10-Q 1 txrh-20210928x10q.htm 10-Q
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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

  QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 28, 2021

OR

  TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from           to

Commission File Number 000-50972

Texas Roadhouse, Inc.

(Exact name of registrant specified in its charter)

Delaware

20-1083890

(State or other jurisdiction of

(IRS Employer

incorporation or organization)

Identification Number)

6040 Dutchmans Lane, Suite 200

Louisville, Kentucky 40205

(Address of principal executive offices) (Zip Code)

(502) 426-9984

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common Stock, par value $0.001 per share

TXRH

NASDAQ Global Select Market

Indicate by check mark whether registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.   Yes     No  .

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulations S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes     No  .

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large Accelerated Filer  

Accelerated Filer  

Non-accelerated Filer  

Smaller Reporting Company  

Emerging Growth Company  

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).   Yes    No  .

The number of shares of common stock outstanding were 69,645,006 on October 27, 2021.

TABLE OF CONTENTS

PART I. FINANCIAL INFORMATION

Item 1 — Financial Statements (Unaudited) — Texas Roadhouse, Inc. and Subsidiaries

3

Condensed Consolidated Balance Sheets — September 28, 2021 and December 29, 2020

3

Condensed Consolidated Statements of Income and Comprehensive Income — For the 13 and 39 Weeks Ended September 28, 2021 and September 29, 2020

4

Condensed Consolidated Statement of Stockholders’ Equity — For the 13 and 39 Weeks Ended September 28, 2021 and September 29, 2020

5

Condensed Consolidated Statements of Cash Flows — For the 39 Weeks Ended September 28, 2021 and September 29, 2020

7

Notes to Condensed Consolidated Financial Statements

8

Item 2 — Management’s Discussion and Analysis of Financial Condition and Results of Operations

15

Item 3 — Quantitative and Qualitative Disclosures About Market Risk

30

Item 4 — Controls and Procedures

31

PART II. OTHER INFORMATION

Item 1 — Legal Proceedings

32

Item 1A — Risk Factors

32

Item 2 — Unregistered Sales of Equity Securities and Use of Proceeds

32

Item 3 — Defaults Upon Senior Securities

32

Item 4 — Mine Safety Disclosures

33

Item 5 — Other Information

33

Item 6 — Exhibits

33

Signatures

34

2

PART I — FINANCIAL INFORMATION

ITEM 1 — FINANCIAL STATEMENTS

Texas Roadhouse, Inc. and Subsidiaries

Condensed Consolidated Balance Sheets

(in thousands, except share and per share data)

(unaudited)

    

September 28, 2021

    

December 29, 2020

 

Assets

Current assets:

Cash and cash equivalents

$

436,563

$

363,155

Receivables, net of allowance for doubtful accounts of $14 at September 28, 2021 and $11 at December 29, 2020

 

52,346

 

98,418

Inventories, net

 

27,784

 

22,364

Prepaid income taxes

 

4,793

 

4,502

Prepaid expenses and other current assets

 

16,429

 

22,212

Total current assets

 

537,915

 

510,651

Property and equipment, net of accumulated depreciation of $842,686 at September 28, 2021 and $763,700 at December 29, 2020

 

1,139,661

 

1,088,623

Operating lease right-of-use assets, net

558,452

530,625

Goodwill

 

127,001

 

127,001

Intangible assets, net of accumulated amortization of $14,911 at September 28, 2021 and $14,341 at December 29, 2020

 

1,701

 

2,271

Other assets

 

77,823

 

65,990

Total assets

$

2,442,553

$

2,325,161

Liabilities and Stockholders’ Equity

Current liabilities:

Current portion of operating lease liabilities

$

21,327

$

19,271

Current maturities of long-term debt

50,000

Accounts payable

 

80,444

 

66,977

Deferred revenue-gift cards

 

160,670

 

232,812

Accrued wages and payroll taxes

 

43,862

 

51,982

Income taxes payable

5,228

2,859

Accrued taxes and licenses

 

33,451

 

24,751

Other accrued liabilities

 

98,872

 

57,666

Total current liabilities

 

443,854

 

506,318

Operating lease liabilities, net of current portion

603,964

572,171

Long-term debt

 

190,000

 

190,000

Restricted stock and other deposits

 

8,023

 

7,481

Deferred tax liabilities, net

 

2,370

 

2,802

Other liabilities

 

113,735

 

103,338

Total liabilities

 

1,361,946

 

1,382,110

Texas Roadhouse, Inc. and subsidiaries stockholders’ equity:

Preferred stock ($0.001 par value, 1,000,000 shares authorized; no shares issued or outstanding)

 

 

Common stock ($0.001 par value, 100,000,000 shares authorized, 69,735,401 and 69,561,861 shares issued and outstanding at September 28, 2021 and December 29, 2020, respectively)

 

70

 

70

Additional paid-in-capital

 

146,898

 

145,626

Retained earnings

 

918,302

 

781,915

Accumulated other comprehensive loss

 

(96)

 

(106)

Total Texas Roadhouse, Inc. and subsidiaries stockholders’ equity

 

1,065,174

 

927,505

Noncontrolling interests

 

15,433

 

15,546

Total equity

 

1,080,607

 

943,051

Total liabilities and equity

$

2,442,553

$

2,325,161

See accompanying notes to condensed consolidated financial statements.

3

Texas Roadhouse, Inc. and Subsidiaries

Condensed Consolidated Statements of Income and Comprehensive Income

(in thousands, except per share data)

(unaudited)

13 Weeks Ended

39 Weeks Ended

    

September 28, 2021

    

September 29, 2020

    

September 28, 2021

    

September 29, 2020

 

Revenue:

Restaurant and other sales

$

862,757

$

626,429

$

2,550,124

$

1,747,145

Franchise royalties and fees

6,186

4,756

18,236

12,989

Total revenue

 

868,943

 

631,185

 

2,568,360

 

1,760,134

Costs and expenses:

Restaurant operating costs (excluding depreciation and amortization shown separately below):

Food and beverage

 

298,164

201,308

845,150

575,529

Labor

 

286,593

217,275

832,776

652,976

Rent

 

15,089

13,723

44,497

40,445

Other operating

 

127,769

102,978

386,754

296,615

Pre-opening

 

6,740

4,894

17,327

14,296

Depreciation and amortization

 

31,627

29,364

94,146

87,434

Impairment and closure, net

 

29

716

550

871

General and administrative

 

41,234

25,951

114,807

88,520

Total costs and expenses

 

807,245

 

596,209

 

2,336,007

 

1,756,686

Income from operations

 

61,698

 

34,976

 

232,353

 

3,448

Interest expense, net

 

604

1,502

3,039

2,601

Equity income (loss) from investments in unconsolidated affiliates

 

266

1

288

(597)

Income before taxes

$

61,360

$

33,475

$

229,602

$

250

Income tax expense (benefit)

 

7,144

3,072

31,031

(13,999)

Net income including noncontrolling interests

54,216

30,403

$

198,571

$

14,249

Less: Net income attributable to noncontrolling interests

 

1,610

1,173

6,335

2,543

Net income attributable to Texas Roadhouse, Inc. and subsidiaries

$

52,606

$

29,230

$

192,236

$

11,706

Other comprehensive income, net of tax:

Foreign currency translation adjustment, net of tax of $0, ($25), ($3) and ($16), respectively

74

10

47

Total comprehensive income

$

52,606

$

29,304

$

192,246

$

11,753

Net income per common share attributable to Texas Roadhouse, Inc. and subsidiaries:

Basic

$

0.75

$

0.42

$

2.76

$

0.17

Diluted

$

0.75

$

0.42

$

2.74

$

0.17

Weighted average shares outstanding:

Basic

 

69,808

69,446

69,745

69,410

Diluted

 

70,146

69,898

70,148

69,830

Cash dividends declared per share

$

0.40

$

$

0.80

$

0.36

See accompanying notes to condensed consolidated financial statements.

4

Texas Roadhouse, Inc. and Subsidiaries

Condensed Consolidated Statement of Stockholders' Equity

(in thousands, except share and per share data)

(unaudited)

For the 13 Weeks Ended September 28, 2021

    

    

    

    

    

Accumulated

    

Total Texas

    

    

 

Additional

Other

Roadhouse, Inc.

 

Par

Paid-in-

Retained

Comprehensive

and

Noncontrolling

 

Shares

Value

Capital

Earnings

Loss

Subsidiaries

Interests

Total

 

Balance, June 29, 2021

 

69,830,389

$

70

$

153,248

$

893,613

$

(96)

$

1,046,835

$

15,848

$

1,062,683

Net income

 

 

 

 

52,606

 

 

52,606

 

1,610

 

54,216

Distributions to noncontrolling interest holders

 

 

 

 

 

 

 

(2,025)

 

(2,025)

Dividends declared ($0.40 per share)

 

 

 

 

(27,917)

 

 

(27,917)

 

 

(27,917)

Shares issued under share-based compensation plans including tax effects

 

94,971

 

 

 

 

 

 

 

Indirect repurchase of shares for minimum tax withholdings

 

(28,925)

 

 

(2,647)

 

 

 

(2,647)

 

 

(2,647)

Repurchase of shares of common stock

(161,034)

(14,683)

(14,683)

(14,683)

Share-based compensation

 

 

 

10,980

 

 

 

10,980

 

 

10,980

Balance, September 28, 2021

 

69,735,401

$

70

$

146,898

$

918,302

$

(96)

$

1,065,174

$

15,433

$

1,080,607

For the 13 Weeks Ended September 29, 2020

    

    

    

    

    

Accumulated

    

Total Texas

    

    

Additional

Other

Roadhouse, Inc.

Par

Paid-in-

Retained

Comprehensive

and

Noncontrolling

Shares

Value

Capital

Earnings

Loss

Subsidiaries

Interests

Total

Balance, June 30, 2020

 

69,403,969

$

69

$

135,068

$

733,136

$

(252)

$

868,021

$

14,698

$

882,719

Net income

 

 

 

 

29,230

 

 

29,230

 

1,173

 

30,403

Other comprehensive income, net of tax

74

74

74

Distributions to noncontrolling interest holders

 

 

 

 

 

 

 

(284)

 

(284)

Shares issued under share-based compensation plans including tax effects

 

113,453

 

 

 

 

 

 

 

Indirect repurchase of shares for minimum tax withholdings

 

(34,900)

 

 

(1,989)

 

 

 

(1,989)

 

 

(1,989)

Share-based compensation

 

 

 

7,580

 

 

 

7,580

 

 

7,580

Balance, September 29, 2020

 

69,482,522

$

69

$

140,659

$

762,366

$

(178)

$

902,916

$

15,587

$

918,503

5

Texas Roadhouse, Inc. and Subsidiaries

Condensed Consolidated Statement of Stockholders' Equity

(in thousands, except share and per share data)

(unaudited)

For the 39 Weeks Ended September 28, 2021

    

    

    

    

    

Accumulated

    

Total Texas

    

    

 

Additional

Other

Roadhouse, Inc.

 

Par

Paid-in-

Retained

Comprehensive

and

Noncontrolling

 

Shares

Value

Capital

Earnings

Loss

Subsidiaries

Interests

Total

 

Balance, December 29, 2020

 

69,561,861

$

70

$

145,626

$

781,915

$

(106)

$

927,505

$

15,546

$

943,051

Net income

 

 

 

 

192,236

 

 

192,236

 

6,335

 

198,571

Other comprehensive income, net of tax

10

10

10

Distributions to noncontrolling interest holders

 

 

 

 

 

 

 

(6,448)

 

(6,448)

Dividends declared ($0.80 per share)

 

 

 

 

(55,849)

 

 

(55,849)

 

 

(55,849)

Shares issued under share-based compensation plans including tax effects

 

493,479

 

 

 

 

 

 

 

Indirect repurchase of shares for minimum tax withholdings

 

(158,905)

 

 

(14,842)

 

 

 

(14,842)

 

 

(14,842)

Repurchase of shares of common stock

(161,034)

(14,683)

(14,683)

(14,683)

Share-based compensation

 

 

 

30,797

 

 

 

30,797

 

 

30,797

Balance, September 28, 2021

 

69,735,401

$

70

$

146,898

$

918,302

$

(96)

$

1,065,174

$

15,433

$

1,080,607

For the 39 Weeks Ended September 29, 2020

    

    

    

    

    

Accumulated

    

Total Texas

    

    

Additional

Other

Roadhouse, Inc.

Par

Paid-in-

Retained

Comprehensive

and

Noncontrolling

Shares

Value

Capital

Earnings

Loss

Subsidiaries

Interests

Total

Balance, December 31, 2019

 

69,400,252

$

69

$

140,501

$

775,649

$

(225)

$

915,994

$

15,175

$

931,169

Net income

 

 

 

 

11,706

 

 

11,706

 

2,543

 

14,249

Other comprehensive income, net of tax

47

47

47

Distributions to noncontrolling interest holders

 

 

 

 

 

 

 

(2,131)

 

(2,131)

Dividends declared ($0.36 per share)

 

 

 

 

(24,989)

 

 

(24,989)

 

 

(24,989)

Shares issued under share-based compensation plans including tax effects

 

501,930

 

 

 

 

 

 

 

Indirect repurchase of shares for minimum tax withholdings

 

(167,251)

 

 

(9,291)

 

 

 

(9,291)

 

 

(9,291)

Repurchase of shares of common stock

(252,409)

(12,621)

(12,621)

(12,621)

Share-based compensation

 

 

 

22,070

 

 

 

22,070

 

 

22,070

Balance, September 29, 2020

 

69,482,522

$

69

$

140,659

$

762,366

$

(178)

$

902,916

$

15,587

$

918,503

6

Texas Roadhouse, Inc. and Subsidiaries

Condensed Consolidated Statements of Cash Flows

(in thousands)

(unaudited)

39 Weeks Ended

    

September 28, 2021

    

September 29, 2020

Cash flows from operating activities:

Net income including noncontrolling interests

$

198,571

$

14,249

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation and amortization

 

94,146

 

87,434

Deferred income taxes

 

(435)

 

(15,572)

Loss on disposition of assets

 

2,312

 

2,107

Impairment and closure costs

 

512

 

799

Equity (income) loss from investments in unconsolidated affiliates

 

(288)

 

597

Distributions of income received from investments in unconsolidated affiliates

 

729

 

205

Provision for doubtful accounts

 

3

 

9

Share-based compensation expense

 

30,797

 

22,070

Changes in operating working capital:

Receivables

 

46,395

 

67,281

Inventories

 

(5,420)

 

378

Prepaid expenses and other current assets

 

5,311

 

5,045

Other assets

 

(11,553)

 

(6,185)

Accounts payable

 

13,667

 

(771)

Deferred revenue—gift cards

 

(72,142)

 

(62,788)

Accrued wages and payroll taxes

 

(8,120)

 

(4,874)

Prepaid income taxes and income taxes payable

 

2,078

 

(837)

Accrued taxes and licenses

 

8,700

 

(2,144)

Other accrued liabilities

 

27,252

 

504

Operating lease right-of-use assets and lease liabilities

 

5,797

 

3,519

Other liabilities

 

10,397

 

35,009

Net cash provided by operating activities

 

348,709

 

146,035

Cash flows from investing activities:

Capital expenditures—property and equipment

 

(139,001)

(117,521)

Proceeds from sale of property and equipment

32

Proceeds from sale leaseback transactions

 

5,588

 

2,167

Net cash used in investing activities

 

(133,413)

 

(115,322)

Cash flows from financing activities:

(Payments on) proceeds from revolving credit facility, net

(50,000)

240,000

Debt issuance costs

(708)

(641)

Distributions to noncontrolling interest holders

 

(6,448)

(2,131)

Proceeds from (payments on) restricted stock and other deposits, net

 

642

(283)

Indirect repurchase of shares for minimum tax withholdings

 

(14,842)

(9,291)

Repurchase of shares of common stock

 

(14,683)

(12,621)

Dividends paid to shareholders

 

(55,849)

(24,989)

Net cash (used in) provided by financing activities

 

(141,888)

 

190,044

Net increase in cash and cash equivalents

 

73,408

 

220,757

Cash and cash equivalents—beginning of period

 

363,155

107,879

Cash and cash equivalents—end of period

$

436,563

$

328,636

Supplemental disclosures of cash flow information:

Interest paid, net of amounts capitalized

$

2,632

$

1,654

Income taxes paid

$

29,388

$

2,419

Capital expenditures included in current liabilities

$

28,363

$

12,164

See accompanying notes to condensed consolidated financial statements.

7

Texas Roadhouse, Inc. and Subsidiaries

Notes to Condensed Consolidated Financial Statements

(tabular amounts in thousands, except share and per share data)

(unaudited)

(1)  Basis of Presentation

The accompanying unaudited condensed consolidated financial statements include the accounts of Texas Roadhouse, Inc. ("TRI"), our wholly-owned subsidiaries and subsidiaries in which we have a controlling interest (collectively the "Company," "we," "our" and/or "us") as of September 28, 2021 and December 29, 2020 and for the 13 and 39 weeks ended September 28, 2021 and September 29, 2020.

As of September 28, 2021, we owned and operated 555 restaurants and franchised an additional 99 restaurants in 49 states and ten foreign countries. Of the 555 company restaurants that were operating at September 28, 2021, 535 were wholly-owned and 20 were majority-owned. Of the 99 franchise restaurants, 69 were domestic restaurants and 30 were international restaurants.

As of September 29, 2020, we owned and operated 526 restaurants and franchised an additional 97 restaurants in 49 states and ten foreign countries. Of the 526 company restaurants that were operating at September 29, 2020, 506 were wholly-owned and 20 were majority-owned. Of the 97 franchise restaurants, 70 were domestic restaurants and 27 were international restaurants.

As of September 28, 2021 and September 29, 2020, we owned a 5.0% to 10.0% equity interest in 24 domestic franchise restaurants. Additionally, as of September 28, 2021 and September 29, 2020, we owned a 40% equity interest in two and four non-Texas Roadhouse restaurants, respectively, as part of a joint venture agreement with a casual dining restaurant operator in China. The unconsolidated restaurants are accounted for using the equity method. Our investments in these unconsolidated affiliates are included in other assets in our unaudited condensed consolidated balance sheets, and we record our percentage share of net income earned by these unconsolidated affiliates in our unaudited condensed consolidated statements of income and comprehensive income under equity income (loss) from investments in unconsolidated affiliates. All significant intercompany balances and transactions for these unconsolidated restaurants as well as the entities whose accounts have been consolidated have been eliminated.

We have made a number of estimates and assumptions relating to the reporting of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the unaudited condensed consolidated financial statements and the reporting of revenue and expenses during the periods to prepare these unaudited condensed consolidated financial statements in conformity with U.S. generally accepted accounting principles ("GAAP"). Significant items subject to such estimates and assumptions include the carrying amount of property and equipment, goodwill, obligations related to insurance reserves, leases and leasehold improvements, legal reserves, gift card breakage and third party fees and income taxes. Actual results could differ from those estimates.

In the opinion of management, the accompanying unaudited condensed consolidated financial statements reflect all adjustments, consisting only of normal recurring adjustments, necessary to present fairly our consolidated financial position, results of operations and cash flows for the periods presented. The unaudited condensed consolidated financial statements have been prepared in accordance with GAAP, except that certain information and footnotes have been condensed or omitted pursuant to rules and regulations of the Securities and Exchange Commission (the "SEC"). Operating results for the 13 and 39 weeks ended September 28, 2021 are not necessarily indicative of the results that may be expected for the year ending December 28, 2021. The unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 29, 2020.

Our significant interim accounting policies include the recognition of income taxes using an estimated annual effective tax rate.

8

Risks and Uncertainties

The Company has been subject to risks and uncertainties as a result of the COVID-19 pandemic (the "pandemic"). These include federal, state and local restrictions on restaurants, some of which have limited capacity or seating in the dining rooms while others have allowed to-go or curbside service only. As of September 28, 2021, all of our domestic company and franchise locations were operating without restriction. As of September 29, 2020, nearly all of our domestic company and franchise restaurants were operating their dining rooms under various limited capacity restrictions.

As a result of these restrictions, we developed a hybrid operating model to accommodate our dining room restrictions together with enhanced to-go. We continue to see increased sales in our to-go program over pre-pandemic levels, even with dining rooms operating without restriction. We cannot predict how long we will continue to be impacted by the pandemic, the extent to which our dining rooms will have to close again or otherwise have limited seating, or if the increased sales in our to-go program will continue. The extent to which COVID-19 impacts our business, results of operations, or financial condition will depend on future developments which are outside of our control. This includes the efficacy and public acceptance of vaccination programs or testing mandates in curbing the spread of the virus, the introduction and spread of new variants of the virus, which may prove resistant to currently approved vaccines, and new or reinstated restrictions or regulations on our operations. In addition, significant items subject to estimates and assumptions including the carrying amount of property and equipment, goodwill, and lease related assets could be impacted.

(2) Recent Accounting Pronouncements

Income Taxes

(Accounting Standards Update 2019-12, "ASU 2019-12")

In December 2019, the Financial Accounting Standards Board ("FASB") issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes, which removed certain exceptions related to the approach for intraperiod tax allocations, the calculation of income taxes in interim periods, and the recognition of deferred taxes for investments. This guidance also simplified aspects of accounting for recognizing deferred taxes for taxable goodwill. We adopted ASU 2019-12 as of the beginning of our 2021 fiscal year. The adoption of this standard did not have a significant impact on our condensed consolidated financial statements.

Reference Rate Reform

(Accounting Standards Update 2020-04, "ASU 2020-04")

In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, which provides temporary optional expedients and exceptions to the current guidance on contract modifications and hedge accounting. These changes are intended to simplify the market transition from the London Interbank Offered Rate ("LIBOR") and other interbank offered rates to alternative reference rates. This guidance is effective upon issuance to modifications made as early as the beginning of the interim period through December 31, 2022. We are currently assessing the impact of this new standard on our condensed consolidated financial statements.

(3)   Long-term Debt

On May 4, 2021, we entered into an agreement to amend our revolving credit facility with a syndicate of commercial lenders led by JPMorgan Chase Bank, N.A. and PNC Bank, N.A. The amended revolving credit facility remains an unsecured, revolving credit agreement and has a borrowing capacity of up to $300.0 million with the option to increase by an additional $200.0 million subject to certain limitations, including approval by the syndicate of lenders. The amendment also extended the maturity date to May 1, 2026.

9

Prior to the amendment, our original revolving credit facility had a borrowing capacity of up to $200.0 million with the option to increase by an additional $200.0 million subject to certain limitations, including approval by the syndicate of lenders. On May 11, 2020, we amended the original revolving credit facility to provide for an incremental revolving credit facility of up to $82.5 million. This amount reduced the additional $200.0 million that was available under the original revolving credit facility.

As of May 4, 2021, before the amendment, we had $190.0 million outstanding on the original revolving credit facility and $50.0 million outstanding on the incremental revolving credit facility. As part of the amendment, the $190.0 million remained outstanding on the amended revolving credit facility and the $50.0 million was repaid.

The terms of the amendment require us to pay interest on outstanding borrowings at LIBOR plus a margin of 0.875% to 1.875% and pay a commitment fee of 0.125% to 0.30% per year on any unused portion of the revolving credit facility, in each case depending on our leverage ratio. The amendment also provides an Alternate Base Rate that may be substituted for LIBOR.

As of September 28, 2021, we had $190.0 million outstanding on the amended revolving credit facility and $101.8 million of availability, net of $8.2 million of outstanding letters of credit. This outstanding amount is included as long-term debt on our unaudited condensed consolidated balance sheet.

As of December 29, 2020, we had $190.0 million outstanding on the original revolving credit facility which is included as long-term debt on our unaudited condensed consolidated balance sheet. In addition, we had $