Indebtedness

12 Months Ended

Oct. 01, 2011

Indebtedness [Abstract]

Indebtedness

Note 7 - Indebtedness

Long-term debt consists of:

		000000000000			000000000000
	October 1, 2011			October 2, 2010
U.S. revolving credit facility	$	332,874		$	371,179
Other revolving credit facilities and term loans		4,115			11,914
Obligations under capital leases		579			1,019
Senior debt		337,568			384,112
6 1/4% senior subordinated notes		187,021			187,038
7 1/4% senior subordinated notes		191,575			191,575
Total long-term debt		716,164			762,725
Less current installments		(1,407	)		(5,405	)
Long-term debt	$	714,757		$	757,320

On March 18, 2011, we amended our U.S. revolving credit facility. Our new revolving credit facility, which matures on March 18, 2016, increased our borrowing capacity to $900,000. Previously our credit facility consisted of a $750,000 revolver, which matured on March 14, 2013. 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 October 1, 2011. 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 October 1, 2011.

In addition to our U.S. revolving credit facility, we maintain short-term credit facilities with banks throughout the world. These credit facilities are principally demand lines subject to revision by the banks. At October 1, 2011, we had $570,667 of unused borrowing capacity, including $554,533 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.

Other revolving credit facilities and term loans at October 1, 2011 consist of financing provided by various banks and lenders to certain subsidiaries. These loans are being repaid through 2013 and carry interest rates ranging from 2.0% to 5.6%.

We have outstanding $187,000 aggregate principal amount of 6 ¹/4% senior subordinated notes due January 15, 2015, a portion of which were sold at amounts in excess of par. Interest is paid semiannually on January 15 and July 15 of each year. We also have outstanding $191,575 aggregate principal amount of 7 ¹/4% senior subordinated notes due June 15, 2018. Interest is paid semiannually on June 15 and December 15 of each year. We purchased $13,000 of the 6 ¹/4% senior subordinated notes and $8,425 of the 7 ¹/4% senior subordinated notes in 2009, which resulted in a recognized gain of $1,444. Both the 6 ¹/4% and 7 ¹/4% 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 $1,407 in 2012, $3,286 in 2013, $0 in 2014, $187,021 in 2015, $332,874 in 2016 and $191,576 thereafter.

At October 1, 2011, we had pledged assets with a net book value of $1,370,074 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 October 1, 2011, the fair value of long-term debt was $720,453 compared to its carrying value of $716,164. The fair value of long-term debt was estimated based on quoted market prices.