Indebtedness

6 Months Ended

Jul. 02, 2011

Indebtedness

Indebtedness

9. Indebtedness

        In 2004, CRA completed a private placement of $90.0 million of 2.875% convertible senior subordinated debentures. On June 15, 2011, the Company repurchased 100% of the principal amount of the outstanding debentures plus accrued and unpaid interest, which amounted to $21.9 million and $0.3 million, respectively.

        As of January 1, 2011, the principal amount of the outstanding convertible debentures totaled $21.9 million. The $21.7 million convertible debt balance as of January 1, 2011 represented the principal amount of $21.9 million, net of the unamortized debt discount totaling $0.2 million. As of July 2, 2011 and January 1, 2011, the carrying amount of the equity component of the convertible debentures was $7.7 million, respectively, and was included in common stock. The fair value of the Company's convertible debentures payable based upon dealer quotes at January 1, 2011 was approximately $21.7 million.

        The effective interest rate for the second quarter of fiscal 2011 and 2010 was 5.7% and 5.6%, respectively. The effective interest rate for the fiscal year to date period ended July 2, 2011 and May 14, 2010 was 5.7% and 5.5%, respectively.

        For the second quarter of fiscal 2011 and the fiscal year to date period ended July 2, 2011, the contractual interest, amortization of prepaid debt issuance costs, and amortization of the discount included in interest expense was $0.3 million and $0.6 million, respectively. For the second quarter of fiscal 2010 and the fiscal year to date period ended May 14, 2010, the contractual interest, amortization of prepaid debt issuance costs, and amortization of the discount included in interest expense was $0.7 million and $1.5 million, respectively.

        The Company has a $60.0 million revolving line of credit with its bank that provides CRA with the additional flexibility to meet any unforeseen financial requirements. The amounts available under this revolving line of credit are constrained by various financial covenants and are reduced by certain letters of credit outstanding. As of July 2, 2011, there were no amounts outstanding under this revolving line of credit and $0.9 million in letters of credit were outstanding.