Revolving Credit Facility

9 Months Ended

Oct. 02, 2011

Revolving Credit Facility [Abstract]

3.	Revolving Credit Facility:


	October 2, 2011		January 2, 2011
	*(in thousands)*
Revolving credit facility borrowings	$	355,500	$	377,000

We maintained a $550.0 million revolving credit facility ("2007 Revolving Credit Facility") under a credit agreement dated October 19, 2007, with a syndicate of lenders. In October 2011, we amended and restated our 2007 Revolving Credit Facility, which among other things extended the maturity date to October 2016. The amended and restated revolving credit facility has an aggregate commitment of $500.0 million and was otherwise renewed with similar terms and conditions as our 2007 Revolving Credit Facility. See Note 11 for further discussion of the terms of our amended and restated revolving credit facility.

As of October 2, 2011, we had $355.5 million of borrowings outstanding and $10.7 million letters of credit, which remained undrawn under our 2007 Revolving Credit Facility. Based on the type of borrowing, our 2007 Revolving Credit Facility accrued interest at the London Interbank Offered Rate ("LIBOR") plus an applicable margin of 0.625% to 1.25%, determined based on our financial performance and debt levels; or alternatively, the higher of (i) the prime interest rate or (ii) the Federal Funds rate plus 0.50%. For the nine months ended October 2, 2011, borrowings under our 2007 Revolving Credit Facility incurred interest at LIBOR (ranging from 0.18% to 0.24%) plus 1.00% or prime (3.25%). We are required to pay a commitment fee ranging from 0.1% to 0.3%, depending on our financial performance and debt levels. The commitment fee is payable quarterly on any unused portion of our 2007 Revolving Credit Facility. All borrowings under our 2007 Revolving Credit Facility are unsecured, but we agreed not to pledge any of our existing assets to secure any other future indebtedness.

The weighted average effective interest rate incurred on our borrowings under our 2007 Revolving Credit Facility was 1.3% and 2.9%, for the three months ended October 2, 2011 and October 3, 2010, respectively, and was 2.1% and 3.0%, for the nine months ended October 2, 2011 and October 3, 2010, respectively.

Our 2007 Revolving Credit Facility also contained certain restrictions and conditions that, among other things, require us to comply with specified financial covenant ratios, including a consolidated fixed charge coverage ratio of not less than 1.5 to 1.0 and a consolidated maximum leverage ratio of not greater than 3.0 to 1.0, as defined in the agreement. Additionally, the terms of the 2007 Revolving Credit Facility limited the amount of common stock we could repurchase and the amount of cash dividends we could pay based on certain financial covenants and criteria. As of October 2, 2011, we were in compliance with all of these restrictions and covenants.