Harris Teeter 2007 Annual Report Download - page 45

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41
RUDDICK CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (continued)
Future minimum lease commitments (excluding leases assigned - see below) and total minimum sublease
rental income to be received under non-cancelable subleases at September 30, 2007 were as follows (in
thousands):
Fiscal Year
Operating
Leases Subleases
Capital
Leases
2008 ..................................... $ 81,296 $ (2,455 ) $ 4,335
2009 ..................................... 88,072 (2,242 ) 5,233
2010 ..................................... 90,650 (2,105 ) 5,248
2011 ..................................... 89,474 (1,844 ) 5,263
2012 ..................................... 88,021 (1,698 ) 5,278
Later years . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 938,808 (5,205 ) 81,105
Total minimum lease obligations (receivables) . . . . $ 1,376,321 $ (15,549 ) 106,462
Amount representing interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (67,135 )
Present value of net minimum obligation (included with long-term debt) . . . . . $ 39,327
In connection with the closing of certain store locations, Harris Teeter has assigned leases to other
merchants with recourse. These leases expire over the next 14 years and the future minimum lease payments
totaling $66,946,000 over this period have been assumed by these merchants.
LONG-TERM DEBT
Long-term debt at September 30, 2007 and October 1, 2006 was as follows (in thousands):
2007 2006
6.48% Senior Note due $7,143 annually through April, 2011 . . . . . . . $ 28,572 $ 35,714
7.72% Senior Note due April, 2017 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50,000 50,000
7.55% Senior Note due July, 2017 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50,000 50,000
Revolving Line of Credit, variable interest . . . . . . . . . . . . . . . . . . . . . 91,000 80,800
Capital lease obligations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39,327 15,254
Other obligations ......................................... 5,493 5,963
Total ................................................. 264,392 237,731
Less current portion ..................................... 8,535 9,462
Total long-term debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 255,857 $ 228,269
Long-term debt maturities (including capital lease obligations) in each of the next five fiscal years are as
follows: 2008 - $8,535,000; 2009 - $8,192,000; 2010 - $ 10,731,000; 2011 - $ 99,167,000; 2012 - $ 1,117,000.
On June 7, 2006, the Company and seven banks entered into a revolving line of credit (“Credit Agreement”)
that provides for financing up to $350 million, with an optional increase of up to $100 million with the consent
of the lenders, through its termination date on June 7, 2011. The Credit Agreement also includes two annual
extension options of one year each if granted by the banks. The amount which may be borrowed from time to
time and the interest rate on any outstanding borrowings are each dependent on a leverage factor. The leverage
factor is based on a ratio of rent-adjusted consolidated funded debt divided by earnings before interest, taxes,
depreciation, amortization and operating rents, as set forth in the Credit Agreement. The more significant of
the financial covenants which the Company must meet during the term of the Credit Agreement include a
maximum leverage ratio and a minimum fixed charge coverage ratio. As of September 30, 2007, the Company