Short-term Debt and Credit Lines

12 Months Ended

Dec. 31, 2012

Debt Disclosure [Abstract]

Short-term Debt and Credit Lines

Short-term Debt and Credit Lines

Short-term debt at December 31, 2012 and 2011 consisted of:

	2012		2011
	(In thousands)
Notes payable to banks	$	3,300	$	1,790
Commercial paper	63,430		—
Total short-term debt	$	66,730	$	1,790

Included in notes payable to banks was $3.3 million outstanding in 2012 under a 4.0 million Euro-base revolving loan facility (U.S. dollar equivalent of $5.3 million at December 31, 2012) that does not expire, and which bore interest at 1.56%. In 2011, included in notes payable to banks was $1.6 million outstanding under a 4.0 million Euro-based revolving loan facility (U.S. dollar equivalent of $5.2 million at December 31, 2011) which bore interest at 2.52%.

On May 23, 2012, the Company signed a new credit agreement which increased its principal line of credit (increasing it from $90.0 million to $125.0 million) for a three year period. The line will be permanently reduced by $16.7 million annually beginning in 2013. The line was increased to meet short-term cash needs, if any, that may arise as the result of funding the acquisition of Racine Federated with cash, as well as any cash needs resulting from the $30.0 million stock repurchase program that began in the first quarter of 2012 and ended in the second quarter of 2012. The issuance of commercial paper may comprise a maximum of $70.0 million of the line of credit. Borrowings of commercial paper bore interest at 1.35% in 2012. While the facility is unsecured, there are a number of financial covenants in effect for the period with which the Company is in compliance. Under this agreement at December 31, 2012, the Company has $61.6 million available of the $67.4 million total available short-term credit lines.