Debt

Short-term borrowings, including current portion of long-term debt, consists of the following:



	July 2, 2011		December 31, 2010
Revolving credit facility	$	222,500	$	—
Asset securitization program	70,000		—
Bank term loan, due 2012	200,000		—
Short-term borrowings in various countries	58,155		61,210
	$	550,655	$	61,210

Short-term borrowings in various countries are primarily utilized to support the working capital requirements of certain international operations. The weighted average interest rates on these borrowings at July 2, 2011 and December 31, 2010 were 4.5% and 1.9%, respectively.

Long-term debt consists of the following:



	July 2, 2011		December 31, 2010
Bank term loan, due 2012	$	—	$	200,000
6.875% senior notes, due 2013	349,867		349,833
3.375% notes, due 2015	249,243		249,155
6.875% senior debentures, due 2018	198,555		198,450
6.00% notes, due 2020	299,922		299,918
5.125% notes, due 2021	249,238		249,199
7.5% senior debentures, due 2027	197,820		197,750
Interest rate swaps designated as fair value hedges	16,175		14,082
Other obligations with various interest rates and due dates	3,462		2,816
	$	1,564,282	$	1,761,203

The 7.5% senior debentures are not redeemable prior to their maturity. The 6.875% senior notes, 3.375% notes, 6.875% senior debentures, 6.00% notes, and 5.125% notes may be called at the option of the company subject to "make whole" clauses.

The estimated fair market value, using quoted market prices, is as follows:



	July 2, 2011		December 31, 2010
6.875% senior notes, due 2013	$	382,000	$	385,000
3.375% notes, due 2015	255,000		243,000
6.875% senior debentures, due 2018	220,000		218,000
6.00% notes, due 2020	321,000		306,000
5.125% notes, due 2021	250,000		238,000
7.5% senior debentures, due 2027	212,000		204,000

The carrying amount of the company's short-term borrowings in various countries, revolving credit facility, asset securitization program, bank term loan, and other obligations approximate their fair value.

During the second quarter of 2010, the company sold a property and was required to repay the related collateralized debt with a face amount of $9,000. For both the second quarter and first six months of 2010, the company recognized a loss on prepayment of debt of $1,570 ($964 net of related taxes or $.01 per share on both a basic and diluted basis) in the accompanying consolidated statements of operations.

The company has an $800,000 revolving credit facility with a group of banks that matures in January 2012. Interest on borrowings under the revolving credit facility is calculated using a base rate or a euro currency rate plus a spread based on the company's credit ratings (.425% at July 2, 2011). The facility fee related to the credit facility is .125%. At July 2, 2011, the company had $222,500 in outstanding borrowings under the revolving credit facility. There were no outstanding borrowings under the revolving credit facility at December 31, 2010.

The company has a $600,000 asset securitization program collateralized by accounts receivable of certain of its United States subsidiaries which expires in April 2012. The asset securitization program is conducted through Arrow Electronics Funding Corporation ("AFC"), a wholly-owned, bankruptcy remote subsidiary. The asset securitization program does not qualify for sale treatment. Accordingly, the accounts receivable and related debt obligation remain on the company's consolidated balance sheets. Interest on borrowings is calculated using a base rate or a commercial paper rate plus a spread, which is based on the company's credit ratings (.50% at July 2, 2011). The facility fee is .50%.

At July 2, 2011, there was $70,000 outstanding under the asset securitization program, which was included in "Short-term borrowings, including current portion of long-term debt" in the accompanying consolidated balance sheet, and total collateralized accounts receivable of approximately $1,316,543 were held by AFC and were included in "Accounts receivable, net" in the accompanying consolidated balance sheet. Any accounts receivable held by AFC would likely not be available to other creditors of the company in the event of bankruptcy or insolvency proceedings before repayment of any outstanding borrowings under the asset securitization program. There were no outstanding borrowings under the asset securitization program at December 31, 2010.

Both the revolving credit facility and asset securitization program include terms and conditions that limit the incurrence of additional borrowings, limit the company's ability to pay cash dividends or repurchase stock, and require that certain financial ratios be maintained at designated levels. The company was in compliance with all covenants as of July 2, 2011 and is currently not aware of any events that would cause non-compliance with any covenants in the future.

Interest and other financing expense, net, includes interest income of $1,411 and $2,779 for the second quarter and first six months of 2011 and $1,281 and $1,620 for the second quarter and first six months of 2010, respectively.