Note 8 - Notes Payable and Bank Credit Facility

6 Months Ended

May 26, 2018

Notes to Financial Statements

Debt Disclosure [Text Block]

8

.

Notes Payable and Bank Credit Facility

Our notes payable consist of the following:

	May 26, 2018
Real estate notes payable	$	541
Less current portion		(432	)
Total long-term notes payable	$	109

	November 25, 2017
	Principal Balance			Unamortized Discount			Net Carrying Amount
Zenith acquisition note payable	$	3,000		$	(13	)	$	2,987
Real estate notes payable		747			-			747
Total notes payable		3,747			(13	)		3,734
Less current portion		(3,418	)		13			(3,405	)
Total long-term notes payable	$	329		$	-		$	329

The future maturities of our notes payable are as follows:

Remainder of fiscal 2018	$	212
Fiscal 2019		329
	$	541

Zenith

Acquisition Note Payable

The final installment of the Zenith acquisition note was paid in full on

February 2, 2018.

Interest expense resulting from the amortization of the discount was

$13

for the

six

months ended

May 26, 2018

and

$19

and

$57

for the

three

and

six

months ended

May 27, 2017,

respectively.

Real Estate Notes Payable

Certain of our retail real estate properties have been financed through commercial mortgages with outstanding principal totaling

$541

and

$747

at

May 26, 2018

and

November 25, 2017,

respectively. The mortgages bear interest at fixed rates of

6.73%.

They are collateralized by the respective properties with net book values totaling approximately

$5,663

and

$5,727

at

May 26, 2018

and

November 25, 2017,

respectively. The current portion of these mortgages due within

one

year was

$432

and

$418

as of

May 26, 2018

and

November 25, 2017,

respectively.

Fair Value

We believe that the carrying amount of our notes payable approximates fair value at both

May 26, 2018

and

November 25, 2017.

In estimating the fair value, we utilize current market interest rates for similar instruments. The inputs into these fair value calculations reflect our market assumptions and are

not

observable. Consequently, the inputs are considered to be Level

3

as specified in the fair value hierarchy in ASC Topic

820,

Fair Value Measurements and Disclosures

. See Note

3.

Bank

Credit Facility

Our credit facility with our bank provides for a line of credit of up to

$15,000.

This credit facility, which matures in

December

of

2018,

is unsecured and contains covenants requiring us to maintain certain key financial ratios. We are in compliance with all covenants under the agreement and expect to remain in compliance for the foreseeable future.

At

May 26, 2018,

we had

$2,249

outstanding under standby letters of credit against our line, leaving availability under our credit line of

$12,751.

In addition, we have outstanding standby letters of credit with another bank totaling

$381.