XML 39 R17.htm IDEA: XBRL DOCUMENT
v3.10.0.1

Debt And Capital Lease Obligations | 12 Months Ended
--- | ---
Sep. 01, 2018
Debt And Capital Lease Obligations [Abstract] |
Debt And Capital Lease Obligations | 8. DEBT AND CAPITAL LEASE OBLIGATIONS Debt at September 1, 2018 and September 2, 2017 consisted of the following: ﻿
﻿ |  |  |  |  |  |
﻿ |  | September 1, |  | September 2,
﻿ |  | 2018 |  | 2017
﻿ |  |  |  |  |  |
﻿Revolving Credit Facility |  | $ | 224,000 |  | $ | 332,000
﻿Private Placement Debt: |  |  |  |  |  |
﻿Senior notes, series A |  |  | 75,000 |  |  | 75,000
﻿Senior notes, series B |  |  | 100,000 |  |  | 100,000
﻿Senior notes |  |  | 20,000 |  |  | —
﻿Shelf Facility Agreements |  |  | 90,000 |  |  | —
﻿Capital lease and financing obligations |  |  | 27,926 |  |  | 27,829
﻿ Less: unamortized debt issuance costs |  |  | (1,593) |  |  | (1,852)
﻿Total debt |  | $ | 535,333 |  | $ | 532,977
﻿ Less: short-term debt(1) |  |  | (224,097) |  |  | (331,986)
﻿Long-term debt |  | $ | 311,236 |  | $ | 200,991
__________________________
| (1) |  | Net of unamortized debt issuance costs expected to be amortized in the next 12 months.
﻿ Credit Facility ﻿ In April 2017, the Company entered into a $600,000 credit facility (the “Credit Facility”). The Credit Facility, which matures on April 14, 2022, provides for a five-year unsecured revolving loan facility. The Credit Facility permits up to $50,000 to be used to fund letters of credit. The Credit Facility also permits the Company to request one or more incremental term loan facilities and/or increase the revolving loan commitments in an aggregate amount not to exceed $300,000. Subject to certain limitations, each such incremental term loan facility or revolving commitment increase will be on terms as agreed to by the Company, the Administrative Agent and the lenders providing such financing. ﻿ The interest rate is based on either LIBOR or a base rate, plus in either case a spread based on our leverage ratio at the end of each fiscal reporting quarter. The weighted average applicable borrowing rate for any borrowings outstanding under the Credit Facility at September 1, 2018 was 3.20% which represents LIBOR plus 1.125%. Based on the interest period the Company selects, interest may be payable every one, two, or three months. Interest is reset at the end of each interest period. The Company currently elects to have loans under the Credit Facility bear interest based on LIBOR with one-month interest periods. During fiscal 2018, the Company borrowed $242,000 and repaid $350,000 under the Credit Facility. ﻿ Private Placement Debt ﻿ In July 2016, the Company completed the issuance and sale of $75,000 aggregate principal amount of 2.65% Senior Notes, Series A, due July 28, 2023 and $100,000 aggregate principal amount of 2.90% Senior Notes, Series B, due July 28, 2026; and in June 2018, the Company completed the issuance and sale of $20,000 aggregate principal amount of 3.79% Senior Notes, due June 11, 2025 (collectively “Private Placement Debt”). Interest is payable semiannually at the fixed stated interest rates. ﻿ Shelf Facility Agreements ﻿ In January 2018, the Company entered into Note Purchase and Private Shelf Agreements with Metropolitan Life Insurance Company (“Met Life Note Purchase Agreement”) and PGIM, Inc. (“Prudential Note Purchase Agreement” and together with the Met Life Note Purchase Agreement, the “Shelf Facility Agreements”). ﻿ The Met Life Note Purchase Agreement provides for an uncommitted facility for the issuance and sale of up to an aggregate total of $250,000 of senior notes, at either fixed or floating rates. In June 2018, the Company completed the issuance and sale of $20,000 aggregate principal amount of 3.22% Series 2018A Notes, due June 11, 2020 and $20,000 aggregate principal amount of 3.42% Series 2018B Notes, due June 11, 2021 under the Met Life Note Purchase Agreement in a private placement exempt from the registration requirements of the Securities Act of 1933, as amended. Interest is payable semiannually at the fixed stated interest rates. As of September 1, 2018, the aggregate availability under the Met Life Note Purchase Agreement is $210,000. ﻿ The Prudential Note Purchase Agreement provides for an uncommitted facility for the issuance and sale of up to an aggregate total of $250,000 of senior notes, at a fixed rate. In January 2018, the Company completed the issuance and sale of $50,000 aggregate principal amount of 3.04% Senior Notes due January 12, 2023 under the Prudential Note Purchase Agreement in a private placement exempt from the registration requirements of the Securities Act of 1933, as amended. Interest is payable semiannually at the fixed stated interest rate. As of September 1, 2018, the aggregate availability under the Prudential Note Purchase Agreement is $200,000. ﻿ Each of the Credit Facility, Private Placement Debt, and Shelf Facility Agreements contains several restrictive covenants including the requirement that the Company maintain a maximum consolidated leverage ratio of total indebtedness to EBITDA (earnings before interest expense, taxes, depreciation, amortization and stock-based compensation) of no more than 3.00 to 1.00 (or, at the election of the Company after it consummates a material acquisition, a four-quarter temporary increase to 3.50 to 1.00), and a minimum consolidated interest coverage ratio of EBITDA to total interest expense of at least 3.00 to 1.00, during the terms of the Credit Facility, Private Placement Debt and Shelf Facility Agreements. ﻿ At September 1, 2018 and September 2, 2017, the Company was in compliance with the operating and financial covenants of the Credit Facility, Private Placement Debt, and Shelf Facility Agreements, respectively. ﻿ Maturities of debt, excluding capital lease and financing obligations, as of September 1, 2018 are as follows: ﻿
﻿ |  |  |
﻿ |  | Maturities of
﻿Fiscal Year |  | Debt
﻿2019 |  | $ | 224,000
﻿2020 |  |  | 20,000
﻿2021 |  |  | 20,000
﻿2022 |  |  | —
﻿2023 |  |  | 125,000
﻿Thereafter |  |  | 120,000
﻿Total |  | $ | 509,000
﻿ Capital Lease Obligations ﻿ In connection with the construction of the Company’s customer fulfillment center in Columbus, Ohio, the Finance Authority holds the title to the building and entered into a long-term lease with the Company. The lease has a 20-year term with a prepayment option without penalty between 7 and 20 years. At the end of the lease term, the building’s title is transferred to the Company for a nominal amount when the principal of and interest on the bonds have been fully paid. The lease has been classified as a capital lease in accordance with ASC Topic 840. At September 1, 2018 and September 2, 2017, the capital lease obligation was approximately $27,025. Under this arrangement, the Finance Authority has issued taxable bonds to finance the structure and site improvements of the Company’s customer fulfillment center in the amount of $27,025 outstanding at both September 1, 2018 and September 2, 2017. ﻿ From time to time, the Company enters into capital leases and financing arrangements with vendors to purchase certain IT equipment or software. The equipment or software acquired from these vendors is paid for over a specified period of time based on the terms agreed upon. During the fiscal year ended September 1, 2018, the Company entered into capital lease and financing obligations related to certain IT equipment and software totaling $1,163. The gross amount of property and equipment acquired under the capital lease obligation at September 1, 2018 was approximately $442. There is no related accumulated amortization for this capital lease as of September 1, 2018. ﻿ At September 1, 2018, approximate future minimum payments under capital leases and financing arrangements are as follows: ﻿
﻿ |  |  |
﻿Fiscal Year |  | Payments under capital leases and financing arrangements
﻿2019 |  | $ | 1,133
﻿2020 |  |  | 27,448
﻿2021 |  |  | 120
﻿2022 |  |  | 90
﻿Total minimum lease payments |  | $ | 28,791
﻿Less: amount representing interest |  |  | 865
﻿Present value of minimum lease payments |  | $ | 27,926
﻿Less: current portion |  |  | 484
﻿Long-term capital leases and financing arrangements |  | $ | 27,442

X
- References No definition available. + Details
Name: | us-gaap_DebtAndCapitalLeaseObligationsAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for debt and capital lease obligations can be reported. Information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants. Also includes descriptions and amounts of capital leasing arrangements that consist of direct financing, sales type and leveraged leases. Disclosure may include the effect on the balance sheet and the income statement resulting from a change in lease classification for leases that at inception would have been classified differently had guidance been in effect at the inception of the original lease. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 840 -URI http://asc.fasb.org/topic&trid=2208923 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -URI http://asc.fasb.org/topic&trid=2208564 + Details
Name: | us-gaap_DebtAndCapitalLeasesDisclosuresTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration