Dick's Sporting Goods 2015 Annual Report Download - page 56

Download and view the complete annual report

Please find page 56 of the 2015 Dick's Sporting Goods annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 84

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84

7. Debt
The Company's outstanding debt consists of the following as of the end of the fiscal periods (in thousands):
2015 2014
Revolving line of credit $—$—
Capital leases 5,565 5,994
Other debt 348 456
Total debt 5,913 6,450
Less: current portion (589)(537)
Total long-term debt $5,324 $5,913
Revolving Credit Agreement€– On August 12, 2015, the Company entered into a five-year senior secured revolving credit
agreement (the "Credit Agreement") that amended and restated the Company's then existing credit facility. The Credit
Agreement provides for a $1 billion revolving credit facility, including up to $150 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.
Subject to specified conditions, the Credit Agreement matures on August 12, 2020. It is secured by a first priority security
interest in certain property and assets, including receivables, inventory, deposit accounts, securities 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, equal to 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 0.125% to 0.375% and for adjusted LIBOR rate loans is 1.125% to 1.375%, 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 30, 2016, the Company was in compliance with the terms of
the Credit Agreement.
Credit Agreement information as of the fiscal periods ended (in thousands):
2015 2014
Outstanding borrowings under Credit Agreement $—$—
Remaining borrowing capacity under Credit Agreement $985,969 $485,969
Outstanding letters of credit under Credit Agreement $14,031 $14,031
DICK'S SPORTING GOODS,€INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)
50