FINANCING ARRANGEMENTS

The Company's borrowings under existing financing arrangements consist of the following:



	December 31,
	2017			2016
Term debt:
Long-term notes	$	48,982		$	40,823
Less: current portion	(3,604		)	(3,188		)
Total long-term debt	$	45,378		$	37,635

Term Debt:

Long-Term Notes — At December 31, 2017, the outstanding principal balance on the long-term notes was $48,982 of which $3,604 is the current portion. The Company has an unsecured long-term note of $21,969 of which $1,188 is the current portion. The interest on this unsecured long-term note is variable at 1.20% above LIBOR and is fixed using an interest rate swap at 2.85% per annum. The unsecured long-term note matures in May 2023, at which time the outstanding principal balance will be $15,438. The Company had another note that was secured by the Company's former corporate aircraft. The long-term note secured by the Company's corporate aircraft was repaid in the second quarter of 2017 when the Company sold the aircraft. During the third quarter of 2017, the Company financed its new corporate aircraft with another note that is secured by this corporate aircraft with a outstanding principal balance of $27,013 of which $2,416 is the current portion. The interest on this collateralized long-term note is fixed at 2.74% per annum. The collateralized long-term note matures in July 2022, at which time the outstanding principal balance will be $15,375.

Revolving Line of Credit Facilities:

U.S. Line of Credit — The Company maintains an unsecured revolving line of credit with available principal of up to $50,000, expiring in April 2020. The line of credit bears interest at a variable rate of LIBOR plus 0.80% to 1.20% depending on the Company's financial performance. Part of this credit facility is available to the Company's foreign subsidiaries including those in India, China, Japan and South Korea based on management discretion. At December 31, 2017, there were no outstanding drawings, however there were $520 of guarantees issued against the line which reduced the total availability. At December 31, 2017, the remaining availability under this line was $49,480.

The Company is required to meet certain financial covenants associated with its U.S. line of credit and collateralized long-term note. These covenants, tested quarterly, include a debt service coverage ratio and a funded debt to earnings before interest, taxes, depreciation and amortization ("EBITDA") ratio. The debt service coverage covenant requires the Company to maintain a trailing twelve month ratio of cash flow to debt service that is greater than 1.5:1. Debt service in the calculation is decreased by our cash held in the U.S.A. in excess of $50,000 up to a maximum of $250,000. Cash flow is defined as EBITDA less unfunded capital expenditures. The funded debt to EBITDA covenant requires that the sum of all indebtedness for borrowed money on a consolidated basis be less than three times the Company's trailing twelve months EBITDA.

Euro Line of Credit — The Company maintains an unsecured revolving line of credit with a principal amount of Euro 50,000 ($59,893 at December 31, 2017), expiring in July 2020. The line of credit bears interest at various rates based upon the type of loan. This credit facility is available to the Company's foreign subsidiaries including those in Germany, Russia, China and Italy based on management discretion. At December 31, 2017, there were no drawings, however there were $798 of guarantees issued against the line which reduced the total availability. At December 31, 2017, the remaining availability under this line was $59,095.

Euro Overdraft Facilities — The Company maintains a syndicated overdraft facility with available principal of Euro 500 ($599 at December 31, 2017) with no expiration date. This facility bears interest at market rates that vary depending upon the bank within the syndicate that advances the principal outstanding. At December 31, 2017, there were no outstanding drawings and the aggregate remaining availability under this line was $599.

Other European Facilities — The Company maintains two Euro credit lines in Italy with aggregate available principal of Euro 1,500 ($1,797 as of December 31, 2017) which bear interest at market rates and expire in June and September 2018. At December 31, 2017, there were no outstanding drawings and the aggregate remaining availability under these lines was $1,797. These facilities are collateralized by a common pool of the assets of the Company's Italian subsidiary.