap agreements and the underlying borrowing, these interest rate swap agreements were determined to be effective, and thus qualify as a cash flow hedge. As such, any changes in the fair value of these interest rate swaps are recorded in other comprehensive income on the accompanying condensed consolidated balance sheets until earnings are affected by the variability of cash flows.

During 2011 and 2010, the Company had average borrowings outstanding of approximately $426.7 million and $399.5 million, respectively, at average annual interest rates of approximately 7.0% and 7.2%, respectively. The Company incurred net interest expense of $29.1 million, $27.9 million and $29.0 million during 2011, 2010 and 2009, respectively.

At December 31, 2011 and January 2, 2011, the fair value of the Company's 7.25% unsecured notes, based on quoted market prices, totaled $460.5 million and $457.2 million, respectively, compared with the carrying amount of $397.1 million and $396.7 million. The carrying value of the Company's other unsecured debt at December 31, 2011 approximates fair value.