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Credit Agreement
6 Months Ended
Jun. 30, 2013
Credit Agreement  
Credit Agreement

(7)                     Credit Agreement

 

In June 2013, the Company amended the Amended and Restated Credit Agreement to permit additional borrowings in China of $12,500 and revised certain financial covenants including increasing the maximum amount permitted to be spent on the headquarters building from $75,000 to $80,000.

 

At June 30, 2013, the Company had $26,000 of outstanding borrowings under the Amended and Restated Credit Agreement and outstanding letters of credit of $189.  The weighted average interest rate of the outstanding borrowings was 3.75%.  As a result, the unused balance under the Amended and Restated Credit Agreement was $373,811 at June 30, 2013.  After applying the asset coverage ratio the amount available to borrow at June 30, 2013 was $220,795.  Subsequent to June 30, 2013, the Company borrowed an additional $156,000 resulting in a total outstanding balance of $182,000 under the Amended and Restated Credit Agreement through August 9, 2013.

 

Subsequent to June 30, 2013, Deckers (Beijing) Trading Co., LTD, a fully owned subsidiary, entered into a new credit facility in China (China Credit Facility) that provides for an uncommitted revolving line of credit of up to RMB 60,000, or approximately $10 million, in the third and fourth quarters and RMB 20,000, or approximately $3.3 million, in the first and second quarters.  Interest is based on the People’s Bank of China rate.  The China Credit Facility is on demand and subject to annual review and renewal.  The obligations under the China Credit Agreement are guaranteed by the Company for 110% of the facility amount in USD.