|
A summary of the
Company’s net sales and long-lived assets by geographic area were
as follows (in thousands):
Long-lived assets
consisted primarily of property and equipment, prepaid pension costs,
goodwill, trademarks and other assets.
[6]
PROPERTY AND EQUIPMENT
Property and equipment
consisted of the following (in thousands):
Under the provisions of Statement of Financial Accounting Standards No. 121, “Accounting for
the Impairment of Long-Lived Assets and for Long-Lived Assets to Be Disposed Of,” charges included in selling and administrative expense for impaired
assets of $1.1 million, $1.3 million and $0.1 million were recognized in fiscal 2000, 1999 and 1998, respectively. Fair value was based on estimated
future cash flows to be generated by retail stores, discounted at a market rate of interest.
[7]
LONG-TERM AND SHORT-TERM FINANCING ARRANGEMENTS
Long-term debt, including
capitalized lease obligations, net of unamortized discounts, consisted
of the following (in thousands):
Maturities of long-term
debt and capitalized lease obligations for 2001 through 2005 are: 2001—$
10.0 million; 2002—$ 28.6 million; 2003—$ 20.0 million; 2004—$
0.5 million, and 2005—$ 0.6 million.
The Company’s
9.5% Senior Notes are due in 2006. These Notes are redeemable at the option
of the Company, in whole or in part, at any time on or after October 15,
2001.
In November 2000,
the Company entered into a new revolving bank Credit Agreement, which
provides $165.0 million in committed working capital and letter of credit
financing. The new agreement expires November 2003. Interest on borrowings
under the Credit Agreement is at varying rates and at the Company’s
option based on one of the following: the LIBOR rate, the BankOne, N.
A. corporate base rate, or the federal funds rate. A facility fee, 0.375%
at February 3, 2001, based on the Company’s leverage ratio, is payable
on the entire amount of the facility. At February 3, 2001, the Company
had $66.5 million of short-term borrowings outstanding and approximately
$14.3 million in letters of credit outstanding under the revolving bank
Credit Agreement.
The Company’s
Canadian operations maintain uncommitted lines of credit totaling approximately
$5.3 million, with letters of credit outstanding of approximately $3.0
million as of February 3, 2001.
The Company’s
debt agreements contain various covenants that, among other things, require
the maintenance of certain financial ratios related to fixed charge coverage,
EBITDA to total indebtedness and total debt to capital, establish minimum
levels of net worth, establish limitations on indebtedness, certain types
of payments including dividends, liens and investments, and limit the
use of proceeds of asset sales. The 9.5% Senior Notes, the revolving bank
Credit Agreement, and the 7.36% unsecured Senior Notes are guaranteed
by certain wholly-owned domestic subsidiaries and the Canadian subsidiary
of the Company.
|
