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FINANCING ARRANGEMENTS | 12 Months Ended
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Jun. 30, 2014
Debt Disclosure [Abstract] |
FINANCING ARRANGEMENTS | FINANCING ARRANGEMENTS The Company's long-term debt consists of the following:
|  |  |  | Interest rate % |  |  |  |
|  |  |  | Fiscal Years |  | June 30,
|  | Maturity Dates |  | 2014 |  | 2013 |  | 2014 |  | 2013
|  | (fiscal year) |  |  |  |  |  | (Dollars in thousands)
Convertible senior notes(1)(2) |  | 2015 |  | 5.00% |  | 5.00% |  | $ | 172,246 |  |  | $ | 166,454 |
Senior term notes |  | 2018 |  | 5.75 |  | — |  | 120,000 |  |  | — |
Revolving credit facility |  | 2018 |  | — |  | — |  | — |  |  | — |
Equipment and leasehold notes payable |  | 2015 - 2016 |  | 4.90 - 8.75 |  | 4.90 - 8.75 |  | 1,257 |  |  | 8,316 |
|  |  |  |  |  |  |  | 293,503 |  |  | 174,770 |
Less current portion (1) |  |  |  |  |  |  |  | (173,501 | ) |  | (173,515 | )
Long-term portion |  |  |  |  |  |  |  | $ | 120,002 |  |  | $ | 1,255 |
_______________________________________________________________________________
(1) | As of June 30, 2013, the Company included the convertible senior notes within long-term debt, current portion on the Consolidated Balance Sheet as the holders of the senior convertible notes had the option to convert at any time after April 15, 2014.
(2) | In July 2014, the Company settled the convertible senior notes with $172.5 million in cash.
The debt agreements contain covenants, including limitations on incurrence of debt, granting of liens, investments, merger or consolidation, certain restricted payments and transactions with affiliates. In addition, the Company must adhere to specified fixed charge coverage and leverage ratios. The Company was in compliance with all covenants and other requirements of our financing arrangements as of June 30, 2014. Aggregate maturities of long-term debt, including associated capital lease obligations of $1.3 million at June 30, 2014, are as follows:
Fiscal year | (Dollars in thousands)
2015 | $ | 173,501 |
2016 | 2 |
2017 | — |
2018 | 120,000 |
2019 | — |
Thereafter | — |
| $ | 293,503 |
Convertible Senior Notes In July 2009, the Company issued $172.5 million aggregate principal amount of 5.0% convertible senior notes due July 2014. The notes were unsecured, senior obligations of the Company and interest was payable semi-annually in arrears on January 15 and July 15 of each year at a rate of 5.0% per year. As of June 30, 2014, the notes were convertible at a conversion rate of 65.6019 shares of the Company's common stock per $1,000 principal amount of notes, representing a conversion price of approximately $15.24 per share of the Company's common stock. At the time of issuance, the Company had the choice of net-cash settlement, settlement in its own shares or a combination thereof and concluded the conversion option was indexed to its own stock. As a result, the Company allocated $24.7 million of the $172.5 million principal amount of the convertible senior notes to equity, which resulted in a $24.7 million debt discount. The $24.7 million debt discount was amortized over the period the convertible senior notes were expected to be outstanding, which was five years, as additional non-cash interest expense. The combined debt discount amortization and the contractual interest coupon resulted in an effective interest rate on the convertible debt of 8.9%. The following table provides equity and debt information for the convertible senior notes:
|  | June 30,
|  | 2014 |  | 2013
|  | (Dollars in thousands)
Principal amount on the convertible senior notes |  | $ | 172,500 |  |  | $ | 172,500 |
Unamortized debt discount |  | (254 | ) |  | (6,046 | )
Net carrying amount of convertible debt |  | $ | 172,246 |  |  | $ | 166,454 |
The following table provides interest rate and interest expense amounts related to the convertible senior notes:
|  | Fiscal Years
|  | 2014 |  | 2013
|  | (Dollars in thousands)
Interest cost related to contractual interest coupon—5.0% |  | $ | 8,625 |  |  | $ | 8,625 |
Interest cost related to amortization of the discount |  | 5,792 |  |  | 5,320 |
Total interest cost |  | $ | 14,417 |  |  | $ | 13,945 |
Senior Term Notes In November 2013, the Company issued $120.0 million aggregate principal amount of 5.75% senior unsecured notes due December 2017 (Senior Term Notes). Net proceeds from the issuance of the Senior Term Notes were $118.1 million. Interest on the Senior Term Notes is payable semi-annually in arrears on June 1 and December 1 of each year, beginning on June 1, 2014. The Senior Term Notes rank equally with the Company's existing senior unsecured debt. The Senior Term Notes are unsecured and not guaranteed by any of the Company's subsidiaries or any third party. The Senior Term Notes contain maintenance covenants, including limitations on incurrence of debt, granting of liens, investments, merger or consolidation, certain restricted payments and transactions with affiliates, none of which are more restrictive than those under the Company’s revolving credit facility. Revolving Credit Facility The Company has a $400.0 million unsecured revolving credit facility agreement, that expires in June 2018. The revolving credit facility has rates tied to a LIBOR credit spread and a quarterly facility fee on the average daily amount of the facility (whether used or unused). Both the LIBOR credit spread and the facility fee are based on the Company's debt to EBITDA ratio at the end of each fiscal quarter. In addition, the Company may request an increase in revolving credit commitments under the facility of up to $200.0 million under certain circumstances. Events of default under the credit agreement include change of control of the Company and the Company's default with respect to other debt exceeding $10.0 million. As of June 30, 2014 and 2013, the Company had no outstanding borrowings under this revolving credit facility. Additionally, the Company had outstanding standby letters of credit under the revolving credit facility of $2.2 million at June 30, 2014 and 2013, respectively, primarily related to its self-insurance program. Unused available credit under the facility at June 30, 2014 and 2013 was $397.8 million, respectively. Equipment and Leasehold Notes Payable The equipment and leasehold notes payable are primarily comprised of capital lease obligations. In September 2011, the Company entered into an agreement to refinance existing capital leases to a three year term with a contract rate of 4.9%. As of June 30, 2014 the capital lease balance was $1.3 million and will be amortized at the historical rate of 9.2%. There was no gain or loss recorded on the refinance. The Company entered into the refinancing to reduce cash interest payments. Private Shelf Agreement During fiscal year 2013, the Company prepaid $89.3 million of unsecured, fixed rate, senior term notes outstanding under a private shelf agreement. As a result of the prepayment, the Company incurred a make-whole payment of $10.6 million that was recorded in interest expense within the Consolidated Statement of Operations.

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- 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. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21475-112644 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 19, 20, 22 -Article 5 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02.19,20,22) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682 + Details
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