Notes Payable: |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Notes Payable [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Notes Payable | NOTES PAYABLE Our Revolving Credit Facility and debt securities contain certain restrictive financial covenants. As of December 31, 2018, we were in compliance with all of these financial covenants. We had the following short-term debt outstanding at the Consolidated Balance Sheets date (in thousands):
Revolving Credit Facility and CP Program On July 30, 2018, we amended and restated our corporate Revolving Credit Facility, maintaining total commitments of $750 million and extending the term through July 30, 2023 with two one-year extension options (subject to consent from lenders). This facility is similar to the former revolving credit facility, which includes an accordion feature that allows us, with the consent of the administrative agent, the issuing agents and each bank increasing or providing a new commitment, to increase total commitments up to $1.0 billion. Borrowings continue to be available under a base rate or various Eurodollar rate options. The interest costs associated with the letters of credit or borrowings and the commitment fee under the Revolving Credit Facility are determined based upon our Corporate credit rating from S&P, Fitch, and Moody's for our senior unsecured long-term debt. Based on our credit ratings, the margins for base rate borrowings, Eurodollar borrowings, and letters of credit were 0.125%, 1.125%, and 1.125%, respectively, at December 31, 2018. Based on our credit ratings, a 0.175% commitment fee was charged on the unused amount at December 31, 2018. Margins and the commitment fee rate decreased in August 2018 due to our upgraded credit rating from S&P. We have a $750 million, unsecured CP Program that is backstopped by the Revolving Credit Facility. Amounts outstanding under the Revolving Credit Facility and the CP Program, either individually or in the aggregate, cannot exceed $750 million. The notes issued under the CP Program may have maturities not to exceed 397 days from the date of issuance and bear interest (or are sold at par less a discount representing an interest factor) based on, among other things, the size and maturity date of the note, the frequency of the issuance and our credit ratings. Under the CP Program, any borrowings rank equally with our unsecured debt. Notes under the CP Program are not registered and are offered and issued pursuant to a registration exemption. Our net (payments) under the CP Program during 2018 were $(26) million and our notes outstanding as of December 31, 2018 were $186 million. As of December 31, 2018, the weighted average interest rate on CP Program borrowings was 2.88%. As of December 31, 2018 and December 31, 2017, we had outstanding letters of credit totaling approximately $22 million and approximately $27 million, respectively. Total accumulated deferred financing costs on the Revolving Credit Facility of $6.7 million are being amortized over its estimated useful life and were included in Interest expense on the accompanying Consolidated Statements of Income (Loss). See Note 6 above for additional details. Debt Covenants Under our Revolving Credit Facility and term loan agreements we are required to maintain a Consolidated Indebtedness to Capitalization Ratio not to exceed 0.65 to 1.00. Our Consolidated Indebtedness to Capitalization Ratio is calculated by dividing (i) Consolidated Indebtedness, which includes letters of credit and certain guarantees issued by (ii) Capital, which includes Consolidated Indebtedness plus Net Worth, which excludes noncontrolling interest in subsidiaries. Our Revolving Credit Facility and our Term Loans require compliance with the following financial covenant at the end of each quarter:
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