4. Line of Credit

12 Months Ended

Dec. 31, 2017

Debt Disclosure [Abstract]

Line of Credit

As of December 31, 2017 we had a $75.0 million revolving credit facility with a money center bank pursuant to which the lender is obligated to make advances until February 28, 2022. This credit facility, entered into on February 28, 2017, replaced a $40.0 million revolving credit facility with the same bank which was in place for several years prior to that date. The credit facility is secured by substantially all our inventories, equipment and accounts receivable. Interest under the credit facility is assessed at 30-day, 60-day or 90-day LIBOR, as selected by us, plus .875 percent (2.35 percent at December 31, 2017) and is payable monthly. We had no outstanding borrowings under the credit facility at December 31, 2017 or the prior credit facility at December 31, 2016. Our ability to borrow funds under the credit facility from time to time is contingent on meeting certain covenants in the loan agreement, the most restrictive of which is the ratio of total debt to earnings before interest, income tax, depreciation and amortization. At December 31, 2017, we were in compliance with all of these covenants.