Credit Facilities

9 Months Ended

Sep. 30, 2012

Line of Credit Facility [Abstract]

Credit Facilities

Credit Facilities

As of September 30, 2012, we have committed credit facilities with two banks. These include a $175 million four-year credit facility which will expire on May 31, 2016 and a $75 million five-year credit facility which will expire on May 31, 2017. Borrowings under these credit facilities bear variable interest based on the London Interbank Offered Rate (“LIBOR”). As of September 30, 2012, we had no borrowings outstanding under these credit facilities with banks. The $250 million of credit available under these facilities is further reduced by $33.8 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 September 30, 2012, we were in compliance with these covenants.