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The components of other assets are as follows:
Short-term debt at May 26, 2002, and May 27, 2001, consisted
of $0 and $12,000, respectively, of unsecured commercial paper
borrowings with original maturities of one month or less.
The debt bore an interest rate of 4.3 percent at May 27, 2001.
The components of long-term debt are as follows:
In July 2000, the Company registered $500,000
of debt securities with the Securities and Exchange Commission
(SEC) using a shelf registration process. Under this process,
the Company may offer, from time to time, up to $500,000 of
debt securities. In September 2000, the Company issued $150,000
of unsecured 8.375 percent senior notes due in September 2005.
The senior notes rank equally with all of the Company’s
other unsecured and unsubordinated debt and are senior in
right of payment to all of the Company’s future subordinated
debt.
In November 2000, the Company filed a prospectus
supplement with the SEC to offer up to $350,000 of medium-term
notes from time to time as part of the shelf registration
process referred to above. In April 2001, the Company issued
$75,000 of unsecured 7.45 percent medium-term notes due in
April 2011. In March 2002, the Company issued $150,000 of
unsecured 5.75 percent medium-term notes due in March 2007.
As of May 26, 2002, the Company’s shelf registration
provides for the issuance of an additional $125,000 of unsecured
debt securities.
In January 1996, the Company issued $150,000
of unsecured 6.375 percent notes due in February 2006 and
$100,000 of unsecured 7.125 percent debentures due in February
2016. Concurrent with the issuance of the notes and debentures,
the Company terminated, and settled for cash, interest-rate
swap agreements with notional amounts totaling $200,000, which
hedged the movement of interest rates prior to the issuance
of the notes and debentures. The cash paid in terminating
the interest-rate swap agreements is being amortized to interest
expense over the life of the notes and debentures. The effective
annual interest rate is 7.57 percent for the notes and 7.82
percent for the debentures, after consideration of loan costs,
issuance discounts, and interest-rate swap termination costs.
The Company also maintains a credit facility
that expires in October 2004, with a consortium of banks under
which the Company can borrow up to $300,000. The credit facility
allows the Company to borrow at interest rates that vary based
on the prime rate, LIBOR, or a competitively bid rate among
the members of the lender consortium, at the option of the
Company. The credit facility is available to support the Company’s
commercial paper borrowing program, if necessary. The Company
is required to pay a facility fee of 15 basis points per annum
on the average daily amount of loan commitments by the consortium.
The amount of interest and the annual facility fee are subject
to change based on the Company’s achievement of certain
debt ratings and financial ratios, such as maximum debt to
capital ratios. Advances under the credit facility are unsecured.
At May 26, 2002, and May 27, 2001, no borrowings were outstanding
under this credit facility.
The aggregate maturities of long-term debt
for each of the five fiscal years subsequent to May 26, 2002,
and thereafter are $0 in 2003 through 2005, $300,000 in 2006,
$150,000 in 2007, and $214,140 thereafter.
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