Debt

9 Months Ended

Sep. 30, 2011

(4) Debt

Short-term and long-term debt consisted of the following:


	September 30, 2011			December 31, 2010

SHORT-TERM DEBT
U.S. Revolver A (a)	$	31,900		$	—
Canadian Revolver (a)		—			—
Foreign		1,500			—

Total short-term debt		33,400			—

LONG-TERM DEBT
6.76% insurance company loan due in scheduled installments through 2015		42,835			42,835
U.S. Revolver B (a)		27,314			25,704
Other, primarily capital leases		305			600

Total long-term debt		70,454			69,139
Less current portion		(7,871	)		(8,012	)

Total long-term portion		62,583			61,127


TOTAL SHORT-TERM AND LONG-TERM DEBT	$	103,854		$	69,139


(a)		The Company’s amended and Restated Credit Agreement (the “2008 Senior Credit Facility”) provides a $230,000 five-year secured revolver consisting of (i) a $170,000 revolving “A” loan (the “U.S. Revolver A”), (ii) a $50,000 multicurrency revolving “B” loan (the “U.S. Revolver B“), and (iii) a Canadian dollar $9,784 revolving loan (corresponding to $10,000 in U.S. dollars as of the amendment closing date; availability expressed in U.S. dollars changes based on movement in the exchange rate between the Canadian dollar and U.S. dollar). The maturity date of the 2008 Senior Credit Facility is January 2, 2013.

Effective April 27, 2011, the Company entered into a Second Amendment to the 2008 Senior Credit Facility, dated April 21, 2011. Effective on the same date, the Company and its material domestic subsidiaries entered into an Amendment No. 3 to Note Agreement, dated April 21, 2011, with The Prudential Insurance Company of America and Prudential Retirement Insurance and Annuity Company to amend certain terms in its existing note agreement pursuant to which the Company previously issued its long-term notes so as to be substantially the same as the amended senior credit facility.

The Second Amendment to the 2008 Senior Credit Facility provides: (i) for an amendment to the calculation of the covenant relating to the percentage of consolidated total assets of the Company and its material domestic subsidiaries that must be assets of the U.S. Borrower; and (ii) that for the purposes of determining compliance with the covenants contained in the amended senior credit facility, any election by the Company to measure an item of indebtedness using fair value (as permitted by Accounting Standards Codification 825 or any similar accounting standard) shall be disregarded.

The U.S. Revolver A and the Canadian revolver are classified as short-term based on the Company’s ability and intent to repay amounts outstanding under these instruments within the next 12 months. The U.S. Revolver B is classified as long-term as the Company’s cash projections indicate that amounts outstanding (which are denominated in British pounds) under this instrument are not expected to be repaid within the next 12 months. Available revolving credit capacity is primarily used to fund working capital needs. Taking into consideration the most recent borrowing base calculation as of September 30, 2011, which reflects trade receivables, inventory, letters of credit and other outstanding secured indebtedness, available credit capacity consisted of the following:


	Outstanding				Weighted Average
	Borrowings as of		Availability as of		Interest Rate for the Nine
	September 30,		September 30,		Months Ended September
Debt type	2011		2011		30, 2011
U.S. Revolver A	$	31,900	$	86,544		1.94	%
U.S. Revolver B		27,314		22,686		1.55	%
Canadian revolver		—		9,417		3.41	%

The fair value of the Company’s fixed rate debt as of September 30, 2011, including current maturities, was estimated to be $42,032 compared to a carrying value of $42,835. The fair value of the fixed rate debt was determined using a market approach, which estimates fair value based on companies with similar credit quality and size of debt issuances. As of September 30, 2011, the estimated fair value of the Company’s debt outstanding under its revolving credit facilities is $56,935, assuming the total amount of debt outstanding at the end of the period will be outstanding until the maturity of the Company’s facility in January 2013. Although borrowings could be materially greater or less than the current amount of borrowings outstanding at the end of the period, it is not practical to estimate the amounts that may be outstanding during future periods since there is no predetermined borrowing or repayment schedule. The estimated fair value of the Company’s debt outstanding under its revolving credit facility is lower than the carrying value of $59,214 since the terms of this facility are more favorable than those that might be expected to be available in the current lending environment.

As of September 30, 2011, the Company remained in compliance with the covenants of its financing agreements, which require it to maintain certain funded debt-to-capital and working capital-to-debt ratios and a minimum adjusted consolidated net worth as defined within the agreements.