Financing Arrangements

3 Months Ended

Jul. 27, 2011

Financing Arrangements [Abstract]

Financing Arrangements

(13)   Financing Arrangements

In Fiscal 2010, the Company entered into a three-year $175 million accounts receivable securitization program. For the sale of receivables under the program, the Company receives initial cash funding and a deferred purchase price. The initial cash funding was $118.7 million and $116.2 million during the first quarters ended July 27, 2011 and July 28, 2010, respectively, resulting in an increase in cash for sales under this program for the first quarters ended July 27, 2011 and July 28, 2010 of $89.7 million and $32.0 million, respectively. The fair value of the deferred purchase price was $56.2 million and $173.9 million as of July 27, 2011 and April 27, 2011, respectively. The increase in cash proceeds related to the deferred purchase price was $117.7 million and $51.5 million for the first quarters ended July 27, 2011 and July 28, 2010, respectively. This deferred purchase price is included as a trade receivable on the consolidated balance sheets and has a carrying value which approximates fair value as of July 27, 2011 and April 27, 2011, due to the nature of the short-term underlying financial assets.

In addition, the Company acted as servicer for approximately $168 million and $146 million of trade receivables which were sold to unrelated third parties without recourse as of July 27, 2011 and April 27, 2011, respectively. These trade receivables are short-term in nature. The proceeds from these sales are also recognized on the statements of cash flows as a component of operating activities.

The Company has not recorded any servicing assets or liabilities as of July 27, 2011 or April 27, 2011 for the arrangements discussed above because the fair value of these servicing agreements as well as the fees earned were not material to the financial statements.