Long-Term Debt and Credit Agreements

12 Months Ended

Dec. 31, 2011

Long-Term Debt and Credit Agreements [Abstract]

Long-Term Debt and Credit Agreements

Long-Term Debt and Credit Agreements

Long-term debt at December 31, 2011 and 2010 consisted of the following:

	2011		2010
Credit agreement	$	37,800	$	47,300
Senior notes		35,000		35,000
Industrial revenue bonds		1,230		1,535
		74,030		83,835
Less current portion		305		305
	$	73,725	$	83,530

In 2010, the Company entered into an amendment and restatement of its revolving credit agreement (“the Credit Agreement”) with a group of banks. Under terms of the Credit Agreement, the Company may borrow up to $180 million, reduced for letters of credit issued. As of December 31, 2011, the Company had $135.5 million available under the Credit Agreement. Interest is based on the bank’s Prime rate or Euro dollar rate plus an applicable margin that varies depending on the Company’s ratio of total debt to earnings before interest, taxes, depreciation and amortization. The average interest rate on borrowing under the Credit Agreement was 3.25 percent at December 31, 2011 and 3.55 percent at December 31, 2010. In addition, the Company pays a quarterly facility fee on the used and unused portion. The Credit Agreement expires November 19, 2015.

In December 2003, the Company issued $100 million in Senior Unsecured Notes (the Notes) consisting of $65 million of notes with an interest rate of 6.08 percent and a 7 year maturity and $35 million of notes with an interest rate of 6.81 percent and a 10 year maturity. Proceeds from the issuance of the Notes were used to pay down the term loan and revolving credit facility borrowing outstanding at that time. In December 2010, the Company paid the $65 million Senior Notes at maturity with borrowings from the Credit Agreement.

In addition, at December 31, 2011, the Company had approximately $1.2 million of industrial revenue bonds with a weighted average interest rate of 0.19 percent. In 2011, the Company repaid $0.3 million of industrial revenue bonds.

As of December 31, 2011, the Company also has $6.7 million of letters of credit issued related to insurance and other financing contracts in the ordinary course of business.

As of December 31, 2011, the Company was in compliance with all its debt covenants associated with its Credit Agreement and Senior Notes. The significant financial covenants include an interest coverage ratio, defined as earnings before interest and taxes divided by interest expense, and a leverage ratio, defined as earnings before interest, taxes, depreciation, and amortization, as adjusted, compared to total debt. The ratios as of December 31, 2011 are shown in the following table:

	Required Level	Actual Level
Interest Coverage Ratio	2.25 to 1 (minimum)		8.76
Leverage Ratio	3.25 to 1 (maximum)		1.07

Maturities of long-term debt under the loan agreements in place at December 31, 2011 are as follows: $305 in 2012; $35,375 in 2013; $275 in 2014; and $38,075 in 2015.