Notes Payable And Long-Term Debt

12 Months Ended

Dec. 31, 2011

Notes Payable And Long-Term Debt [Abstract]

Notes Payable And Long-Term Debt

Note 4—Notes payable and long-term debt:

	December 31,
	2010		2011
	(In thousands)
Wells Fargo revolving credit facility	$	27,740	$	33,630
Other		941		984
Total debt		28,681		34,614
Less current maturities		27,744		33,631
Total long-term debt	$	937	$	983

Our revolving credit facility with Wells Fargo, as amended, provides for borrowings up to $70 million and matures in August 2015. Outstanding borrowings bear interest at prime plus a margin ranging from 0.25% to 0.5%, for prime-based borrowings, or LIBOR plus a margin ranging from 2.00% to 2.25%, for LIBOR-based borrowings (the weighted average interest rate was 2.8% at December 31, 2011).

The amount of available borrowings under our revolving credit facility is based on formula-determined amounts of trade receivables and inventories, less the amount of outstanding letters of credit. At December 31, 2011, letters of credit for $5.0 million were outstanding and excess availability under the Wells Fargo Facility was $30.9 million. In the event our excess availability falls below $10.0 million the facility agreement imposes certain limitations on our ability to pay dividends or repurchase our common stock and requires us to maintain a minimum fixed charge coverage ratio, defined in the agreement as earnings before interest, taxes, depreciation, amortization, restructuring costs, pension and OPEB expense or credits, less OPEB payments, divided by the sum of interest expense, tax payments, principal payments on certain debt and certain capital expenditures, of 1.0. As of December 31, 2011 our fixed charge coverage ratio was 1.5.

The Wells Fargo Facility is collateralized by substantially all of our operating assets. In the event our financial covenants were to become applicable, failure to comply with the covenants could result in the acceleration of the outstanding balance under the facility prior to its stated maturity date. Additionally, Wells Fargo can restrict our ability to incur additional secured indebtedness and can declare a default under the credit facility in the event of, among other things, a material adverse change in our business.

The Wells Fargo Facility requires our daily net cash receipts be used to reduce the outstanding borrowings, which results in us maintaining zero cash balances so long as there is an outstanding balance under this facility. Accordingly, any outstanding balances under the Wells Fargo Facility are always classified as a current liability, regardless of the maturity date of the facility. In the aggregate future maturities of debt table below we have presented the payment of the revolving credit facility balance as of December 31, 2011, as being due during 2012 as opposed to its maturity date in 2015.

The aggregate future maturities of debt at December 31, 2011 are shown in the following table.

Year ending December 31,	Amount
	(In thousands)
2012	$	33,631
2014		1,100
Total	$	34,731