Notes Ten: DEBT

Short-term borrowings consisted of loans payable under bank credit lines. There were no short-term borrowings outstanding at November 30, 2004 and at November 30, 2003. At November 30, 2004, the equivalent of $9,106,000 was available under short-term credit lines.

Domestically, as of November 30, 2004, the Company maintained a $100,000,000 revolving credit facility with six banks (the "Revolver"). At November 30, 2004, $18,302,000 was utilized for standby letters of credit and $10,400,000 was borrowed under the Revolver; therefore, $71,298,000 was available. Under the Revolver, the Company may, at its option,borrow at floating interest rates based on specified margins over money market rates, at any time until June 2008, when all borrowings under the Revolver must be repaid.

Foreign subsidiaries also maintain unsecured revolving credit facilities and short-term facilities with banks. Foreign subsidiaries may borrow in various currencies, at interest rates based upon specified margins over money market rates. The equivalent of $3,000,000 may be borrowed at any time through July 2006 under one facility. Other short-term lines permit borrowings up to $22,000,000. At November 30, 2004, $915,000 was borrowed under these facilities.

Borrowings under certain bank facilities by the Company and its foreign subsidiaries are supported by the Revolver and, accordingly, have been classified as long-term debt and are considered payable when the Revolver is due.

Long-term debt consisted of the following as of November 30:

Future maturities of long-term debt were as follows as of November 30, 2003:

The lending agreements contain various restrictive covenants, including the requirement to maintain specified amounts of net worth and restrictions on cash dividends, borrowings, liens, investments and guarantees. Under the most restrictive provisions of the Company's lending agreements, approximately $4,589,000 of retained earnings was not restricted, as of November 30, 2004, as to the declaration of cash dividends or the repurchase of Company stock.At November 30, 2004, the Company was in compliance with all covenants.

The Revolver, the 5.36% term notes and the 7.92% term notes are secured by substantially all of the Company's assets. The industrial revenue bonds are supported by standby letters of credit that are issued under the Revolver. Certain note agreements contain provisions regarding the Company's ability to grant security interests or liens in association with other debt instruments. If the Company grants such a security interest or lien, then such notes will be secured equally and ratably as long as such other debt shall be secured.

Interest income and expense were as follows for the year ended November 30:

The following disclosure of the estimated fair value of the Company's debt is made in accordance with the requirements of SFAS 107,"Disclosures about Fair Value of Financial Instruments." The estimated fair value amounts have been determined by the Company using available market information and appropriate valuation methodologies. Considerable judgment is required to develop the estimated fair value, thus the estimates provided herein are not necessarily indicative of the amounts that could be realized in a current market exchange.

The estimated fair value of the Company's variable-rate debt approximates the carrying value of the debt since the variable interest rates are market-based, and the Company believes such debt could be refinanced on materially similar terms. The estimated fair value of the Company's fixed-rate, long-term debt is based on U.S. government notes at November 30, 2004 plus an estimated spread for similar securities with similar remaining maturities.