Note 6 - Long-term Debt

9 Months Ended

Sep. 02, 2017

Notes to Financial Statements

Debt Disclosure [Text Block]

Note

6:

Long-Term Debt

On

February 14, 2017,

we issued

$300,000

aggregate principal of

10

-year unsecured public notes (“

4.000%

Notes”) due

February 15, 2027

with a fixed coupon of

4.00

percent.  Proceeds from this debt issuance were used to repay

$138,000

outstanding under the revolving credit facility and prepay

$158,750

of our term loan.  We entered into interest rate swap agreements to convert

$150,000

of the

$300,000

4.000%

Notes to a variable interest rate of

1

-month LIBOR (in advance) plus

1.86

percent.

On

April 12, 2017,

we entered into a credit agreement with a consortium of financial institutions under which we established a

$400,000

multi-currency revolving credit facility and a

$100,000

term loan that we can use to repay existing indebtedness, finance working capital needs, finance acquisitions and for general corporate purposes. Interest on the revolving credit facility is payable at LIBOR plus

1.10

percent. A facility fee of

0.15

percent is payable quarterly. The interest rate on the term loan is payable at LIBOR plus

1.25

percent. The interest rates and the facility fee are based on a ratings grid. The credit agreement replaced the previous credit agreement entered into on

October 31, 2014.

The

April 12, 2017

credit agreement expires

April 12, 2022.

During the

second

quarter ended

June 3, 2017,

we entered into an interest rate swap agreement to convert

$125,000

of our Series E private placement to a variable interest rate of

1

-month LIBOR (in arrears) plus

2.22

percent. See Note

13

for further discussion of the interest rate swaps.

We adopted ASU

No.

2015

-

03,

Interest-Imputation of Interest (Subtopic

835

-

30

): Simplifying the Presentation of Debt Issue Costs

, during the quarter ended

March 4, 2017

on a retrospective basis. The impact of adopting ASU

No.

2015

-

03

on our financial statements was the reclassification of deferred debt issuance costs related to our long-term debt, with the exception of our revolving credit line, from an asset to a direct deduction to the corresponding debt.  Reclassifications from an asset to a direct deduction to the corresponding debt of

$2,386

was included in our Condensed Consolidated Balance Sheets as of

December 3, 2016.