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Subsequent Events
6 Months Ended
Jan. 31, 2012
Subsequent Events [Abstract]  
Subsequent Events

NOTE M — Subsequent Events

On February 1, 2012, the Company and certain of its subsidiaries entered into an unsecured $300 million revolving credit agreement with a group of six banks that replaced and terminated the Company’s previous $200 million revolving credit agreement that had been entered into on October 5, 2006 and amended on March 18, 2008.

 

Under the new credit agreement, which has a final maturity date of February 1, 2017, the Company has the option to select either a base interest rate (based upon the higher of the federal funds rate plus one-half of 1% or the prime rate of Bank of America plus a margin based on the Company’s consolidated leverage ratio) or a Eurocurrency interest rate (at the LIBOR rate plus a margin based on the Company’s consolidated leverage ratio). The new credit agreement is guaranteed by the Company’s domestic subsidiaries and contains various financial covenants, including a debt-to-EBITDA ratio of 3.25-to-1.0 and an interest coverage ratio of 3.0-to-1.0. The Company intends to use the flexibility provided by the new credit agreement to fund future acquisitions, for general corporate purposes, and to refinance existing debt.

On February 15, 2012, the Board of Directors declared a quarterly cash dividend to shareholders of the Company’s Class A and Class B Common Stock of $0.185 per share payable on April 30, 2012, to shareholders of record at the close of business on April 10, 2012.