Credit Facilities

12 Months Ended

Jul. 31, 2012

Credit Facilities [Abstract]

Credit Facilities

NOTE D  Credit Facilities

The Company has a five-year, multi-currency revolving facility with a group of banks under which the Company may borrow up to $250 million. This facility matures on April 2, 2013. The agreement provides that loans may be made under a selection of currencies and rate formulas including Base Rate Advances or Off Shore Rate Advances. The interest rate on each advance is based on certain market interest rates and leverage ratios. Facility fees and other fees on the entire loan commitment are payable over the duration of this facility. There was $80.0 million outstanding at July 31, 2012 and nothing outstanding at July 31, 2011. At July 31, 2012 and 2011, $159.1 million and $238.6 million, respectively, were available for further borrowing under such facilities. The amount available for further borrowing reflects a reduction for issued standby letters of credit, as discussed below. The weighted average interest rate on these short-term borrowings outstanding at July 31, 2012 was 0.4 percent. The Company's multi-currency revolving facility contains debt covenants specifically related to maintaining a certain interest coverage ratio and a certain leverage ratio as well as other covenants that under certain circumstances can restrict the Company's ability to incur additional indebtedness, make investments and other restricted payments, create liens, and sell assets. As of July 31, 2012, the Company was in compliance with all such covenants. The Company does anticipate refinancing this revolving credit facility during Fiscal 2013.

Certain note agreements contain debt covenants related to working capital levels and limitations on indebtedness. As of July 31, 2012, the Company was in compliance with all such covenants. The Company expects to remain in compliance with these covenants.

The Company has two uncommitted credit facilities in the United States, which provide unsecured borrowings for general corporate purposes. At July 31, 2012 and 2011, there was $41.3 million and $56.9 million available for use. There was $8.7 million outstanding at July 31, 2012 and $13.1 million outstanding at July 31, 2011. The weighted average interest rate on these short-term borrowings outstanding at July 31, 2012 and 2011 was 1.0 percent and 0.9 percent, respectively.

The Company has a €100 million, or $123.1 million, program for issuing treasury notes for raising short, medium, and long-term financing for its European operations. There was nothing outstanding on this program at July 31, 2012 or 2011. Additionally, the Company's European operations have lines of credit with an available limit of €43.6 million or $53.7 million. There was nothing outstanding on these lines of credit as of July 31, 2012 or 2011.

Other international subsidiaries may borrow under various credit facilities. There was $6.4 million outstanding under these credit facilities as of July 31, 2012, and nothing outstanding as of July 31, 2011. The weighted average interest rate on these short-term borrowings outstanding at July 31, 2012, was 0.5 percent.

As discussed further in Note M, at July 31, 2012 and 2011, the Company had outstanding standby letters of credit totaling $10.9 million and $11.4 million, respectively, upon which no amounts had been drawn. The letters of credit guarantee payment to third parties in the event the Company is in breach of insurance contract terms as detailed in each letter of credit.