3.
Credit Facilities
The Company has amended its revolving credit facility. The amended credit facility provides for
a credit line totaling $27 million for the Company's first and second quarters, and $32 million for
the third and fourth quarters. The credit facility can be used for general corporate purposes,
including working capital needs, capital expenditures, and up to $12 million of letters of credit.
There is a ninety-day period in which the Company must have no amounts outstanding (except
letters of credit) under the facility each year. The credit facility expires in fiscal 2006. At the
Company's option, interest is payable at LIBOR plus 100 basis points, prime rate, bankers'
acceptance rate plus 100 basis points, or a fixed rate. The credit facility is unsecured, and the
Company is subject to various financial covenants principally relating to its working capital, net
worth, interest coverage ratio and capital spending restrictions.
In fiscal 2002, 2001 and 2000, the Company incurred commitment fees on the credit facility
ranging from 5 basis points on the letters of credit to 20 basis points on the available revolving
credit line. The fees payable under the revised credit line range from 5 basis points on the letters
of credit to 37.5 basis points on the available line.
No amounts were outstanding under the Company's credit facilities during fiscal years 2002,
2001,and 2000 or as of February 23, 2002 or February 24, 2001 (excluding letters of credit).
The Company had outstanding letters of credit approximating $4,443,000 and $5,534,000 as of
February 23, 2002 and February 24, 2001, respectively, for the purchase of inventory in the
normal course of business.
4. Other
Prepayments and other current assets include prepaid catalog costs of $1,495,000 and $1,646,000
as of February 23, 2002 and February 24, 2001, respectively. Prepayments and other current
assets also include refundable income taxes of $4,162,000 and $31,200 as of February 23, 2002
and February 24, 2001, respectively.
Trade accounts payable and accrued expenses consist of (dollars in thousands):
Fiscal Years Ended
February 23,
2002
February 24,
2001
Trade accounts payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$
6,558
$
9,049
Salaries and compensation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2,326
2,616
Accrued refunds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1,308
1,360
Restructuring charges . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
387
1,690
Other. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
8,597
8,129
$
19,176
$
22,844
F-12
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS--(Continued)
L I L L I A N V E R N O N
