Debt Obligations

3 Months Ended

Mar. 31, 2013

9. Debt Obligations

Debt obligations consisted of the following (in thousands):

	March 31, 2013		December 31, 2012
Credit Agreement, revolving line-of-credit	$	—	$	—
China Credit Facility, 5.9% at March 31, 2013	$	399	$	397

The Company’s Credit Agreement, which matures October 26, 2014, provides revolving credit up to $4 million and €3 million. At March 31, 2013, approximately $7,850,000 ($4,000,000 and € 3,000,000) was available under the Credit Agreement.

The Credit Agreement contains certain financial covenants related to maximum leverage, minimum fixed charge coverage and minimum tangible net worth of the Company. The Company was in compliance with all covenants at March 31, 2013.

Approximately $700,000 (€ 300,000 and 2,100,000 Swedish Krona (“SEK”)) was available under bank overdraft facilities in Europe.

The Company also has a Credit Line Facility in China providing credit of approximately $700,000 (Chinese Renminbi (“RMB”) 4,500,000). This facility will be used for working capital needs at the Company’s China operations, and will mature in October 2013. At March 31, 2013, there was approximately $300,000 (RMB 2,000,000) available under the facility.

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

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