FINANCING ARRANGEMENTS

3 Months Ended

Sep. 30, 2019

FINANCING ARRANGEMENTS:

The Company’s long-term debt consists of the following:

Revolving Credit Facility



	Maturity Date	Interest Rate	September 30, 2019		June 30, 2019
	(Fiscal Year)		(Dollars in thousands)
Revolving credit facility	2023	3.69%	$	90,000	$	90,000

As of September 30, 2019 and June 30, 2019, the Company has $90 million of outstanding borrowings under a $295.0 million revolving credit facility. At September 30, 2019 and June 30, 2019, the Company has outstanding standby letters of credit under the revolving credit facility of $21.5 million, primarily related to the Company's self-insurance program. The unused available credit under the facility was $183.5 million as of September 30, 2019 and June 30, 2019. Amounts outstanding under the revolving credit facility are due at maturity in March 2023.

Sale and Leaseback Transaction

The Company’s long-term financing liabilities consists of the following:



	Maturity Date	Interest Rate	September 30, 2019		June 30, 2019
	(Fiscal Year)		(Dollars in thousands)
Financial liability- Salt Lake City Distribution Center	2034	3.30%	$	17,187	$	17,354
Financial liability- Chattanooga Distribution Center	2034	3.70%	11,532		11,556
Long-term financing liability			$	28,719	$	28,910

In fiscal year 2019, the Company sold its Salt Lake City and Chattanooga Distribution Centers to an unrelated party. The Company is leasing the properties back for 15 years with the option to renew. As the Company plans to lease the property for more than 75% of its economic life, the sales proceeds received from the buyer-lessor are recognized as a financial liability. This financial liability is reduced based on the rental payments made under the lease that are allocated between principal and interest. As of September 30, 2019, the current portion of the Company’s financing liability was $0.9 million which was recorded in accrued expenses on the unaudited Condensed Consolidated Balance Sheet. The weighted average remaining lease term was 14.4 years and the weighted-average discount rate was 3.46% percent for financing leases as of September 30, 2019.

As of September 30, 2019, future lease payments due are as follows:



Fiscal Year	Salt Lake City		Chattanooga
Remainder of 2020	$	818	$	604
2021	1,157		817
2022	1,171		829
2023	1,186		842
2024	1,200		854
Thereafter	11,952		9,282
Total	$	17,484	$	13,228

The financing liability does not include interest. Future lease payments above are due per the lease agreement and include embedded interest. Therefore, the total payments do not equal the financing liability. As of September 30, 2019, total interest expense for financing leases was $0.3 million.

The Company was in compliance with all covenants and requirements of its financing arrangements as of and during the three months ended September 30, 2019.