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Debt
12 Months Ended
May 29, 2011
Debt  
Debt

Note 10. Debt

Debt at fiscal year-end consisted of the following:

(In Millions)
  2011
  2010
 
 
     

Senior floating rate notes due 2010

  $ -   $ 250.0  

Senior notes due 2012 at 6.15%

    375.0     375.0  

Senior notes due 2015 at 3.95%

    250.0     250.0  

Senior notes due 2017 at 6.60%

    375.0     375.0  

Unsecured promissory note at 2.50%

    29.7     26.5  
       

 

    1,029.7     1,276.5  

Less net unamortized discount

    (2.3 )   (2.8 )

Add fair value adjustment*

    15.4     3.8  
       

 

    1,042.8     1,277.5  

Less current portion of long-term debt

    -     276.5  
       

Long-term debt

  $ 1,042.8   $ 1,001.0  
       

*
The fixed-rate debt obligation that was hedged is reflected in the consolidated balance sheet as an amount equal to the sum of the debt's carrying value plus a fair value adjustment for the change in the fair value of the hedged debt obligation (See Note 3 to the Consolidated Financial Statements).

               In June 2010, we repaid in full the $250 million aggregate principal amount of senior floating rate notes due June 2010 which were issued through a public offering in June 2007. The total amount of repayment was $250.3 million which included the aggregate principal amount outstanding and accrued interest through the repayment date. The $375.0 million aggregate principal amount of 6.15 percent senior notes due June 2012 and $375.0 million aggregate principal amount of 6.60 percent senior notes due June 2017 were also issued through the public offering in June 2007. Interest on the senior fixed rate notes is payable semi-annually and the notes are redeemable by us at any time.

               The $250.0 million aggregate principal amount of senior notes due April 2015 were issued through a public offering in April 2010. The unsecured notes bear interest at a fixed rate of 3.95 percent which is payable semi-annually. The notes are redeemable by us at any time.

               In October 2010, we amended an existing credit agreement with a bank to extend the due date of our unsecured promissory note denominated in Japanese yen (2,408,750,000). Under the terms of the agreement, the promissory note will become due in November 2013 and interest is payable quarterly at a fixed 2.5 percent annual rate. We are also required to comply with the covenants set forth under our multi-currency agreement.

               The aggregate annual maturities of long-term debt at May 29, 2011 are presented in the following table:

Fiscal year:
  (In Millions)  

2012

  $ -  

2013

    375.0  

2014

    29.7  

2015

    250.0  

2016

    -  

2017 and thereafter

    375.0  
       

 

  $ 1,029.7  
       

               The estimated fair value of long-term debt was $1,141.3 million at May 29, 2011.

               Our multicurrency credit agreement with a bank was renewed and amended in October 2010 to provide up to $10 million for multicurrency loans, letters of credit and standby letters of credit. At May 29, 2011, we had committed $2.2 million of the credit available under the agreement. The agreement contains restrictive covenants, conditions and default provisions that require the maintenance of certain financial ratios. As of May 29, 2011, we were in compliance with all financial covenants under the agreement. The agreement expires in October 2011 and we expect to renew it before then.