Note 10 - Notes Payable and Bank Credit Facility

12 Months Ended

Nov. 24, 2018

Notes to Financial Statements

Debt Disclosure [Text Block]

10. Notes Payable and Bank Credit Facility

Our notes payable consist of the following:

	November 24, 2018
Real estate notes payable	$	292
Less current portion		(292	)
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

All remaining principal outstanding at

November 24, 2018

will mature during fiscal

2019.

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,

$95

and

$204

for fiscal

2018,

2017

and

2016,

respectively.

Real Estate Notes Payable

Two of our retail real estate properties have been financed through commercial mortgages with interest rates of

6.73%.

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

$5,599

and

$5,727

at

November 24, 2018

and

November 25, 2017,

respectively. The total balance outstanding under these mortgages was

$293

and

$747

at

November 24, 2018

and

November 25, 2017,

respectively. The current portion of these mortgages due within

one

year was

$293

and

$418

as of

November 24, 2018

and

November 25, 2017,

respectively.

Fair Value

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

November 24, 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

4.

Bank Credit Facility 

Effective

November 15, 2018,

we amended the credit facility with our bank, increasing line of credit of up to

$25,000.

This amended credit facility, which matures in

December

of

2021,

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

We have

$2,798

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

$22,202.

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

$381.

Total interest paid during fiscal

2018,

2017

and

2016

was

$88,

$139

and

$353,

respectively.