Note 8 - Notes Payable and Bank Credit Facility

3 Months Ended

Mar. 02, 2019

Notes to Financial Statements

Debt Disclosure [Text Block]

8

.

Notes Payable and Bank Credit Facility

Real Estate Notes Payable

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

$183

and

$292

at

March 2, 2019

and

November 24, 2018,

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

$5,568

and

$5,599

at

March 2, 2019

and

November 24, 2018,

respectively. The entire balance of these mortgages is due within

one

year and is included in other current liabilities and accrued expenses in the accompanying condensed consolidated balance sheets.

Fair Value

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

March 2, 2019

and

November 24, 2018.

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

$25,000.

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 2021.

At

March 2, 2019,

we had

$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

$325.