NOTE 9 – Debt

Long-term debt was comprised of the following:


	As of
*($ in thousands)*	September 28, 2014			December 31, 2013
Revolving credit facility due in 2017	$	80,300		$	75,000
Weighted average interest rate		1.5	%		1.9	%
Amount available	$	117,235		$	122,400
Total credit facility	$	200,000		$	200,000
Standby letters of credit	$	2,465		$	2,600
Commitment fee percentage per annum		0.25			0.30

The revolving credit facility requires, among other things, that CTS comply with a maximum total leverage ratio and a minimum fixed charge coverage ratio. Failure of CTS to comply with these covenants could reduce the borrowing availability under the revolving credit facility. CTS was in compliance with all debt covenants at September 28, 2014.

CTS uses interest rate swaps to convert the line of credit’s variable rate of interest into a fixed rate. In the second quarter of 2012, CTS entered into four separate interest rate swap agreements to fix interest rates on $50 million of long-term debt for the periods January 2013 to January 2017. In the third quarter of 2012, CTS entered into four separate interest rate swap agreements to fix interest rates on $25 million of long-term debt for the periods January 2013 to January 2017. The difference to be paid or received under the terms of the swap agreements will be recognized as an adjustment to interest expense for the related line of credit when settled.

These swaps are treated as cash flow hedges and consequently, the changes in fair value were recorded in Other Comprehensive Income. Interest rate swaps activity recorded in Other Comprehensive Income before tax includes the following:


	Three Months Ended					Nine Months Ended
(*$ in thousands)*	September 28, 2014		September 29, 2013			September 28, 2014			September 29, 2013
Unrealized gain (loss)	$	124	$	(428	)	$	(288	)	$	373
Realized loss reclassified to interest expense	$	123	$	81		$	363		$	236

Interest rate swaps included on the balance sheets are comprised of the following:


	As of
*($ in thousands)*	September 28, 2014		December 31, 2013
Accrued liabilities	$	583	$	392
Other long-term obligations	$	340	$	604