Credit Agreement

12 Months Ended

Jan. 01, 2022

Debt Disclosure [Abstract]

Credit Agreement

Credit Agreement

As of January 1, 2022, our credit facility had a total commitment amount of $825 million. The credit facility is for general corporate purposes, to meet our seasonal working capital requirements and to repurchase our stock. The credit agreement includes an accordion feature which allows us to increase the amount of the credit facility from $825 million to $1.2 billion, subject to lenders’ approval. 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). Under the terms of the credit agreement, we pay a variable rate of interest and a commitment fee based on our leverage ratio. The credit agreement matures in December 2026. We were in compliance with all financial covenants as of January 1, 2022.

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

	January 1, 2022			January 2, 2021
Outstanding borrowings	$	382,500		$	244,200
Outstanding letters of credit	$	3,997		$	3,997
Additional borrowing capacity	$	438,503		$	201,803
Weighted-average interest rate	1.6		%	1.5		%