LONG-TERM OBLIGATIONS

6 Months Ended

Jun. 30, 2015

Long-Term Debt, Unclassified [Abstract]

LONG-TERM OBLIGATIONS

6. LONG-TERM OBLIGATIONS

Credit Facility and Other Long-Term Obligations

Credit Facility

On December 30, 2014, the Company entered into an Amended and Restated Loan Agreement with First Tennessee Bank National Association (“First Tennessee”) for a $25,000 unsecured revolving credit facility (the “Credit Facility”). On June 11, 2015, the Company entered into the First Amendment to Amended and Restated Loan Agreement with First Tennessee, pursuant to which the maturity date of the Credit Facility was renewed and extended from March 31, 2017 to March 31, 2018, and the maximum amount of the Credit Facility was increased by $5,000 from $25,000 to $30,000. The Credit Facility contains customary representations and warranties, events of default, and financial, affirmative and negative covenants for loan agreements of this kind. Covenants under the Credit Facility restrict the payment of cash dividends if the Company would be in violation of the minimum tangible net worth test or the leverage ratio test in the current loan agreement as a result of the dividends, among various other restrictions.

In the absence of a default, all borrowings under the Credit Facility bear interest at the LIBOR Rate plus 1.50% per annum. The Company will pay a non-usage fee under the current loan agreement in an annual amount between 0.15% and 0.35% of the unused amount of the Credit Facility, which fee shall be paid quarterly.

At June 30, 2015 and December 31, 2014, the Company had no outstanding borrowings under the Credit Facility.

Interest Rate Risk

Changes in interest rates affect the interest paid on indebtedness under the Credit Facility because outstanding amounts of indebtedness under the Credit Facility are subject to variable interest rates. Under the Credit Facility, the non-default rate of interest was equal to the LIBOR Market Index Rate plus 1.50% per annum (for a rate of interest of 1.69% at June 30, 2015). Because there were no amounts outstanding under the Credit Facility, a one percent change in the interest rate on our variable-rate debt would not have a material impact on our financial position, results of operations or cash flows for the three-month period ended June 30, 2015.

Other Long-Term Obligations

At June 30, 2015, the Company had approximately $1,100 in non-cancelable operating lease obligations.