Debt

At December 31, 2011 and 2010, short-term borrowings of $33,843 and $61,210, respectively, were primarily utilized to support the working capital requirements of certain international operations. The weighted average interest rates on these borrowings at December 31, 2011 and 2010 were 3.6% and 1.9%, respectively.

Long-term debt consists of the following at December 31:



	2011		2010
Revolving credit facility	$	74,000	$	—
Asset securitization program	280,000		—
Bank term loan, due 2012	—		200,000
6.875% senior notes, due 2013	341,937		349,833
3.375% notes, due 2015	260,461		249,155
6.875% senior debentures, due 2018	198,660		198,450
6.00% notes, due 2020	299,927		299,918
5.125% notes, due 2021	249,278		249,199
7.5% senior debentures, due 2027	197,890		197,750
Interest rate swaps designated as fair value hedges	—		14,082
Other obligations with various interest rates and due dates	25,670		2,816
	$	1,927,823	$	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 at December 31, using quoted market prices, is as follows:



	2011		2010
6.875% senior notes, due 2013	$	352,000	$	385,000
3.375% notes, due 2015	250,000		243,000
6.875% senior debentures, due 2018	216,000		218,000
6.00% notes, due 2020	315,000		306,000
5.125% notes, due 2021	247,500		238,000
7.5% senior debentures, due 2027	244,000		204,000

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

Annual payments of borrowings during each of the years 2012 through 2016 are $33,843, $343,292, $304,221, $260,519, and $74,035, respectively, and $945,756 for all years thereafter.

In August 2011, the company entered into a $1,200,000 revolving credit facility, maturing in August 2016. This new facility may be used by the company for general corporate purposes including working capital in the ordinary course of business, letters of credit, repayment, prepayment or purchase of long-term indebtedness and acquisitions, and as support for the company's commercial paper program, as applicable. This agreement replaces the company's $800,000 revolving credit facility which was scheduled to expire in January 2012. The company also had a $200,000 term loan which was due in January 2012. The company repaid the term loan in full in August 2011. 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 (1.275% at December 31, 2011). The facility fee related to the revolving credit facility is .225%. At December 31, 2011, the company had $74,000 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 an asset securitization program collateralized by accounts receivable of certain of its United States subsidiaries. In December 2011, the company renewed its asset securitization program and, among other things, increased its size from $600,000 to $775,000 and extended its term to a three-year commitment maturing in December 2014. 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 (.40% at December 31, 2011). The facility fee is .40%.

At December 31, 2011, the company had $280,000 in outstanding borrowings under the asset securitization program, which was included in "Long-term debt" in the accompanying consolidated balance sheet, and total collateralized accounts receivable of approximately $1,562,613 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 December 31, 2011 and is currently not aware of any events that would cause non-compliance with any covenants in the future.

During the fourth quarter of 2011, the company repurchased $17,893 principal amount of its 6.875% senior notes due in 2013. The related loss on the repurchase aggregated $895 ($549 net of related taxes) and was recognized as a loss on prepayment of debt.

During 2010, the company sold a property and was required to repay the related collateralized debt with a face amount of $9,000. For 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.

During 2010, the company completed the sale of $250,000 principal amount of 3.375% notes due in 2015 and $250,000 principal amount of 5.125% notes due in 2021. The net proceeds of the offering of $494,325 were used for general corporate purposes.

During 2009, the company repurchased $130,455 principal amount of its 9.15% senior notes due in 2010. The related loss on the repurchase, including the premium paid and write-off of the deferred financing costs, offset by the gain for terminating a portion of the interest rate swaps aggregated $5,312 ($3,228 net of related taxes or $.03 per share on both a basic and diluted basis) and was recognized as a loss on prepayment of debt. During 2010, the company repaid the remaining $69,545 principal amount of its 9.15% senior notes upon maturity.

During 2009, the company completed the sale of $300,000 principal amount of 6.00% notes due in 2020. The net proceeds of the offering of $297,430 were used to repay a portion of the previously discussed 9.15% senior notes due in 2010 and for general corporate purposes.

Interest and other financing expense, net, includes interest income of $6,113, $5,052, and $2,964 in 2011, 2010, and 2009, respectively. Interest paid, net of interest income, amounted to $104,340, $80,686, and $79,952 in 2011, 2010, and 2009, respectively.