Credit Facilities

6 Months Ended

Jun. 30, 2012

Line of Credit Facility [Abstract]

Credit Facilities

Credit Facilities

On June 1, 2012, we entered into a new credit agreement for a $175 million four-year credit facility which will expire on May 31, 2016 and a credit agreement for a new $75 million five-year credit facility which will expire on May 31, 2017. The new credit facilities replaced our prior two credit facilities. Borrowings under these credit facilities bear variable interest based on the London Interbank Offered Rate (“LIBOR”). As of June 30, 2012, we had no borrowings outstanding under these credit facilities with banks. In July 2012, we borrowed $20 million. The $250 million of credit available under these facilities is further reduced by $35.9 million in stand-by letters of credit under which we are obligated. Each of the debt agreements includes, among other things, two financial covenants requiring us (i) not to exceed a maximum ratio of total debt to total capitalization and (ii) not to exceed a maximum ratio of total funded debt to earnings before interest, income taxes, depreciation and amortization (as such terms are defined in each credit facility). At June 30, 2012, we were in compliance with these covenants.