Dick's Sporting Goods 2014 Annual Report Download - page 81

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55
DICK'S SPORTING GOODS, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)
7. Debt
The Company's outstanding debt consists of the following as of the end of the fiscal periods (in thousands):
2014 2013
Revolving line of credit $ — $ —
Capital leases 5,994 6,818
Other debt 456 557
Total debt 6,450 7,375
Less: current portion (537)(899)
Total long-term debt $ 5,913 $ 6,476
Revolving Credit Agreement – On December 5, 2011, the Company entered into a five-year credit agreement with Wells Fargo
Bank, National Association (the "Credit Agreement"), which replaced the Company's then existing credit facility that was
terminated. The Credit Agreement provides for a $500 million revolving credit facility, including up to $100 million in the form
of letters of credit and allows the Company, subject to the satisfaction of certain conditions, to request an increase of up to $250
million in borrowing availability to the extent that existing or new lenders agree to provide such additional revolving
commitments.
The Credit Agreement, which matures on December 5, 2016, is secured by a first priority security interest in certain property
and assets, including receivables, inventory, deposit accounts and other personal property of the Company, and is guaranteed by
the Company's domestic subsidiaries.
The annual interest rates applicable to loans under the Credit Agreement are, at the Company's option, a base rate or an adjusted
LIBOR rate plus, in each case, an applicable margin percentage. The applicable margin percentage for base rate loans is 0.20%
to 0.50% and for adjusted LIBOR rate loans is 1.20% to 1.50%, depending on the borrowing availability of the Company.
The Credit Agreement contains certain covenants that limit the ability of the Company to, among other things: incur or
guarantee additional indebtedness; pay distributions on, redeem or repurchase capital stock or redeem or repurchase
subordinated debt; make certain investments; sell assets; and consolidate, merge or transfer all or substantially all of the
Company's assets. In addition, the Credit Agreement contains a covenant that requires the Company to maintain a minimum
adjusted availability of 7.5% of its borrowing base. As of January 31, 2015, the Company was in compliance with the terms of
the credit agreement.
There were no borrowings under the Credit Agreement as of January 31, 2015 and February 1, 2014, respectively. As of
January 31, 2015, the Company had outstanding letters of credit and total borrowing capacity under the Credit Agreement of
$14.0 million and $486.0 million, respectively. The Company had $13.0 million of outstanding letters of credit and $487.0
million of total borrowing capacity as of February 1, 2014.
Capital Lease Obligations – The gross and net carrying values of assets under capital leases were $7.3 million and $0.8 million,
respectively, as of January 31, 2015, and $30.3 million and $16.3 million, respectively, as of February 1, 2014. The Company
also leases two buildings from an entity that is a related party to its Chairman and Chief Executive Officer, under a capital lease
entered into May 1, 1986 that expires in April 2021.