LONG-TERM DEBT:

Credit Agreement

In anticipation of its acquisition of Freightliner, the Company entered into the Credit Agreement on March 20, 2015. The credit facilities under the Credit Agreement are comprised of a $1,782.0 million United States term loan, an A$324.6 million (or $252.5 million at the exchange rate on March 20, 2015) Australian term loan, a £101.7 million (or $152.2 million at the exchange rate on March 20, 2015) U.K. term loan and a $625.0 million revolving credit facility. The revolving credit facility includes borrowing capacity for letters of credit and swingline loans. In connection with entering into the Credit Agreement, the Company wrote-off $2.0 million of unamortized deferred financing fees and deferred $5.8 million of new fees. The maturity date of each of the Company's credit facilities under the Credit Agreement is March 31, 2020.

On January 1, 2016, the Company adopted the Financial Accounting Standards Board's (FASB) Accounting Standards Update (ASU) 2015-03, Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs, which requires debt issuance costs to be recorded as a direct reduction of the debt liability on the balance sheet rather than as an asset. The Company applied this guidance to all of its outstanding debt issuance costs retrospectively to all periods presented. The December 31, 2015 consolidated balance sheet and related disclosures were adjusted to reflect the reclassification of $23.5 million of debt issuance costs from other assets to a reduction in current portion of long-term debt of $6.0 million and a reduction in long-term debt, less current portion, of $17.5 million. There was no other impact on the consolidated financial statements from the adoption of this guidance.

During the three months ended March 31, 2016, the Company made prepayments on its United States term loan of $35.0 million and Australian term loan of A$13.0 million (or $9.6 million at the exchange rates on the dates the payments were made). As of March 31, 2016, the Company had the following outstanding term loans (amounts in thousands, except percentages):



	Local Currency		United States Dollar Equivalent		Interest Rate
United States dollar	$	1,737,000	$	1,737,000	2.43	%
Australian dollar	A$	276,627	$	212,228	4.14	%
British pound	£	101,681	$	146,350	2.51	%

The Company's availability to draw from the unused borrowing capacity is subject to covenant limitations. As of March 31, 2016, the Company had the following unused borrowing capacity under its revolving credit facility (amounts in thousands):



Composition	March 31, 2016
Total available borrowing capacity	$	625,000
Outstanding revolving loans	$	57,937
Outstanding letter of credit guarantees	$	5,123
Unused borrowing capacity	$	561,940

As of March 31, 2016, the Company had the following outstanding revolving loans (amounts in thousands, except percentages):



	Local Currency		United States Dollar Equivalent		Interest Rate
British pound (swingline loan)	£	1,400	$	2,015	2.48	%
British pound	£	18,000	$	25,907	2.51	%
Canadian dollar	C$	23,000	$	17,724	2.88	%
Euro	€	10,800	$	12,292	2.00	%

As of March 31, 2016, the Company was in compliance with the covenants under the Credit Agreement.