Short-Term and Long-Term Debt

9 Months Ended

Sep. 30, 2012

Debt Disclosure [Abstract]

SHORT-TERM AND LONG-TERM DEBT

NOTE G – SHORT-TERM AND LONG-TERM DEBT

The Company had no outstanding balance on its line of credit at September 30, 2012 and December 31, 2011.

Long-term debt consists of the following:

($ in thousands)
	September 30, 2012			December 31, 2011
Note payable to a bank	$	262		$	290
Less current portion	(39		)	(37		)
	$	223		$	253

We have a long-term revolving line of credit of $30,000,000 that, as of September 30, 2012, had no outstanding balance. At the Company’s option, the interest rate on this line of credit can float at 2.50% over a selected LIBOR rate or can be fixed at 2.25% above LIBOR for a fixed rate term. During the term of this credit facility (which matures in October 2013), we can borrow at any time and partially or wholly repay any outstanding borrowings and then re-borrow, as necessary. Under the terms of the line of credit, we must maintain tangible net worth, defined as total equity, including noncontrolling interest, plus debt less intangible assets, of not less than $175,000,000 and liquid assets of not less than $25,000,000. At September 30, 2012 our tangible net worth was $307,647,000 and liquid assets were $75,044,000. A portion of our farm acreage secures this line of credit. The outstanding long-term debt, less current portion of $39,000, is $223,000 at September 30, 2012. This debt is being used to provide long-term financing for a building being leased to Starbucks and the debt is secured by the leased building and land. The balance of the long-term debt instrument listed above approximates the fair value of the instrument.