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DICK’S SPORTING GOODS, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
5. Accrued Expenses
Accrued expenses consist of the following as of the end of the fiscal periods (in thousands):
2011 2010
Accrued payroll, withholdings and benefits $ 104,227 $ 107,655
Accrued real estate taxes, utilities and other occupancy 66,464 74,914
Accrued property and equipment 27,764 21,565
Other accrued expenses 65,618 75,150
Total accrued expenses $ 264,073 $ 279,284
6. Debt
The Company’s outstanding debt at January 28, 2012 and January 29, 2011 was as follows (in
thousands):
2011 2010
Revolving line of credit $ - $ -
Capital leases 27,653 9,524
Financing leases 130,631 130,496
Other debt 738 821
Total debt 159,022 140,841
Less: current portion (7,426) (995)
Total long-term debt $ 151,596 $ 139,846
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 matures on December 5, 2016 and 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 interest rates per annum applicable to loans under the Credit Agreement will be, at the Company’s
option, equal to a base rate or an adjusted LIBO rate plus an applicable margin percentage. The
applicable margin percentage for base rate loans is 0.20% to 0.50% and for adjusted LIBO 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 investments; sell assets; and consolidate, merge
or transfer all or substantially all of the Company’s assets. In addition, the Credit Agreement requires
that the Company maintain a minimum adjusted availability of 7.5% of its borrowing base.
62 Dick’s Sporting Goods, Inc. 2011 Annual Report