External financing

6 Months Ended

Dec. 31, 2011

Debt Disclosure [Abstract]

External financing

External financing

Short-term debt consists of the following:

	December 31, 2011		July 2, 2011
	(Thousands)
Bank credit facilities	$	189,524	$	81,951
Borrowings under the accounts receivable securitization program	610,000		160,000
Other debt due within one year	1,039		1,128
Short-term debt	$	800,563	$	243,079

Bank credit facilities consist of various committed and uncommitted lines of credit with financial institutions utilized primarily to support the working capital requirements of foreign operations. The weighted average interest rate on the bank credit facilities was 6.9% and 7.8% at December 31, 2011 and July 2, 2011, respectively.

In August 2011, the Company amended its accounts receivable securitization program (the “Program”) with a group of financial institutions to allow the Company to sell, on a revolving basis, an undivided interest of up to $750,000,000 ($600,000,000 prior to the amendment) in eligible receivables while retaining a subordinated interest in a portion of the receivables. The Program does not qualify for sale treatment and, as a result, any borrowings under the Program are recorded as debt on the consolidated balance sheet. The Program contains certain covenants, all of which the Company was in compliance with as of December 31, 2011. The Program has a one year term that expires in August 2012. Interest on borrowings is calculated using a base rate or a commercial paper rate plus a spread of 0.35%. The facility fee is 0.35%.

Long-term debt consists of the following:

	December 31, 2011			July 2, 2011
	(Thousands)
5.875% Notes due March 15, 2014	$	300,000		$	300,000
6.00% Notes due September 1, 2015	250,000			250,000
6.625% Notes due September 15, 2016	300,000			300,000
5.875% Notes due June 15, 2020	300,000			300,000
Other long-term debt	37,425			126,512
Subtotal	1,187,425			1,276,512
Discount on notes	(2,737		)	(3,003		)
Long-term debt	$	1,184,688		$	1,273,509

During the second quarter of fiscal 2012, the Company entered into a five-year $1,000,000,000 senior unsecured revolving credit facility (the "2012 Credit Facility") with a syndicate of banks which expires in November 2016. In connection with the 2012 Credit Facility, the Company terminated its existing unsecured $500,000,000 credit facility (the "2008 Credit Facility") which was to expire in September 2012. Under the 2012 Credit Facility, the Company may select from various interest rate options, currencies and maturities. The 2012 Credit Facility contains certain covenants, all of which the Company was in compliance with as of December 31, 2011. At December 31, 2011, there were $23,181,000 of borrowings under the 2012 Credit Facility included in “other long-term debt” in the preceding table. In addition, there were $17,102,000 letters of credit issued under the 2012 Credit Facility which represents a utilization of the 2012 Credit Agreement capacity but are not recorded in the consolidated balance sheet as the letters of credit are not debt. At July 2, 2011, there were $122,093,000 of borrowings outstanding under the 2008 Credit Facility included in “other long-term debt” in the preceding table and $16,602,000 in letters of credit issued.

At December 31, 2011, the carrying value and fair value of the Company’s debt was $1,985,251,000 and $2,100,577,000, respectively. Fair value was estimated primarily based upon quoted market prices.