Debt

12 Months Ended

Jan. 01, 2012

Debt [Abstract]

Debt

9.    Debt

Debt was summarized as follows:

In thousands	Maturity		Interest Rate			Interest Paid		Jan. 1, 2012			Jan. 2, 2011
Senior Notes		2012		5.00	%		Semi-annually	$	150,000		$	150,000
Senior Notes		2015		5.30	%		Semi-annually		100,000			100,000
Senior Notes		2016		5.00	%		Semi-annually		164,757			164,757
Senior Notes		2019		7.00	%		Semi-annually		110,000			110,000
Unamortized discount on Senior Notes									(1,538	)		(1,694	)
Less: Current portion of debt									523,219 120,000			523,063 —
Long-term debt								$	403,219		$	523,063

The principal maturities of debt outstanding on January 1, 2012 were as follows:

In thousands
2012	$	150,000
2013		—
2014		—
2015		100,000
2016		164,757
Thereafter		108,462
Total debt	$	523,219

The Company has obtained the majority of its long-term debt financing, other than capital leases, from the public markets. As of January 1, 2012, the Company’s total outstanding balance of debt and capital lease obligations was $597.3 million of which $523.2 million was financed through publicly offered debt. The Company had capital lease obligations of $74.1 million as of January 1, 2012. The Company mitigates its financing risk by using multiple financial institutions and enters into credit arrangements only with institutions with investment grade credit ratings. The Company monitors counterparty credit ratings on an ongoing basis.

On September 21, 2011, the Company entered into a new $200 million five-year unsecured revolving credit agreement (“$200 million facility”) replacing the Company’s existing $200 million five-year unsecured revolving credit facility, dated March 8, 2007 scheduled to mature in March 2012. The new $200 million facility has a scheduled maturity date of September 21, 2016 and up to $25 million is available for the issuance of letters of credit. Borrowings under the agreement will bear interest at a floating base rate or a floating Eurodollar rate plus an interest rate spread, dependent on the Company’s credit rating at the time of borrowing. The Company must pay an annual facility fee of .175% of the lenders’ aggregate commitments under the facility. The $200 million facility contains two financial covenants: a cash flow/fixed charges ratio (“fixed charges coverage ratio”) and a funded indebtedness/cash flow ratio (“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 1.0 or higher. The operating cash flow ratio requires the Company to maintain a debt to operating cash flow ratio of 6.0 to 1.0 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 January 1, 2012 and January 2, 2011, the Company had no outstanding borrowings on either $200 million facility.

The Company has $150 million of Senior Notes which mature in November 2012. The Company expects to use a combination of available cash on hand, borrowings on the uncommitted line of credit and borrowings under the $200 million facility to repay the notes when due. The Company has classified $30 million of these Senior Notes due November 2012 as long-term representing the portion the Company expects to be paid using the $200 million facility.

In April 2009, the Company issued $110 million of unsecured 7% Senior Notes due 2019. The proceeds plus cash on hand were used to repay the $119.3 million debt maturity on May 1, 2009.

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 January 1, 2012 and January 2, 2011, the Company had no outstanding borrowings under the uncommitted line of credit.

The Company currently provides financing for Piedmont under an agreement that expires on December 31, 2015. Piedmont pays the Company interest on its borrowings at the Company’s average cost of funds plus 0.50%. The loan balance at January 1, 2012 was $17.8 million. The loan and interest were eliminated in consolidation.

As of January 1, 2012 and January 2, 2011, the Company had a weighted average interest rate of 5.9% and 5.8%, respectively, for its outstanding debt and capital lease obligations. The Company’s overall weighted average interest rate on its debt and capital lease obligations was 6.0%, 5.9% and 5.8% for 2011, 2010 and 2009, respectively. As of January 1, 2012, none of the Company’s debt and capital lease obligations of $597.3 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.