1.
Summary of Significant Accounting Policies, continued
Stock Options
The Company has elected to follow Accounting Principles Board Opinion
(APB) No. 25, “Accounting for Stock Issued to Employees,”
and related Interpretations in accounting for its employee stock options
and have adopted the pro forma disclosure requirements under SFAS No.
123 “Accounting for Stock-Based Compensation.” Under APB No.
25, because the exercise price of the Company’s employee stock
options is equal to or greater than the market price of the underlying
stock on the date of grant, no compensation expense is recognized.
Shipping
and Handling Costs
Costs incurred related to shipping and handling are included in cost
of goods sold in the Company’s consolidated statements of income.
Net
Income Per Common Share
Net income per common share is calculated using the weighted-average
number of common
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shares
and, in the case of diluted net income per share, common equivalent shares,
to the extent dilutive, outstanding during the periods.
Dilutive
securities, consisting of options (see Note 6), included in the calculation
of diluted weighted average common shares were 782,000 shares in fiscal
2001, 403,000 shares in fiscal 2000 and 513,000 shares in fiscal 1999.
2.
Long-Term Debt
On July 16, 2001, the Company secured a new five-year $300 million revolving
credit facility to replace the Company’s previous $190 million facility.
The revolver includes a $100 million dual currency availability in Euros
or U.S. dollars to finance the Company’s international business in
Italy. The credit facility matures on October 2, 2006. Available borrowings
under the credit facility were $76,707,000 at September 30, 2001.
The
principal maturity terms of the new $300 million, long-term revolving
credit facility are as follows:
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