Long-Term Debt and Other Borrowings

9 Months Ended

Oct. 02, 2011

Long-Term Debt and Other Borrowings [Abstract]

Long-Term Debt and Other Borrowings

Note 5 — Long-Term Debt and Other Borrowings

(In millions)	10/02/11			12/26/10
2010 Credit Facility:
Revolving credit facility	$	24.0		$	22.0
Term Loan		36.3			40.0
Capital lease obligations		1.4			1.4
Other notes		2.4			2.6
		64.1			66.0
Less current portion		(5.2	)		(4.0	)
	$	58.9		$	62.0

2010 Credit Facility. On December 23, 2010, the Company entered into a bank credit facility (the “2010 Credit Facility”) with a group of lenders consisting of a five year $60.0 million revolving credit facility and $40.0 million term loan.

Under the terms of the revolving credit facility, the Company may obtain other short-term borrowings of up to $10.0 million and letters of credit up to $25.0 million. Collectively, these other borrowings and letters of credit may not exceed the amount of unused borrowings under the 2010 Credit Facility. As of October 2, 2011, the Company had $1.0 million of outstanding letters of credit. Availability for short-term borrowings and letters of credit under the revolving credit facility was $35.0 million.

As of October 2, 2011, the Company was in compliance with the financial and other covenants of the 2010 Credit Facility. As of October 2, 2011, the Company’s weighted average interest rate for all outstanding indebtedness under the 2010 Credit Facility was 3.8%. As of October 3, 2010, the Company’s weighted average interest rate for all outstanding indebtedness under its then-existing credit facility was 7.2%.

Interest Rate Swap Agreements. On February 22, 2011, the Company entered into new interest rate swap agreements limiting the interest rate exposure on $30.0 million of the term loan debt to a fixed rate of 4.8%. The term of the swap agreements expires March 31, 2015.

The Company’s interest rate swap agreements are derivative instruments that are designated as cash flow hedges. The fair value gain or loss on the interest rate swaps is included as a component of the “Accumulated other comprehensive loss” (“AOCL”). The following tables summarize the fair value of the Company’s interest rate swap agreements and the effect on the financial statements:

Fair Values of Derivative Instruments

Derivative Liabilities
(In millions)	Balance Sheet Location	10/02/11		12/26/10
Interest rate swap agreements	Other current liabilities	$	—	$	0.1
Interest rate swap agreements	Deferred credits and other long-term liabilities		1.5		—

The Effect of Derivative Instruments on the Condensed Consolidated Statements of Operations

Forty Weeks ended October 2, 2011 and October 3, 2010

	Amount of Gain (Loss) Recognized in AOCL (effective  portion)					Location of Gain (Loss) Reclassified from AOCL to	Amount of Gain (Loss) Reclassified from AOCL to Income  (effective portion)
(In millions)	2011			2010		Income	2011			2010
Interest rate swap agreements, net of tax	$	(1.0	)	$	—	Interest expense, net	$	(0.1	)	$	(0.6	)
	$	(1.0	)	$	—		$	(0.1	)	$	(0.6	)