Harris Teeter 2009 Annual Report Download - page 49

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RUDDICK CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (continued)
applicable margin to the referenced interest rate 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 27, 2009, the Company was in compliance
with all financial covenants of the credit agreement. Issued letters of credit reduce the amount available for
borrowings under the revolving credit facility and amounted to $22,147,000 as of September 27, 2009. The
Company is charged a variable commitment fee based on the amount available for borrowings, which amounted
to $274,953,000 as of September 27, 2009. The commitment fee rate applied to the net unused balance was
0.120%, per annum for each of fiscal 2009, 2008 and 2007.
Covenants in certain of the Company’s long-term debt agreements limit the total indebtedness that the
Company may incur. The most restrictive of these covenants is a consolidated maximum leverage ratio and
a minimum fixed charge coverage ratio as defined in the Company’s credit agreement. As of September 27,
2009, the amount of additional debt that could be incurred within the limitations of the debt covenants exceeded
the additional borrowings available under the revolving credit facility. As such, management believes that the
limit on indebtedness does not restrict the Company’s ability to meet future liquidity requirements through
borrowings available under the Company’s revolving credit facility, including any liquidity requirements
expected in connection with the Company’s expansion plans for the foreseeable future.
Long-term debt at September 27, 2009 and September 28, 2008 was as follows (in thousands):
2009 2008
6.48% Senior Note due $7,143 annually through April, 2011 ..... $ 14,286 $ 21,428
7.72% Senior Note due April, 2017 ......................... 50,000 50,000
7.55% Senior Note due July, 2017 .......................... 50,000 50,000
Bank Term Loan due December, 2012, variable interest
(2.24% and 3.55% at September 27, 2009 and
September 28, 2008, respectively)....................... 100,000 100,000
Revolving Line of Credit, variable interest (1.00% and 4.46% at
September 27, 2009 and September 28, 2008, respectively)... 52,900 29,000
Capital lease obligations ................................. 96,241 66,558
Other obligations ....................................... 1,660 3,592
Total .............................................. 365,087 320,578
Less current portion .................................. 9,526 9,625
Total long-term debt .................................... $ 355,561 $ 310,953
Long-term debt maturities (including capital lease obligations) in each of the next five fiscal years are as
follows: 2010 - $9,526,000; 2011 - $10,374,000; 2012 - $2,647,000; 2013 - $155,623,000; 2014 - $2,877,000.
Total interest expense, net of amounts capitalized, on debt and capital lease obligations was $17,673,000,
$20,085,000 and $17,654,000 for fiscal 2009, 2008 and 2007, respectively. Capitalized interest totaled $2,881,000,
$2,220,000 and $2,318,000 for fiscal 2009, 2008 and 2007, respectively.