Borrowing Arrangements

9 Months Ended

Jun. 29, 2012

On March 2, 2007, the Company issued $200.0 million aggregate principal amount of convertible subordinated notes ("2007 Convertible Notes"). The offering contained two tranches. The first tranche consisted of $100.0 million of 1.25% convertible subordinated notes due March 2010 (the "1.25% Notes") which have been retired. The second tranche consisted of $100.0 million aggregate principal amount of 1.50% convertible subordinated notes due March 2012 (the "1.50% Notes"). During the nine months ended June 29, 2012, the Company redeemed and retired the remaining $26.7 million of aggregate principal amount of the 1.50% Notes, paying a cash premium of $21.4 million which was accounted for as a reacquisition of equity instruments in accordance with ASC 470-20 - Debt, Debt with Conversions and Other Options.

The following tables provide additional information about the Company's 2007 Convertible Notes (in thousands):



	As of
	June 29, 2012		September 30, 2011
Equity component of the convertible notes outstanding	$	—	$	6,061
Principal amount of the convertible notes	$	—	$	26,677
Unamortized discount of the liability component	$	—	$	588
Net carrying amount of the liability component	$	—	$	26,089



	Three-months Ended					Nine-months Ended
	June 29, 2012		July 1, 2011			June 29, 2012			July 1, 2011
Effective interest rate on the liability component	—		6.86		%	6.86		%	6.86		%
Cash interest expense recognized (contractual interest)	$	—	$	100		$	105		$	300
Effective interest expense recognized	$	—	$	339		$	428		$	1,000

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

+ References+ Details