Stein Mart 2012 Annual Report Download - page 48

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STEIN MART, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Dollars in tables in thousands, except per share amounts)
F-20
the Applicable Margin. The Adjusted LIBO Rate with respect to any LIBO Rate Loan is the interest rate per annum equal to the LIBO Rate
for such Interest Period multiplied by the Statutory Reserve Rate. The Adjusted LIBO Rate with respect to any Base Rate Loan is the
interest rate per annum equal to the LIBO Rate for an Interest Period commencing on the date of such calculation and ending on the date
that is thirty (30) days thereafter multiplied by the Statutory Reserve Rate. The Applicable Margin is based upon a pricing grid depending
on the Average Daily Availability.
The amount available for borrowing was $93.2 million at February 2, 2013 and is based on 90% of eligible credit card receivables and
inventories less reserves, as defined in the Credit Agreement. The amount available for borrowing represents the capped borrowing base
of $100 million reduced by outstanding letters of credit of $6.8 million. The Credit Agreement contains customary affirmative and negative
covenants, including limitations on granting of liens, certain investments, additional indebtedness, prepayments on indebtedness and
disposition of inventory. We had no direct borrowings at February 2, 2013.
6. Leases and Commitments
We lease all of our retail stores, support facilities and certain equipment under operating leases. Our store leases are generally for 10
years with options to extend the lease term for two or more 5-year periods. Annual store rent is generally comprised of a fixed minimum
amount plus a contingent amount based on a percentage of sales in excess of specified levels. Most store leases also require additional
payments covering real estate taxes, common area costs and insurance.
Rent expense is as follows:
2012 2011 2010
(Restated) (Restated)
Minimum rentals 71,260$ 72,581$ 73,627$
Contingent rentals 981 1,014 1,015
72,241$ 73,595$ 74,642$
At February 2, 2013, future contractual minimum lease payments under both operating and capital leases are:
Operating Capital Total
2013 75,119$ 2,197$ 77,316$
2014 68,788 - 68,788
2015 59,447 - 59,447
2016 47,807 - 47,807
2017 34,536 - 34,536
Thereafte
r
83,073 - 83,073
Total 368,770$ 2,197$ 370,967$
Obligations under capital leases as of February 2, 2013 are recorded in Accrued expenses and other current liabilities. Interest rates on
our capital leases are less than 0.1 percent.
See Note 2 for further information regarding the impact of correcting adjustments made to previously issued Financial Statements.