Sally Beauty Supply 2007 Annual Report Download - page 107

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$0.7 million and $1.3 million for contingent rents for the years ended September 30, 2007, 2006 and 2005, respectively.
Contingencies
Legal Proceedings and Other
There were no material legal proceedings pending against the Company or its subsidiaries, as of September 30, 2007. The Company is involved in various claims
and lawsuits incidental to the conduct of its business in the ordinary course. The Company does not believe that the ultimate resolution of these matters will have
a material adverse impact on the Company's consolidated financial position, statements of earnings or cash flows.
The Company provides healthcare benefits to essentially all of its full-time employees. The Company is largely self-funded for the cost of the healthcare plan,
other than certain fees and out-of-pocket amounts paid by the employees. In addition, the Company retains a substantial portion of the risk related to certain
workers' compensation, general liability and automobile and property insurance. The Company records an estimated liability for the ultimate cost of claims
incurred and unpaid as of the balance sheet date. The estimated liability is included in accrued expenses (current portion) and other liabilities (long-term portion)
in our consolidated balance sheets. The Company carries insurance coverage in such amounts in excess of its self-insured retention which management believes
to be reasonable.
Liabilities for loss contingencies, arising from claims, assessments, litigation, fines, penalties and other sources are recorded when it is probable that a liability
has been incurred and the amount of the assessment can be reasonably estimated. The Company has no significant liabilities for loss contingencies at
September 30, 2007 and 2006.
12. Long-Term Debt
Details of long-term debt are as follows (in thousands):
September 30,
2007
Maturity dates
(Fiscal Year)
Interest Rates
ABL facility $ 11,400 2012 (i) PRIME and up to 0.50% or;
(ii) LIBOR (a) plus (1.00% to 1.50%)
Term Loan A 142,500 2013 (i) PRIME plus (1.00% to 1.50%) or;
(ii) LIBOR plus (2.00% to 2.50%)
Term Loan B 910,800 2014 (i) PRIME plus (1.25% to 1.50%) or;
(ii) LIBOR plus (2.25% to 2.50%)
Total $ 1,064,700
Senior notes $ 430,000 2015 9.25%
Senior subordinated notes 280,000 2017 10.50%
Total $ 710,000
Capitalized leases and other $ 1,041
Less: current portion (17,147)
Total long-term debt $ 1,758,594
(a)
London Interbank Offered Rate ("LIBOR")
F-25
Source: Sally Beauty Holding, 10-K, November 29, 2007