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Long-Term Obligations | 12 Months Ended
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Jul. 31, 2014
Debt Disclosure [Abstract] |
Long-Term Obligations | Long-Term Obligations On February 1, 2012, the Company and certain of its subsidiaries entered into an unsecured $300,000 multi-currency revolving loan agreement with a group of six banks that replaced and terminated the Company’s previous credit agreement. Under the credit agreement, which has a final maturity date of February 1, 2017, the Company has the option to select either a base interest rate (based upon the higher of the federal funds rate plus one-half of 1% or the prime rate of Bank of America plus a margin based on the Company’s consolidated leverage ratio) or a Eurocurrency interest rate (at the LIBOR rate plus a margin based on the Company’s consolidated leverage ratio). At the Company’s option, and subject to certain conditions, the available amount under the new credit facility may be increased from $300,000 up to $450,000. In December 2012, the Company drew down $220,000 from its revolving loan agreement to fund a portion of the purchase price of the acquisition of PDC. The borrowings bear interest at LIBOR plus 1.125% per annum, which will be reset from time to time based upon changes in the LIBOR rate. As of July 31, 2013, there was $39,000 outstanding on this revolving loan agreement, which was repaid during fiscal 2014. During fiscal 2014, the Company drew down an additional $63,000 in order to fund dividends, principal payments on the private placement note issuances, share repurchases, and general corporate needs. The Company repaid $21,000 of this borrowing during the three months ended July 31, 2014, and intends to repay the remainder within 12 months of the current period end, as such, the borrowing is classified as "Notes Payable" within current liabilities on the Consolidated Balance Sheets. During fiscal 2014, the maximum amount outstanding on the revolving loan agreement was $72,000. As of July 31, 2014, the outstanding balance on the credit facility was $42,000 and the Company had outstanding letters of credit under the revolving loan agreement of $3,634. There was $254,366 available for future borrowing under the credit facility, which can be increased to $404,366 at the Company's option, subject to certain conditions. In February 2013, the Company entered into an unsecured $26,200 multi-currency line of credit in China, which was amended in November 2013 to $24,200 and is due on demand. The line of credit supports USD-denominated or CNY-denominated borrowing to fund working capital and operations for the Company's Chinese entities. Borrowings under this facility may be made for a period up to one year from the date of borrowing with interest on the borrowings incurred equal to U.S. Dollar LIBOR on the date of borrowing plus a margin based upon duration. There is no ultimate maturity on the facility and the facility is subject to periodic review and repricing. The Company is not required to comply with any financial covenants as part of this agreement. During fiscal 2014, the maximum amount outstanding was $19,422, which was also the outstanding balance as of July 31, 2014. This was comprised of $6,923 USD-denominated borrowings and $12,499 USD equivalent of CNY-denominated borrowings. As of July 31, 2014, there was $4,778 available for future borrowing under this credit facility. As of July 31, 2014, borrowings on the revolving loan agreement and China line of credit were as follows:
| July 31, 2014 |  | Interest Rate
USD-denominated borrowing on revolving loan agreement | $ | 42,000 |  |  | 1.2472 | %
USD-denominated borrowing on China line of credit | 6,923 |  |  | 1.3548 | %
RMB-denominated borrowing on China line of credit (USD equivalent) | 12,499 |  |  | 5.0400 | %
Notes payable | $ | 61,422 |  |  | 2.0311 | %
As of July 31, 2013, borrowings on the revolving loan agreement and China line of credit were as follows:
| July 31, 2013 |  | Interest Rate
USD-denominated borrowing on revolving loan agreement | $ | 39,000 |  |  | 1.2787 | %
USD-denominated borrowing on China line of credit | 11,613 |  |  | 1.1201 | %
Notes payable | $ | 50,613 |  |  | 1.2423 | %
The Company had outstanding letters of credit of $3,634 and $3,570 at July 31, 2014 and July 31, 2013, respectively. On May 13, 2010, the Company completed a private placement of €75.0 million aggregate principal amount of senior unsecured notes to accredited institutional investors. The €75.0 million of senior notes consists of €30.0 million aggregate principal amount of 3.71% Series 2010-A Senior Notes, due May 13, 2017 and €45.0 million aggregate principal amount of 4.24% Series 2010-A Senior Notes, due May 13, 2020, with interest payable on the notes semiannually. This private placement was exempt from the registration requirements of the Securities Act of 1933. The notes were not registered for resale and may not be resold absent such registration or an applicable exemption from the registration requirements of the Securities Act of 1933 and applicable state securities laws. The notes have certain prepayment penalties for repaying them prior to maturity. The notes have been fully and unconditionally guaranteed on an unsecured basis by the Company’s domestic subsidiaries. During fiscal 2004 through fiscal 2007, the Company completed three private placement note issuances totaling $500 million in ten-year fixed rate notes with varying maturity dates to institutional investors at interest rates varying from 5.14% to 5.33%. The notes must be repaid equally over seven years, with initial payment due dates ranging from 2008 to 2011, with interest payable on the notes due semiannually on various dates throughout the year, which began in December 2004. The private placements were exempt from the registration requirements of the Securities Act of 1933. The notes were not registered for resale and may not be resold absent such registration or an applicable exemption from the registration requirements of the Securities Act of 1933 and applicable state securities laws. The notes have certain prepayment penalties for repaying them prior to the maturity date. Under the debt agreement, the Company made scheduled principal payments of $61.3 million during each of the years ended July 31, 2008 through 2014. The Company’s debt and revolving loan agreements require it to maintain certain financial covenants. The Company’s February 2006, March 2007, and May 2010 private placement debt agreements require the Company to maintain a ratio of debt to the trailing twelve months EBITDA, as defined in the debt agreements, of not more than a 3.5 to 1.0 ratio (leverage ratio). As of July 31, 2014, the Company was in compliance with the financial covenant of the February 2006, March 2007, and May 2010 private placement debt agreements, with the ratio of debt to EBITDA, as defined by the agreements, equal to 1.7 to 1.0. Additionally, the Company’s February 2012 revolving loan agreement requires the Company to maintain a ratio of debt to trailing twelve months EBITDA, as defined by the debt agreement, of not more than a 3.25 to 1.0 ratio. The revolving loan agreement requires the Company’s trailing twelve months EBITDA to interest expense of not less than a 3.0 to 1.0 ratio (interest expense coverage). As of July 31, 2014, the Company was in compliance with the financial covenants of the revolving loan agreement, with the ratio of debt to EBITDA, as defined by the agreement, equal to 1.7 to 1.0 and the interest expense coverage ratio equal to 11.5 to 1.0. Long-term obligations consist of the following as of July 31:
|  | 2014 |  | 2013
Euro-denominated notes payable in 2017 at a fixed rate of 3.71% |  | $ | 40,164 |  |  | $ | 39,900 |
Euro-denominated notes payable in 2020 at a fixed rate of 4.24% |  | 60,246 |  |  | 59,850 |
USD-denominated notes payable through 2014 at a fixed rate of 5.14% |  | — |  |  | 18,750 |
USD-denominated notes payable through 2016 at a fixed rate of 5.30% |  | 52,286 |  |  | 78,428 |
USD-denominated notes payable through 2017 at a fixed rate of 5.33% |  | 49,114 |  |  | 65,486 |
|  | $ | 201,810 |  |  | $ | 262,414 |
Less current maturities |  | $ | (42,514 | ) |  | $ | (61,264 | )
|  | $ | 159,296 |  |  | $ | 201,150 |
The estimated fair value of the Company’s long-term obligations was $216,280 and $276,132 at July 31, 2014 and July 31, 2013, respectively, as compared to the carrying value of $201,810 and $262,414 at July 31, 2014 and July 31, 2013, respectively. The fair value of the long-term obligations, which were determined using the market approach based upon the interest rates available to the Company for borrowings with similar terms and maturities, were determined to be Level 2 under the fair value hierarchy. Due to the short-term nature and variable interest rate pricing of the Company's revolving debt, it is determined that the carrying value of the debt equals the fair value of the debt. Maturities on long-term debt are as follows:
Years Ending July 31, |
2015 | $ | 42,514 |
2016 | 42,514 |
2017 | 56,536 |
2018 | — |
2019 | — |
Thereafter | 60,246 |
Total | $ | 201,810 |

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- Definition The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21475-112644 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 19, 20, 22 -Article 5 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02.19,20,22) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682 + Details
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