Debt

12 Months Ended

Dec. 30, 2012

Debt [Abstract]

Debt

9.    Debt

Debt was summarized as follows:

In Thousands	Maturity		Interest Rate	Interest Paid	Dec. 30, 2012			Jan. 1, 2012
Revolving credit facility		2016	Variable	Varies	$	30,000		$	0
Line of credit		2013	Variable	Varies		20,000			0
Senior Notes		2012	5.00%	Semi-annually		0			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		2019				(1,371	)		(1,538	)
						423,386			523,219
Less: Current portion of debt						20,000			120,000
Long-term debt					$	403,386		$	403,219

The principal maturities of debt outstanding on December 30, 2012 were as follows:

In Thousands
2013	$	20,000
2014		0
2015		100,000
2016		194,757
2017		0
Thereafter		108,629
Total debt	$	423,386

The Company has obtained the majority of its long-term debt financing, other than capital leases, from the public markets. As of December 30, 2012, the Company’s total outstanding balance of debt and capital lease obligations was $493.0 million of which $373.4 million was financed through publicly offered debt. The Company had capital lease obligations of $69.6 million as of December 30, 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 $200 million five-year unsecured revolving credit agreement (“$200 million facility”) replacing the Company’s previous $200 million five-year unsecured revolving credit facility. The $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 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 December 30, 2012, the Company had $30.0 million of outstanding borrowings on the $200 million facility and had $170 million available to meet its cash requirements. On January 1, 2012, the Company had no outstanding borrowings on the $200 million facility.

On February 10, 2010, the Company entered into an agreement for an uncommitted line of credit. Under this agreement, which is still in place, 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 December 30, 2012, the Company had $20.0 million outstanding under the uncommitted line of credit at a weighted average interest rate of .94%. On January 1, 2012, the Company had no outstanding borrowings under the uncommitted line of credit.

The Company used a combination of available cash on hand, borrowings on the uncommitted line of credit and borrowings under the $200 million facility to repay $150 million of the Company’s Senior Notes that matured in November 2012.

As of December 30, 2012 and January 1, 2012, the Company had a weighted average interest rate of 5.9% and 6.0%, 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 6.1%, 6.0% and 5.9% for 2012, 2011 and 2010, respectively. As of December 30, 2012, $50.0 million of the Company’s debt and capital lease obligations of $493.0 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.