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Debt
3 Months Ended
Jan. 30, 2015
Debt Disclosure [Abstract]  
Debt

Note 8 – Debt

In March 2011, the Company entered into a secured credit facility for $460 million made available through a group of banks.  The credit facility is secured by substantially all of the Company’s assets and interest is based on standard inter-bank offering rates.  The credit facility expires July 20, 2016.  The spread ranges from LIBOR plus 1.5% to LIBOR plus 2.25% depending on the leverage ratios at the time the funds are drawn.  At January 30, 2015, the Company had $280.0 million outstanding under the secured credit facility at an interest rate of LIBOR plus 1.50%, which was 1.67% at January 30, 2015.  In the first fiscal quarter of 2015, borrowing under the secured credit facility increased $180.0 million, which was principally used to fund $65.0 million of the approximately $170.0 million acquisition of the display business of Barco N.V. (Barco) and $90.2 million for the share repurchase program.

In April 2013, the Company amended the secured credit facility to provide for a $175.0 million term loan (U.S. Term Loan).  The interest rate on the U.S. Term Loan ranges from LIBOR plus 1.5% to LIBOR plus 2.25% depending on the leverage ratios at the time the funds are drawn.  At January 30, 2015, the Company had $159.7 million outstanding under the U.S. Term Loan at an interest rate of LIBOR plus 1.50%, which was 1.67% at January 30, 2015.  The loan amortizes at 1.25% of the original principal balance quarterly through March 31, 2016, with the remaining balance due in July 20, 2016.

In August 2010, the Company issued $250.0 million in 7% Senior Notes due August 2020 (2020 Notes) and requiring semi-annual interest payments in March and September of each year until maturity.  The net proceeds from the sale of the notes, after deducting $4.4 million of debt issuance cost, were $245.6 million.  The 2020 Notes are general unsecured senior obligations of the Company.  The 2020 Notes are guaranteed, jointly and severally on a senior basis, by all the existing and future domestic subsidiaries of the Company unless designated as an “unrestricted subsidiary,” and those foreign subsidiaries that executed related subsidiary guarantees under the indenture covering the 2020 Notes.  The 2020 Notes are subject to redemption at the option of the Company at any time prior to August 1, 2015, at a price equal to 100% of the principal amount, plus any accrued interest to the date of redemption and a make-whole provision.  The 2020 Notes are also subject to redemption at the option of the Company, in whole or in part, on or after August 1, 2015, at redemption prices starting at 103.500% of the principal amount plus accrued interest during the period beginning August 1, 2015, and declining annually to 100% of principal and accrued interest on or after August 1, 2018.

Based on quoted market prices, the approximate fair value of the Company’s $250.0 million 7.0% Senior Notes due August 1, 2020 (2020 Notes), was approximately $262.5 million and $266.9 million as of January 30, 2015, and October 31, 2014, respectively.  The carrying amounts of the secured credit facility and U.S. Term Loan approximate fair value.  Estimates of fair value for the 2020 Notes are based on quoted market prices, and are considered Level 2 inputs as defined in the fair value hierarchy described in Note 5.

Government refundable advances consist of payments received from the Canadian government to assist in research and development related to commercial aviation.  The repayment of this advance is based on year-over-year commercial aviation revenue growth at CMC beginning in 2014.  Imputed interest on the advance was 4.58% at January 30, 2015.  The debt recognized was $46.4 million and $51.9 million as of January 30, 2015, and October 31, 2014, respectively.