Debt And Bank Credit Facilities

6 Months Ended

Jul. 02, 2011

8. DEBT AND BANK CREDIT FACILITIES

The Company's indebtedness as of July 2, 2011 and January 1, 2011 was as follows (in thousands):


	July 2, 2011			January 1, 2011
Senior notes	$	250,000		$	250,000
Term loan		165,000			165,000
Revolving credit facility		—			—
Other		27,326			21,893

		442,326			436,893
Less: Current maturities		(14,282	)		(8,637	)

Non-current portion	$	428,044		$	428,256

At July 2, 2011, the Company had $250.0 million of senior notes (the "Notes") outstanding. The Notes were sold pursuant to a Note Purchase Agreement (the "Agreement") by and among the Company and the purchasers of the Notes. The Notes were issued and sold in two series: $150.0 million in Floating Rate Series 2007A Senior Notes, Tranche A, due August 23, 2014, and $100.0 million in Floating Rate Series 2007A Senior Notes, Tranche B, due August 23, 2017. The Notes bear interest at a margin over the London Inter-Bank Offered Rate ("LIBOR"). These interest rates vary as LIBOR varies. At July 2, 2011, the interest rate of 0.9% was based on a margin over LIBOR.

On June 16, 2008, the Company entered into a Term Loan Agreement ("Term Loan") with certain financial institutions, whereby the Company borrowed an aggregate principal amount of $165.0 million. The Term Loan matures in June 2013, and borrowings generally bear interest at a variable rate equal to a margin over LIBOR. The margin varies with the ratio of the Company's total funded debt to consolidated earnings before interest, taxes, depreciation, and amortization ("EBITDA") as defined in the Term Loan. These interest rates also vary as LIBOR varies. At July 2, 2011, the interest rate of 0.9% was based on a margin over LIBOR.

On June 30, 2011, the Company entered into a new $500.0 million revolving credit facility (the "Facility") that replaced its existing credit facility which was set to mature in July 2012. The Facility permits the Company to borrow at interest rates based upon a margin above LIBOR, which margin varies with the ratio of total funded debt to EBITDA as defined in the Facility. These interest rates also vary as LIBOR varies. The Company pays a commitment fee on the unused amount of the Facility, which also varies with the ratio of total funded debt to EBITDA. The Facility matures in June 2016.

The Notes, the Term Loan, and the Facility require the Company to meet specified financial ratios and to satisfy certain financial condition tests. The Company was in compliance with all financial debt covenants as of July 2, 2011.

The Company has entered into interest rate swap agreements to manage fluctuations in cash flows resulting from interest rate risk. (See also Note 14 of Notes to Condensed Consolidated Financial Statements.)

At July 2, 2011, other notes payable of approximately $27.3 million were outstanding with a weighted average interest rate of 6.0%.

- 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.

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