Note 8 - Notes Payable and Bank Credit Facility

9 Months Ended

Aug. 25, 2018

Notes to Financial Statements

Debt Disclosure [Text Block]

8

.

Notes Payable and Bank Credit Facility

Our notes payable consist of the following:

	August 25, 2018
Real estate notes payable	$	436
Less current portion		(436	)
Total long-term notes payable	$	-

	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	$	107
Fiscal 2019		329
	$	436

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

nine

months ended

August 25, 2018

and

$19

and

$76

for the

three

and

nine

months ended

August 26, 2017,

respectively.

Real Estate Notes Payable

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

$436

and

$747

at

August 25, 2018

and

November 25, 2017,

respectively. The mortgages each bear interest at a fixed rate of

6.73%.

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

$5,631

and

$5,727

at

August 25, 2018

and

November 25, 2017,

respectively. The current portion of these mortgages due within

one

year was

$436

and

$418

as of

August 25, 2018

and

November 25, 2017,

respectively.

Fair Value

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

August 25, 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 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. The credit facility will mature in

December 2018,

at which time we expect to obtain a new facility under substantially similar terms.

At

August 25, 2018,

we had

$1,382

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

$13,618.

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

$381.