Nine Months Ended
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Financing Activities. Net cash used in financing activities decreased by
$38.9 million. The decrease was primarily due to no principal payments toward the term loan during the nine months ended July 27, 2013, as this was fully paid off in the fourth quarter of fiscal year 2012.The decrease in net cash used in financing activities was partially offset by higher repurchases of our Company's stock and lower proceeds from the issuance of common stock during the nine months ended July 27, 2013.
Manufacturing and Purchase Commitments. We have manufacturing arrangements with contract manufacturers under which we provide twelve-month product forecasts and place purchase orders in advance of the scheduled delivery of products to our customers. Our purchase commitments reserve reflects our estimate of purchase commitments we do not expect to consume in normal operations, in accordance with our policy (see Note 9, "Commitments and Contingencies," of the Notes to Condensed Consolidated Financial Statements). Income Taxes. We accrue U.S. income taxes on the earnings of our foreign subsidiaries unless the earnings are considered indefinitely reinvested outside of the U.S. We intend to reinvest current and accumulated earnings of our foreign subsidiaries for expansion of our business operations outside the U.S. for an indefinite period of time. Our existing cash and cash equivalents totaled
$790.1 millionas of July 27, 2013. Of this amount, approximately 65% was held by our foreign subsidiaries. We do not currently anticipate a need of these funds held by our foreign subsidiaries for our domestic operations. Under current tax laws and regulations, if these funds are distributed to the U.S. in the form of dividends or otherwise, we may be subject to additional U.S. income taxes and foreign withholding taxes. The IRSand other tax authorities regularly examine our income tax returns (see Note 13, "Income Taxes," of the Notes to Condensed Consolidated Financial Statements). We believe we have adequate reserves for all open tax years. Senior Secured Credit Facility. In October 2008, we entered into a credit facility agreement for (i) a five-year $1,100.0 millionterm loan facility and (ii) a five-year $125.0 millionrevolving credit facility, which includes a $25.0 millionswing line loan sub-facility and a $25.0 millionletter of credit sub-facility (the "Credit Agreement"). The Credit Agreement was subsequently amended in January 2010and June 2011to reduce interest rates on the term loan facility, and to provide us with greater operating flexibility, including extending the maturity date of the term loan facility to October 31, 2014, and removing certain restrictions on the repurchase of our shares, provided the consolidated senior secured leverage ratio is under 2.00 (see Note 8, "Borrowings," of the Notes to Condensed Consolidated Financial Statements). We prepaid the term loan in full, and there was no principal amount outstanding under the term loan facility as of July 27, 2013, and October 27, 2012. We have the following resources available under the Senior Secured Credit Facility to obtain short-term or long-term financing, if we need additional liquidity, as of July 27, 2013(in thousands): Original Amount July 27, 2013 Available Used Available