Although it is difficult in the current economic and credit environment to
predict the terms and conditions of financing that may be available in the
future, should our short-term or long-term cash requirements increase beyond our
current expectations, we believe that we would have sufficient access to credit
from financial institutions and/or financing from public and private debt and
As discussed in "Notes to Consolidated Financial Statements - Note (14)(b)
Commitments and Contingencies - Legal Proceedings and Other Matters" included in
"Part II - Item 8. - Financial Statements and Supplementary Data," we have
incurred legal fees and professional costs associated with legal proceedings and
other matters. The outcome of these legal proceedings and investigations is
inherently difficult to predict and an adverse outcome in one or more matters
could have a material adverse effect on our consolidated financial condition and
results of operations.
Based on our anticipated level of future sales and operating income, we believe
that our existing cash and cash equivalent balances and our cash generated from
operating activities will be sufficient to meet both our currently anticipated
short-term and long-term operating cash requirements.
We currently expect capital expenditures for fiscal 2014 to be approximately
May 2009, we issued $200.0 millionof our 3.0% convertible senior notes in a private offering pursuant to Rule 144A under the Securities Act of 1933, as amended. The net proceeds from this transaction were approximately $194.5 millionafter deducting the initial purchasers' discount and transaction costs. For further information, see "Notes to Consolidated Financial Statements - Note (9) 3.0% Convertible Senior Notes" included in "Part II - Item 8. - Financial Statements and Supplementary Data." 57
We have a committed
$100.0 millionsecured revolving credit facility ("Credit Facility") with a syndicate of bank lenders. The Credit Facility expires on April 30, 2014but may be extended by us to December 31, 2016, subject to certain conditions relating primarily to the repurchase, redemption or conversion of our 3.0% convertible senior notes and compliance with all other Credit Facility covenants. The Credit Facility provides for the extension of credit to us in the form of revolving loans, including letters of credit, at any time and from time to time during its term, in the aggregate principal amount at any time outstanding not to exceed $100.0 millionfor both revolving loans and letters of credit, with sub-limits of $15.0 millionfor commercial letters of credit and $35.0 millionfor standby letters of credit. Subject to certain limitations as defined, the Credit Facility may be used for acquisitions, stock repurchases, dividends, working capital and other general corporate purposes. The Credit Facility also contains financial condition covenants requiring that we: (i) not exceed a maximum ratio of consolidated total indebtedness to Consolidated Adjusted EBITDA (each as defined in the Credit Facility); (ii) not exceed a maximum ratio of consolidated senior secured indebtedness to Consolidated Adjusted EBITDA (each as defined in the Credit Facility); (iii) maintain a minimum fixed charge ratio (as defined in the Credit Facility); and (iv) maintain a minimum consolidated net worth; in each case measured on the last day of each fiscal quarter. The Credit Facility also requires that, in the event total consolidated indebtedness (as defined in the Credit Facility) is less than $200.0 million, we maintain a minimum level of Consolidated Adjusted EBITDA (as defined in the Credit Facility). See "Notes to Consolidated Financial Statements - Note (8) Credit Facility" included in "Part II - Item 8. - Financial Statements and Supplementary Data."