Debt

6 Months Ended

Jul. 03, 2011

Debt [Abstract]

Debt

10. Debt

Debt was summarized as follows:

			Interest			Interest	July 3,			Jan. 2,			July 4,
In Thousands	Maturity		Rate			Paid	2011			2011			2010
Revolving Credit Facility		2012		—		Varies	$	—		$	—		$	15,000
Line of Credit				—		Varies		—			—			5,000
Senior Notes		2012		5.00	%	Semi-annually		150,000			150,000			150,000
Senior Notes		2015		5.30	%	Semi-annually		100,000			100,000			100,000
Senior Notes		2016		5.00	%	Semi-annually		164,757			164,757			164,757
Senior Notes		2019		7.00	%	Semi-annually		110,000			110,000			110,000
Unamortized discount on Senior Notes		2019						(1,618	)		(1,694	)		(1,769	)
								523,139			523,063			542,988
Less: Current portion of debt								—			—			5,000
Long-term debt							$	523,139		$	523,063		$	537,988

On March 8, 2007, the Company entered into a $200 million revolving credit facility (“$200 million facility”). The $200 million facility matures in March 2012 and includes an option to extend the term for an additional year at the discretion of the participating banks. The $200 million facility bears interest at a floating base rate or a floating rate of LIBOR plus an interest rate spread of .35%, dependent on the length of the term of the interest period. The Company must pay an annual facility fee of .10% of the lenders’ aggregate commitments under the facility. Both the interest rate spread and the facility fee are determined from a commonly-used pricing grid based on the Company’s long-term senior unsecured debt rating. The $200 million facility contains two financial covenants: a fixed charges coverage ratio and a debt to operating cash flow ratio, each as defined in the credit agreement. The fixed charges coverage ratio requires the Company to maintain a consolidated cash flow to fixed charges ratio of 1.5 to 1 or higher. The operating cash flow ratio requires the Company to maintain a debt to cash flow ratio of 6.0 to 1 or lower. The Company is currently in compliance with these covenants. These covenants do not currently, and the Company does not anticipate they will, restrict its liquidity or capital resources. On July 3, 2011 and January 2, 2011, the Company had no outstanding borrowings on the $200 million facility. On July 4, 2010, the Company had $15.0 million of outstanding borrowings on the $200 million facility. The Company intends to refinance the revolving credit facility on a long-term basis in 2011.

On February 10, 2010, the Company entered into an agreement for an uncommitted line of credit. Under this agreement, the Company may borrow up to a total of $20 million for periods of 7 days, 30 days, 60 days or 90 days at the discretion of the participating bank. On July 3, 2011 and January 2, 2011, the Company had no outstanding borrowings under the uncommitted line of credit. On July 4, 2010, the Company had $5.0 million of outstanding borrowings on the uncommitted line of credit.

The Company had a weighted average interest rate of 5.9%, 5.8% and 5.7% for its debt and capital lease obligations as of July 3, 2011, January 2, 2011 and July 4, 2010, respectively. The Company’s overall weighted average interest rate on its debt and capital lease obligations was 6.0% for YTD 2011 compared to 5.8% for YTD 2010. As of July 3, 2011, none of the Company’s debt and capital lease obligations of $599.1 million were subject to changes in short-term interest rates.

The Company’s public debt is not subject to financial covenants but does limit the incurrence of certain liens and encumbrances as well as the incurrence of indebtedness by the Company’s subsidiaries in excess of certain amounts.

All of the outstanding long-term debt has been issued by the Company with none being issued by any of the Company’s subsidiaries. There are no guarantees of the Company’s debt.