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DEBT
Maturities of debt at December 30,1983 are:
(in thousands)
1985
$ 36,081
1986
43,064
1987
50,234
1988
62,192
to 2024
809,572
$1,001,143
The company has debt of $801,607,000 as of December 30,1983, at interest rates which vary based on the
prime lending rate, the Treasury bill rate, the London
Euro-dollar interbank rate or negotiated rates based on
the lenders' cost of funds. The weighted average interest
rate on this debt was 10% in 1983.
The company's loan agreements require, among other
things, the maintenance of minimum net worth, asset-to-
debt and debt-to-equity ratios. The loan agreements also
include restrictions on cash dividends, other payments
and the pledging of certain assets. At December 30,1983,
retained earnings of $276,231,000 are unrestricted and
$670,348,000 of owned property and equipment, at net
book value, is pledged or mortgaged.
Mortgage notes of $491,999,000 bear interest at rates
ranging from 5.5% to 13.1% and mature serially through
2024. Of the total mortgage debt outstanding,
$371,512,000 is secured, generally without recourse to
the company, by specific assets with a net book value that
approximates the outstanding loan balance.
Unsecured debt at December 30,1983 consists of:
(in thousands)
Senior notes payable with interest at 10%%
and maturing 1985 to 1997 $ 29,900
Notes payable with interest at 5.2% to
12.0% and maturing 1985 to 2010 60,819
Bank and other loans with average interest
at 10.4% and maturing through 1993
(includes short-term debt of
$182,508,000) 418,425
$509,144
The company has $617,000,000 of revolving loan
commitments at December 30,1983. A commitment fee
of up to .5% is payable on the unused portion. Revolving
loan commitments, short-term loans and commercial paper
are used for interim financing. Such financing is classified
as noncurrent to the extent funds are available under
revolving loan agreements maturing beyond one year. The
above maturity table reflects the maturities of unsecured
debt based on the permanent loan repayment schedule,
the maturity schedule of revolving bank loans and management's estimation of prepayments.
Under certain bank agreements, the company maintains average compensating balances equal to a percentage (3%-5%) of the amounts available or borrowed. All
compensating balance agreements are informal and do not
legally restrict withdrawal of funds. The average compensating balance during 1983 was $12,918,000.
LEASES
Minimum future rentals under non-cancelable leases
(primarily real estate and shopping center space) are:
Capital
Operating
Operations
Fiscal Year
Leases
Leases
Held for Sale
(in thousands)
1984
$ 11,735
$ 48,533
$ 3,382
1985
11,515
45,547
3,363
1986
11,145
44,370
3,275
1987
10,820
41,906
3,184
1988
10,392
37,938
3,180
Thereafter
89,240
322,020
16,569
Total minimum lease
payments
144,847
$540,314
$32,953
Amount representing
interest
(69,526)
Present value of net
minimum lease
payments
75,321
Current portion of
capital lease
obligations
(4,853)
Long-term capital lease
obligations
$ 70,468
These future rentals have not been reduced by minimum sublease rentals of $51,786,000, payable to the company under non-cancelable subleases.
Most leases contain one or more renewal options,
generally for five or 10-year periods.
Minimum rentals under leases related to units
acquired as part of the Gino's acquisition, which the
company intends to divest under the original merger plan,
are shown separately in the table above.
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