DEBT

12 Months Ended

Dec. 31, 2011

DEBT

DEBT

8.DEBT

The Company entered into a credit facility with Comerica Bank (“Comerica”) consisting of a revolving line of credit, which was amended in May 2010, under which the Company may borrow up to $10.0 million of non-collateralized debt.  The revolving line of credit is effective through June 1, 2012. Interest on borrowings under the line of credit is based on Comerica’s base (prime) rate minus up to 1.5%, or varying London Interbank Offered Rates up to 180 days, plus an additional percentage of up to 1.75%, depending upon certain financial ratios maintained by the Company. The Company had no outstanding borrowings on this line of credit at December 31, 2011. Letters of credit issued on the Company’s behalf, totaling $0.3 million under this credit facility, were outstanding as of December 31, 2011 and 2010, respectively.

At December 31, 2011, the Company was in compliance with the terms of its line of credit, which contains certain financial covenants, including certain financial ratios. If any event of default shall occur for any reason, whether voluntary or involuntary, Comerica may declare all or any portion outstanding on the line of credit immediately due and payable, exercise rights and remedies available to them, including instituting legal proceedings.

The Company’s debt of $1.1 million and $0.3 million at December 31, 2011 and 2010, respectively, consisted of capital leases, collateralized by vehicles, payable over 12 months in monthly installments at various effective interest rates, with final payments ending on or before December 31, 2012.

At December 31, 2011 and 2010, the assets acquired under capital leases had a net book value of $3.6 million and $2.1 million, net of accumulated depreciation of $2.1 million and $2.3 million, respectively.

Interest expense for capital lease obligations amounted to $0.05 million, $0.01 million and $0.05 million for the years ended December 31, 2011, 2010 and 2009, respectively.