Note 7: Notes Payable, Long-Term Debt and Lines of Credit

Notes Payable

: Notes payable were $30,757 and $27,149 at November 28, 2015 and November 29, 2014, respectively. This amount mainly represents various foreign subsidiaries’ other short-term borrowings that were not part of committed lines. The weighted-average interest rates on short-term borrowings were 8.1 percent, 11.3 percent and 8.9 percent in 2015, 2014 and 2013, respectively. Fair values of these short-term obligations approximate their carrying values due to their short maturity. There were no funds drawn from the short-term committed lines at November 28, 2015.

Long-Term Debt

	Weighted-Average
	Interest Rate at		Fiscal Year
Long-Term Debt	November 28, 2015		Maturity Date		2015			2014
Revolving credit line		1.33%		2019	$	-		$	143,000
Term Loan		1.44%		2019		288,750			-
Senior Notes, Series A 1		2.24%		2017		17,419			17,805
Senior Notes, Series B 2		2.12%		2017		33,982			34,738
Senior Notes, Series C 3		3.34%		2020		36,955			37,192
Senior Notes, Series D 4		5.61%		2020		65,000			65,000
Senior Notes, Series E 5		4.12%		2022		250,000			250,000
Total debt					$	692,106		$	547,735

Less: current maturities						(22,500	)		-
Total long-term debt, excluding current maturities					$	669,606		$	547,735

On December 16, 2009, we entered into a note purchase agreement under which we agreed to issue $150,000 in aggregate principal amount of senior unsecured notes to a group of private investors. The $150,000 was split into four non-amortizing tranches, Series A-D. On March 5, 2012, we entered into a note purchase agreement under which we agreed to issue $250,000 in aggregate principal amount of senior unsecured notes to a group of private investors. The $250,000 is a non-amortizing tranche, Series E.

Senior Notes, Series A, due December 16, 2016, $17,000 5.13 percent fixed, swapped to a variable rate of 6- month LIBOR (in arrears) plus 1.59 percent

Senior Notes, Series B, due February 24, 2017, $33,000 5.13 percent fixed, swapped to a variable rate of 6-month LIBOR (in arrears) plus 1.47 percent

Senior Notes, Series C, due December 16, 2019, $35,000 5.61 percent fixed, $25,000 swapped to a variable rate of 6-month LIBOR (in arrears) plus 1.78 percent

Senior Notes, Series D, due February 24, 2020, $65,000 5.61 percent fixed

Senior Notes, Series E, due March 5, 2022, $250,000 4.12 percent fixed

On October 31, 2014, we entered into a credit agreement

with a consortium of financial institutions under which we established a $300,000 multi-currency revolving credit facility and a $300,000 term loan that we can use to repay existing indebtedness, finance working capital needs, finance acquisitions, and for general corporate purposes. At November 28, 2015 there were no borrowings on the revolving credit facility. At November 28, 2015 a balance of $288,750 was drawn on the term loan.

Interest on the revolving credit facility is payable at the LIBOR plus 1.075 percent. A facility fee of 0.175 percent is payable quarterly. The interest rate on the term loan is payable at the LIBOR rate plus 1.25 percent.

The interest rates and the facility fee are based on a rating grid. The credit agreement replaced the previous revolving credit facilities entered into on March 5, 2012. The October 31, 2014 credit agreement expires on October 31, 2019.

On October 31, 2014 we amended various provisions of the Note Purchase Agreements Series A through E, including the covenant definition of Consolidated EBITDA. As part of these amendments, the interest rate on the debt may increase based on changes to the rating of our senior, unsecured long-term debt.

Long-term debt had an estimated fair value of $716,213 and $606,194 as of November 28, 2015 and November 29, 2014, respectively. The fair value of long-term debt is based on quoted market prices for the same or similar issues or on the current rates offered for debt of similar maturities. The estimated fair value of these long-term obligations is not necessarily indicative of the amount that would be realized in a current market exchange.

Lines of Credit

As of November 28, 2015, lines of credit were as follows:

Term		Committed				Drawn				Unused
Long-term lines of credit		$	300,000			$	-			$	300,000

A revolving credit agreement with a consortium of financial institutions accounted for the entire committed lines of credit. The credit agreement creates an unsecured multi-currency revolving credit facility that can be drawn upon for general corporate purposes up to a maximum of $300,000. The credit agreement expires on October 31, 2019.

The most restrictive debt covenants place limitations on secured and unsecured borrowings, operating leases, and contain minimum interest coverage and maximum debt to trailing twelve months EBITDA requirements. In addition, we cannot be a member of any consolidated group as defined for income tax purposes other than with our subsidiaries. At November 28, 2015 all financial covenants were met.

Maturities of long-term debt for the next five fiscal years follow:

Fiscal Year		2016				2017				2018				2019				2020				Thereafter
Long-term debt obligations		$	22,500			$	81,401			$	37,500			$	198,750			$	101,955			$	250,000