Debt

Short-term borrowings, including current portion of long-term debt, consists of the following at December 31:



	2012		2011
6.875% senior notes, due 2013	$	335,384	$	—
Short-term borrowings in various countries	28,973		33,843
	$	364,357	$	33,843

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 December 31, 2012 and 2011 were 4.6% and 3.6%, respectively.

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



	2012		2011
Revolving credit facility	$	123,600	$	74,000
Asset securitization program	225,000		280,000
6.875% senior notes, due 2013	—		341,937
3.375% notes, due 2015	257,732		260,461
6.875% senior debentures, due 2018	198,869		198,660
6.00% notes, due 2020	299,936		299,927
5.125% notes, due 2021	249,356		249,278
7.5% senior debentures, due 2027	198,030		197,890
Other obligations with various interest rates and due dates	34,955		25,670
	$	1,587,478	$	1,927,823

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:



	2012		2011
6.875% senior notes, due 2013	$	342,000	$	352,000
3.375% notes, due 2015	260,000		250,000
6.875% senior debentures, due 2018	236,000		216,000
6.00% notes, due 2020	342,000		315,000
5.125% notes, due 2021	272,500		247,500
7.5% senior debentures, due 2027	246,000		244,000

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.

The company has a $1,200,000 revolving credit facility, maturing in August 2016. This 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. 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, 2012), or an effective interest rate of 1.5% at December 31, 2012. The facility fee related to the revolving credit facility is .225%.

The company had outstanding borrowings under the revolving credit facility of $123,600 and $74,000 at December 31, 2012 and 2011, respectively.

The company has a $775,000 asset securitization program collateralized by accounts receivable of certain of its United States subsidiaries, 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, 2012), or an effective interest rate of .73% at December 31, 2012. The facility fee is .40%.

At December 31, 2012 and 2011, the company had $225,000 and $280,000, respectively, in outstanding borrowings under the asset securitization program, which was included in "Long-term debt" in the company's consolidated balance sheets, and total collateralized accounts receivable of approximately $1,610,946 and $1,562,613, respectively, were held by AFC and were included in "Accounts receivable, net" in the company's consolidated balance sheets. 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.

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, 2012 and is currently not aware of any events that would cause non-compliance with any covenants in the future.

Annual payments of borrowings during each of the years 2013 through 2017 are $364,357, $253,457, $261,977, $125,784, and $69, respectively, and $946,191 for all years thereafter.

During 2011, the company repaid its $200,000 bank term loan which was due in January 2012.

During 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 which was included in "Other" in the company's consolidated statements of operations.

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) which was included in "Other" in the company's 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 2010, the company repaid the remaining $69,545 principal amount of its 9.15% senior notes upon maturity.

Interest and other financing expense, net, includes interest and dividend income of $5,779, $6,113, and $5,052 in 2012, 2011, and 2010, respectively. Interest paid, net of interest and dividend income, amounted to $113,628, $104,340, and $80,686 in 2012, 2011, and 2010, respectively.