FINANCING ARRANGEMENTS:

6 Months Ended

Dec. 31, 2012

FINANCING ARRANGEMENTS:

FINANCING ARRANGEMENTS:

8. FINANCING ARRANGEMENTS:

The Company’s long-term debt as of December 31, 2012 and June 30, 2012 consisted of the following:

		Interest rate percentage		Amounts outstanding
	Maturity Dates	December 31, 2012	June 30, 2012	December 31, 2012			June 30, 2012
	(fiscal year)			(Dollars in thousands)
Senior term notes (1)	2013 - 2018	6.69 - 8.50%	6.69 - 8.50%	$	93,571		$	111,429
Convertible senior notes	2015	5.00	5.00	163,738			161,134
Revolving credit facility (1)	2016	—	—	—			—
Equipment and leasehold notes payable	2015 - 2016	4.90 - 8.75	4.90 - 8.75	11,620			14,780
Other notes payable	2013	8.00	5.75 - 8.00	54			331
				268,983			287,674
Less current portion				(28,950		)	(28,937		)
Long-term portion				$	240,033		$	258,737

(1) During the three months ended December 31, 2012 the Company amended its debt agreements to remove covenants related to specified minimum net worth levels.  The Company was in compliance with all covenants and requirements of its financing arrangements as of and during the three months ended December 31, 2012.

The table below contains details related to the Company’s financing arrangements during the six months ended December 31, 2012 and 2011:

	For the Six Months Ended December 31,
Total Debt	2012			2011
	(Dollars in Thousands)
Balance at June 30,	$	287,674		$	313,411
Repayment of long-term debt and capital lease obligations	(8,905		)	(9,669		)
Amortized debt discount	1,288			1,183
Other	4			(910		)
Balance at September 30,	$	280,061		$	304,015
Repayment of long-term debt and capital lease obligations	(12,393		)	(12,321		)
Amortized debt discount	1,316			1,208
Other	(1		)	(21		)
Balance at December 31,	$	268,983		$	292,881

Private Shelf Agreement

At December 31, 2012 and June 30, 2012, the Company had $93.6 and $111.4 million, respectively, in unsecured, fixed rate, senior term notes outstanding under a Private Shelf Agreement, of which $22.1 million were classified as part of the current portion of the Company’s long-term debt at December 31, 2012 and June 30, 2012. The notes require quarterly payments, and final maturity dates range from June 2013 through December 2017.

Convertible Senior Notes

In July 2009, the Company issued $172.5 million aggregate principal amount of 5.0 percent convertible senior notes due July 2014. The notes are unsecured, senior obligations of the Company and interest is payable semi-annually in arrears on January 15 and July 15 of each year at a rate of 5.0 percent per year. At issuance, the notes were convertible, subject to certain conditions further described below, at an initial conversion rate of 64.6726 shares of the Company’s common stock per $1,000 principal amount of notes (representing an initial conversion price of approximately $15.46 per share of the Company’s common stock). As of December 31, 2012, the conversion rate was 65.2891 shares of the Company’s common stock per $1,000 principal amount of notes (representing a conversion price of approximately $15.32 per share of the Company’s common stock).

Holders may convert their notes at their option prior to April 15, 2014 if the Company’s stock price meets certain price triggers or upon the occurrence of specified corporate events as defined in the convertible senior note agreement. On or after April 15, 2014, holders may convert each of their notes at their option at any time prior to the maturity date for the notes.

The Company has the choice of net-cash settlement, settlement in its own shares or a combination thereof and concluded the conversion option is indexed to its own stock. As a result, the Company allocated $24.7 million of the $172.5 million principal amount of the convertible senior notes to equity, which resulted in a $24.7 million debt discount. The allocation was based on measuring the fair value of the convertible senior notes using a discounted cash flow analysis. The discount rate was based on an estimated credit rating for the Company. The estimated fair value of the convertible senior notes was $147.8 million, and the resulting $24.7 million debt discount is being amortized over the period the convertible senior notes are expected to be outstanding, as additional non-cash interest expense. The combined debt discount amortization and the contractual interest coupon resulted in an effective interest rate on the convertible debt of 8.9 percent.

The following table provides debt information for the convertible senior notes:

	As of December 31,
Convertible Senior Notes Due 2014	2012			2011
	(Dollars in thousands)
Principal amount on the convertible senior notes	$	172,500		$	172,500
Unamortized debt discount	(8,762		)	(13,861		)
Net carrying amount of convertible debt	$	163,738		$	158,639

The following table provides interest rate and interest expense amounts related to the convertible senior notes:

	For the Six Months Ended December 31,
Convertible Senior Notes Due 2014	2012		2011
	(Dollars in thousands)
Interest cost related to contractual interest coupon — 5.0%	$	4,313	$	4,313
Interest cost related to amortization of the discount	2,604		2,391
Total interest cost	$	6,917	$	6,704

Revolving Credit Facility

As of December 31, 2012 and June 30, 2012, the Company had no outstanding borrowings under this facility. Additionally, the Company had outstanding standby letters of credit under the facility of $26.6 and $26.1 million at December 31, 2012 and June 30, 2012, respectively, primarily related to its self-insurance program. Unused available credit under the facility at December 31, 2012 and June 30, 2012 was $373.4 and $373.9 million, respectively.