NOTE 10: Debt


(a)	Short-Term Borrowings

The Company had borrowings at November 2, 2014, of $128.5 million under various short-term credit facilities that provided for up to $245.0 million in borrowings and letters of credit, and under which it was required to maintain cash collateral of $10.4 million. Available borrowing was $27.4 million under the Short-Term Financing Program and $36.5 million under the Short-Term Credit Facility as of November 2, 2014.

i) Short-Term Financing Program

The Short-Term Financing Program provided for a maximum of $200.0 million of borrowing, with available borrowing based on eligible receivable levels, supported by a credit agreement secured by receivables from the staffing services business that are sold to a wholly-owned, consolidated, bankruptcy-remote subsidiary and are available first to satisfy the lender. Interest is charged based on a LIBOR index, and as of November 2, 2014 the program expiration date was December 31, 2016. The program is subject to termination under certain circumstances including the default rate on receivables, as defined, exceeding a specified threshold or the rate of collections on receivables failing to meet a specified threshold. At November 2, 2014, the Company was in compliance with the program covenants.

At November 2, 2014 and November 3, 2013, the Company had outstanding borrowing under the program of $120.0 million and $142.0 million, respectively, and bore a weighted average annual interest rate of 1.6% and 1.5%, respectively, which is inclusive of certain facility and program fees.

ii) Short-Term Credit Facility

The Short-Term Credit Facility provided for up to $45.0 million of borrowing in various currencies secured by cash collateral covering 105% of certain baseline amounts. The facility is subject to a facility fee and borrowings bear various interest rate options calculated using a combination of LIBOR and prime rates plus a margin over those rates. The facility expires on March 31, 2015. The Short-Term Credit Facility contains a covenant that limits cash dividends, capital stock purchases and redemptions in any one fiscal year to the greater of $5.0 million or 50% of the prior year’s consolidated net income, as defined. At November 2, 2014, the Company was in compliance with the facility covenants.

At November 2, 2014 and November 3, 2013 the Company had drawn under the facility $8.5 million and $22.3 million, respectively, in various currencies used to hedge the Company’s net investment in certain foreign subsidiaries. At November 2, 2014 and November 3, 2013 borrowings bore a weighted average annual interest rate of 1.8% and 2.2% respectively, inclusive of the facility fee.


(b)	Long-Term Debt

The Company has $8.1 million outstanding at November 2, 2014 under a twenty-year fully amortizing loan that ends on October 1, 2021, secured by a deed of trust on certain land and buildings, which bears interest at 8.2% per annum and requires principal and interest payments of $0.4 million per quarter.

Long-term debt consists of the following (in thousands):



	November 2, 2014		November 3, 2013
8.2% term loan	$	8,127	$	8,966
Less amounts due within one year	911		839
Total long-term debt	$	7,216	$	8,127

Principal payment maturities on long-term debt outstanding at November 2, 2014 are (in thousands):



Fiscal year	Amount
2015	$	911
2016	988
2017	1,072
2018	1,164
2019	1,263
Thereafter	2,729
Total	$	8,127