Note 6. Debt
A portion of the purchase price of certain international acquisitions
has been funded by borrowing in local currency (equivalent to
$129 million as of June 30, 1997 and $91 million as of June 30,
1996) on a short-term basis at an average interest of 5.8% in
fiscal 1997 and 4.1% in fiscal 1996. These borrowings have been
designated as hedges against the Company's net investment in the
businesses acquired.
Components of long-term debt are as follows:
(In thousands)
| June 30, | ||
| Zero coupon convertible subordinated notes (5 1/4% yield) | ||
| Industrial revenue bonds (with fixed and variable interest rates from 3.6% to 8.3%) | ||
| Other | ||
| Less current portion | ||
The zero coupon convertible subordinated notes have a face value
of approximately $750 million at June 30, 1997, and mature February
20, 2012, unless converted or redeemed earlier. The notes are
convertible into approximately 9.7 million shares of the Company's
common stock. The notes are callable at the option of the Company,
and the holders of the notes can convert into common stock at
any time or require redemption in 1997, 2002, and 2007. During
fiscal 1997 and 1996 approximately $52 million and $3 million
face value of notes were converted or redeemed. As of June 30,
1997 and 1996, the quoted market prices for the zero coupon notes
were approximately $443 million and $400 million, respectively.
The fair value of the other debt included above, based on available
market information, approximates its carrying value.
Long-term debt repayments are due as follows:
(In thousands)
| 1999 | |
| 2000 | |
| 2001 | |
| 2002 | |
| Thereafter | |
Interest payments were approximately $10 million in fiscal 1997,
$8 million in 1996 and $4 million in 1995.