DEBT

Debt consisted of the following:



(In millions)	June 30, 2012			December 31, 2011
Prudential Agreement - 5.79 percent	$	150.0		$	150.0
Capital leases	1.1			0.3
Subsidiary debt	20.9			13.7
	172.0			164.0
Less current maturities	(21.2		)	(14.0		)
Long-term debt	$	150.8		$	150.0

During the first quarter, the Company assumed $4.1 million of debt with the PPH acquisition. PPH has a short-term line of credit which expires in September 2012. Maximum borrowings available on the line of credit are $8.0 million. As of June 30, 2012, the outstanding balance on the line of credit was approximately $4.2 million. The line of credit is secured by all assets of PPH with an interest rate of the one month London Interbank Offered Rate ("LIBOR") plus 2.0 percent. PPH also has a term loan of $0.1 million with an interest rate of 6.97 percent payable in monthly installments. The debt at second quarter end was included in the "Subsidiary debt" line of the above table.

During the second quarter, the Company's prior year acquisition, Impo, incurred additional borrowings on previously available credit. As of June 30, 2012, Impo had short-term debt outstanding of approximately $16.5 million. The debt at second quarter end was included in the “Subsidiary debt” line of the above table.

The total estimated fair value of debt was $187.7 million and $179.2 million at June 30, 2012 and December 31, 2011, respectively. The fair value assumed floating rate debt was valued at par. In the absence of quoted prices in active markets considerable judgment is required in developing estimates of fair value. Estimates are not necessarily indicative of the amounts the Company could realize in a current market transaction. In determining the estimated fair value of its long-term debt, the Company uses various inputs including estimated borrowing rates currently available to the Company that reflect debt with similar terms, conditions, and remaining maturities as well as the current credit quality of the Company. Accordingly, the fair value of debt is classified as a Level 2 within the valuation hierarchy.

The following debt payments are expected to be paid in accordance with the following schedule:



(In millions)	Total		Year 1		Year 2		Year 3		Year 4		Year 5		More than 5 years
Debt	$	170.9	$	20.9	$	—	$	—	$	30.0	$	30.0	$	90.0
Capital leases	1.1		0.3		0.2		0.2		0.2		0.2		—
	$	172.0	$	21.2	$	0.2	$	0.2	$	30.2	$	30.2	$	90.0