Indebtedness

9 Months Ended

Jul. 01, 2011

12 Indebtedness

Debt was comprised of the following at July 1, 2011, October 1, 2010, and July 2, 2010:


	July 1 2011		October 1 2010		July 2 2010
Term loans	$	14,440	$	15,474	$	15,583
Revolvers		7,580		7,544		15,432
Other		651		792		835
Total debt		22,671		23,810		31,850
Less current portion		2,571		1,327		633
Less Revolvers		7,580		7,544		15,432
Total long-term debt	$	12,520	$	14,939	$	15,785

During the fiscal third quarter of 2011, the Company reclassified $1,235 of long term debt to current maturities of long term debt. This debt is collateralized by a property held for sale in Ferndale, Washington. The property held for sale was reclassified from long term assets held for sale to short term assets held for sale.

Term Loans

The Company's term loans have maturity dates ranging from 15 to 25 years from the September 29, 2009 effective date of the underlying agreements. Each term loan requires monthly payments of principal and interest. Interest on $8,800 of the aggregate outstanding amount of the term loans is based on the prime rate plus 2.0%, and the remainder is based on the prime rate plus 2.75%. The prime rate was 3.25% at July 1, 2011.

Certain of the term loans covering $8,800 of the aggregate borrowings are subject to a pre-payment penalty. The penalty is currently 9% of the pre-payment amount, and the penalty will decrease by 1% annually on the anniversary date of the loan agreement.

Revolvers

On November 16, 2010, the Company and certain of its subsidiaries entered into amendments to their Revolving Credit Agreements (or "Revolvers"). The amended terms of the Revolvers, maturing in November 2014, provide for funding of up to $75,000, with the option for an additional $25,000 in maximum seasonal financing availability subject to the approval of the lenders. Borrowing availability under the Revolvers is based on certain eligible working capital assets, primarily accounts receivable and inventory of the Company and its subsidiaries. The Revolvers contain a seasonal line reduction that reduces the maximum amount of borrowings to $50,000 from mid-July to mid-November, consistent with the Company's reduced working capital needs throughout that period, and requires an annual seasonal pay down to $30,000 for 60 consecutive days. The amendments to the Revolvers reset the interest rate calculation each quarter, beginning with the quarter ended April 1, 2011, by instituting an applicable margin based on the Company's leverage ratio for the trailing twelve month period. The applicable margin ranges from 2.25% to 3.0%.

The interest rate on the Revolvers is based on LIBOR or the prime rate, at the Company's discretion, plus an applicable margin. The interest rate in effect on the Revolvers at July 1, 2011, based primarily on LIBOR plus 2.25%, was approximately 2.5%.

The Company's remaining borrowing availability under the Revolvers was approximately $43,600 at July 1, 2011.

Under the terms of the Revolvers, the Company is required to comply with certain financial and non-financial covenants. Among other restrictions, the Company is restricted in its ability to pay dividends, incur additional debt and make acquisitions or divestitures above certain amounts. The key financial covenants include a minimum fixed charge coverage ratio, limits on minimum net worth and EBITDA, a limit on capital expenditures, and, as noted above, a seasonal pay-down requirement.

Other Borrowings

The Company had no unsecured revolving credit facilities at its foreign subsidiaries as of July 1, 2011. The Company utilizes letters of credit primarily as security for the payment of future claims under its workers' compensation insurance which totaled $2,568 at July 1, 2011. The Company has no unsecured lines of credit as of July 1, 2011.

Aggregate scheduled maturities of long-term debt as of July 1, 2011, for the remainder of fiscal 2011 and subsequent fiscal years, were as follows:

Fiscal Year
2011	$	1,368
2012		728
2013		781
2014		780
2015		643
Thereafter		10,791
Total	$	15,091

Interest paid was $782 and $1,113 for the three month periods ended July 1, 2011 and July 2, 2010, respectively. Interest paid for the nine months ended July 1, 2011 and July 2, 2010 was $1,806 and $2,274, respectively.

Based on the borrowing rates currently available to the Company for debt with similar terms and maturities, the fair value of the Company's long-term debt as of July 1, 2011 and July 2, 2010 was approximately $12,520 and $15,785, respectively.

- Definition

The entire disclosure for 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.

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