FINANCING ARRANGEMENTS

3 Months Ended

Sep. 30, 2020

Debt Disclosure [Abstract]

FINANCING ARRANGEMENTS

FINANCING ARRANGEMENTS:

The Company’s long-term debt consists of the following:

Revolving Credit Facility

	Maturity Date	September 30, 2020	September 30, 2020		June 30, 2020
	(Fiscal Year)	(Interest rate %)	(Dollars in thousands)
Revolving credit facility	2023	5.50%	$	177,500	$	177,500

At September 30, 2020, cash and cash equivalents totaled $85.0 million. As of September 30, 2020, the Company has $177.5 million of outstanding borrowings under a $295.0 million revolving credit facility. At September 30, 2020, the Company has outstanding standby letters of credit under the revolving credit facility of $18.7 million, primarily related to the Company's self-insurance program. The unused available credit under the facility was $98.8 million as of September 30, 2020. The Company's liquidity, which includes the unused available balance under the credit facility and unrestricted cash and cash equivalents, totaled $183.8 million as of September 30, 2020. The revolving credit facility has a minimum liquidity covenant of $75 million. As of September 30, 2020, the Company had cash, cash equivalents and restricted cash of $93.5 million and current liabilities of $236.3 million.

The Company was is in compliance with all covenants and other requirements of the financing arrangements as of September 30, 2020 and believes it will continue to be in compliance for at least one year from our filing date.

Sale and Leasebacks

The Company’s long-term financing liabilities consists of the following:

	Maturity Date	Interest Rate	September 30, 2020		June 30, 2020
	(Fiscal Year)		(Dollars in thousands)
Financial liability - Salt Lake City Distribution Center	2034	3.30%	$	16,604	$	16,773
Financial liability - Chattanooga Distribution Center	2034	3.70%	11,054		11,208
Long- term financing liability			$	27,658	$	27,981

In fiscal year 2019, the Company sold its Salt Lake City and Chattanooga Distribution Centers to an unrelated party. The Company is leasing the properties back for 15 years with the option to renew. As the Company plans to lease the property for more than 75% of its economic life, the sales proceeds received from the buyer-lessor are recognized as a financial liability. This financial liability is reduced based on the rental payments made under the lease that are allocated between principal and interest. As of September 30, 2020, the current portion of the Company’s lease liability was $1.0 million, which was recorded in accrued expenses on the unaudited Condensed Consolidated Balance Sheet. The weighted average remaining lease term was 13.4 years and the weighted-average discount rate was 3.46% for financing leases as of September 30, 2020.

As of September 30, 2020, future lease payments due are as follows:

Fiscal year	Salt Lake City Distribution Center		Chattanooga Distribution Center
	(Dollars in thousands)
Remainder of 2021	$	870	$	613
2022	1,171		829
2023	1,186		842
2024	1,200		854
2025	1,215		867
Thereafter	10,683		8,414
Total	$	16,325	$	12,419

The financing liability does not include interest. Future lease payments above are due per the lease agreement and include embedded interest. Therefore, the total payments do not equal the financing liability. Total interest expense for the financing lease was $0.3 million for the three months ended September 30, 2020.