Credit Agreement

6 Months Ended

Jul. 03, 2021

Debt Disclosure [Abstract]

Credit Agreement

Credit Agreement

Our credit facility as of July 3, 2021, has a net aggregate commitment amount of $600 million. The credit facility is for general corporate purposes, to meet our seasonal working capital requirements and to repurchase our stock. The credit agreement provides the lenders with a collateral security interest in substantially all of our assets and those of our subsidiaries and requires us to comply with, among other things, a maximum leverage ratio (4.5x) and a minimum interest coverage ratio (3.0x). The credit agreement includes an accordion feature which allows us to increase the amount of the credit facility from $600 million to $800 million, subject to lenders' approval. Under the terms of the credit agreement, we pay a variable rate of interest and a commitment fee based on our leverage ratio. We were in compliance with all financial covenants as of July 3, 2021. The credit facility matures in February 2024.

The following table summarizes our borrowings under the credit facility ($ in thousands):

	July 3, 2021			January 2, 2021
Outstanding borrowings	$	382,200		$	244,200
Outstanding letters of credit	$	3,997		$	3,997
Additional borrowing capacity	$	213,803		$	201,803
Weighted-average interest rate	1.6		%	1.5		%