Cracker Barrel 2015 Annual Report Download - page 38

4INVENTORIES
Inventories were comprisedof the following at:
July 31, August 1,
2015 2014
Retail $115,777 $128,386
Restaurant 22,212 22,371
Supplies 15,069 14,669
Total $153,058 $165,426
5DEBT
On January 8, 2015, the Company entered into a ve-year
$750,000 revolving creditfacility (the “Revolving Credit
Facility”). e Revolving Credit Facility replaced a term loan
totaling $181,250 and a $218,750 revolving creditfacility
(the “Prior Credit Facility”). In the second quarterof 2015,
loan acquisition costs associated with the Revolving Credit
Facility were capitalized in the amount of $3,537 and will be
amortizedover the ve-year term of the Revolving Credit
Facility.Loan acquisition costs of $412 associated with the
Prior Credit Facility were wrien oin the second quarterof
2015 and are recorded in interestexpense in the Consoli-
dated Statement of Income.
Long-term debt consisted of the following at:
July 31, August 1,
2015 2014
Revolving Credit Facility expiring
on January 8, 2020 $400,000 $—
Revolving Credit Facility expiring
on July 8, 2016 —212,500
Term loan payable on or before July 8, 2016 —187,500
400,000 400,000
Current maturities—25,000
Long-termdebt $400,000 $375,000
At July 31, 2015, the Companyhad $11,530 of standby
leers of credit, which reduce the Company’s borrowing
availability under the Revolving Credit Facility (seeNote
15). At July 31, 2015, the Companyhad $338,470 in
borrowing availability under the Revolving Credit Facility.
In accordance with the Revolving Credit Facility, out-
standing borrowingsbear interest,at the Company’s election,
either at LIBORor prime plus a percentage point spread
based on certain specied nancial ratios. At July 31, 2015
andAugust 1, 2014, the Company’s outstanding borrowings
were swapped at a weighted average interest rates of 2.96%
and3.73%, respectively (see Note 6 for information on the
Company’sinterest rate swaps).
e Revolving Credit Facility contains customary nancial
covenants, which include maintenance of a maximum
consolidated total leverage ratio and a minimum consolidated
interest coverage ratio. At July 31, 2015 and August 1, 2014,
the Companywas in compliance with alldebt covenants.
e Revolving Credit Facility also imposes restrictions on
the amount of dividends the Companyis permied to pay
andthe amount of sharesthe Companyis permied to
repurchase. Under the Revolving Credit Facility, provided
there is no default existing andthe total of the Company’s
availability under the Revolving Credit Facility plus the
Company’scash and cash equivalents on hand is at least
$100,000 (the “cash availability”), the Companymay
declareand pay cash dividends on sharesof its common stock
andrepurchase shares of its common stock (1) in an
unlimited amount if at the time such dividend or repurchase
is made the Company’s consolidated total leverage ratio
is 3.00 to 1.00 or less and (2) in an aggregate amount not
to exceed $100,000 in any scal year if the Company’s
consolidated total leverage ratio is greater than 3.00 to 1.00
at the time the dividend or repurchase is made; notwith-
standing (1) and (2), so long as immediately aer giving
eectto the payment of any such dividends, cash availability
is at least $100,000, the Companymay declareand pay cash
dividends on sharesof its common stock in an aggregate
amount not to exceed in any scal year the product of the
aggregate amount of dividends declared in the fourth quarter
of the immediately precedingscal year multiplied by four.
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