Indebtedness

Short-term borrowings consist of:



	September 29, 2012		October 1, 2011
Securitization program	$	81,800	$	—
Lines of credit	8,974		8,426
Other short-term debt	—		857
Short-term borrowings	$	90,774	$	9,283

On March 5, 2012, we entered into a securitization program which matures on March 4, 2013 and which effectively increases our borrowing capacity by up to $100,000. Under the securitization program, we sell certain trade receivables and related rights to an affiliate, which in turn sells an undivided variable percentage ownership interest in the trade receivables to a financial institution, while maintaining a subordinated interest in a portion of the pool of trade receivables. The securitization program can be extended by agreement of the parties for successive 364-day terms. Interest for the securitization program is 0.9% at September 29, 2012 and is based on prevailing market rates for short-term commercial paper plus an applicable margin. A commitment fee is also charged based on a percentage of the unused amounts available and is not material. The agreement governing the securitization program contains restrictions and covenants which include limitations on the making of certain restricted payments, creation of certain liens, and certain corporate acts such as mergers, consolidations and sale of substantially all assets. We are in compliance with all covenants.

In addition to the securitization program we maintain short-term credit facilities with banks throughout the world that are principally demand lines subject to revision by the banks. Interest on outstanding lines of credit is 1.9% at September 29, 2012.

Long-term debt consists of:



	September 29, 2012			October 1, 2011
U.S. revolving credit facility	$	292,026		$	332,874
Term loans	3,216			4,115
Obligations under capital leases	27			579
Senior debt	295,269			337,568
6¼% senior subordinated notes	187,004			187,021
7¼% senior subordinated notes	191,575			191,575
Total long-term debt	673,848			716,164
Less current installments	(3,186		)	(1,407		)
Long-term debt	$	670,662		$	714,757

Our U.S. revolving credit facility consists of a $900,000 revolver, which matures on March 18, 2016. The credit facility is secured by substantially all of our U.S. assets. The loan agreement contains various covenants which, among others, specify interest coverage and maximum leverage and capital expenditures. We are in compliance with all covenants. Interest on the majority of the outstanding credit facility borrowings is 1.9% and is based on LIBOR plus the applicable margin, which was 150 basis points at September 29, 2012. Interest on the remaining outstanding credit facility borrowings is 3.8% and is based on prime plus the applicable margin, which was 75 basis points at September 29, 2012.

Term loans at September 29, 2012 consist of loans being repaid through 2014 that carry interest rates of 5.6%.

Our 6¼% senior subordinated notes are due January 15, 2015, with interest paid semiannually on January 15 and July 15 of each year. Our 7¼% senior subordinated notes are due June 15, 2018, with interest paid semiannually on June 15 and December 15 of each year. Both the 6¼% and 7¼% senior subordinated notes are unsecured, general obligations, subordinated in right of payment to all existing and future senior indebtedness and contain normal incurrence-based covenants.

Maturities of long-term debt are $3,186 in 2013, $57 in 2014, $187,004 in 2015, $292,026 in 2016, $0 in 2017 and $191,575 thereafter.

At September 29, 2012, we had pledged assets with a net book value of $1,453,831 as security for long-term debt.

Our only financial instrument for which the carrying value at times differs from its fair value is long-term debt. At September 29, 2012, the fair value of long-term debt was $686,741 compared to its carrying value of $673,848. The fair value of long-term debt was estimated based on quoted market prices.

At September 29, 2012, we had $607,928 of unused short and long-term borrowing capacity, including $594,443 from the U.S. credit facility. Commitment fees are charged on some of these arrangements and on the U.S. credit facility based on a percentage of the unused amounts available and are not material.