Henry Schein 2009 Annual Report Download - page 91

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HENRY SCHEIN, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)
(In thousands, except share and per share data)
79
Note 8 – Plans of Restructuring – (Continued)
In addition, during the first quarter of 2010, we expect to complete an additional restructuring in order
to further reduce operating expenses. This restructuring includes headcount reductions, as well as the
closing of facilities. The restructure is primarily concentrated in our European operations and is part of our
overall plan to increase international operating margins. These restructuring costs are expected to be in the
$10 million to $12 million range ($7 million to $9 million after taxes) and are expected to be reported in
the first quarter of 2010. However, timing of certain actions may cause some restructuring costs to be
reported later.
Note 9 – Debt
Bank Credit Lines
On September 5, 2008, we entered into a new $400.0 million revolving credit facility with a $100.0
million expansion feature. The $400.0 million credit line expires in September 2013. This credit line
replaced our then existing $300.0 million revolving credit line, which would have expired in May 2010.
The interest rate is based on USD LIBOR plus a spread based on our leverage ratio at the end of each
financial reporting quarter. The agreement provides, among other things, that we maintain certain interest
coverage and maximum leverage ratios, and contains restrictions relating to subsidiary indebtedness, liens,
employee and shareholder loans, disposal of businesses and certain changes in ownership. As of
December 26, 2009, there were no borrowings outstanding under this revolving credit facility and there
were $10.2 million of letters of credit provided to third parties.
As of December 26, 2009, we had various short-term bank credit lines available, of which
approximately $0.9 million was outstanding. As of December 26, 2009, such credit lines, which are
uncollateralized, had a weighted average interest rate of 3.8%.
Long-term debt
Long-term debt consisted of the following:
December 26,
2009
December 27,
2008 (1)
Senior notes ....................................................................................................... 20,453$ 172,501$
Convertible debt (net of discount of $4.0 million and $10.0 million) ............... 235,993 230,002
Notes payable to banks, at a weighted average interest rate of 4.8% ................. 19 623
Various uncollateralized loans payable with interest, in varying
installments through 2014 ............................................................................. 4,836 2,677
Capital lease obligations (see Note 15) ............................................................. 5,632 7,250
Total .................................................................................................................. 266,933 413,053
Less current maturities ....................................................................................... (23,560) (156,405)
Total long-term debt .................................................................................... 243,373$ 256,648$
(1) Adjusted to reflect the effects of the adoption of provisions contained within ASC Topic 470-20, “Debt with Conversion and
Other Options.”
Our $20.0 million of remaining senior notes bear interest at a fixed rate of 6.7% per annum and mature
on September 27, 2010. Interest on our senior notes is payable semi-annually.