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INDEBTEDNESS | 3 Months Ended
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Jun. 30, 2016
Debt Disclosure [Abstract] |
INDEBTEDNESS |
(6) | INDEBTEDNESS
U.S. Dollar Denominated Debt The following is a summary of debt outstanding at June 30, 2016 and March 31, 2016:
|  | June 30, |  |  | March 31, |
(In thousands, except weighted average data) |  | 2016 |  |  | 2016 |
Credit facility: |  |  |  |  |  |  |  |
Term loan agreement (A) |  | $ | 300,000 |  |  |  | 300,000 |
Revolving line of credit (B) (C) |  |  | 600,000 |  |  |  | 600,000 |
September 2013 senior unsecured notes: |  |  |  |  |  |  |  |
Aggregate debt outstanding |  | $ | 500,000 |  |  |  | 500,000 |
Weighted average remaining life in years (E) |  |  | 7.2 |  |  |  | 7.4 |
Weighted average coupon rate on notes outstanding |  |  | 4.86 | % |  |  | 4.86 | %
Fair value of debt outstanding (Level 2) |  | $ | 274,187 |  |  |  | 342,746 |
August 2011 senior unsecured notes: |  |  |  |  |  |  |  |
Aggregate debt outstanding |  | $ | 165,000 |  |  |  | 165,000 |
Weighted average remaining life in years (E) |  |  | 4.3 |  |  |  | 4.6 |
Weighted average coupon rate on notes outstanding |  |  | 4.42 | % |  |  | 4.42 | %
Fair value of debt outstanding (Level 2) |  | $ | 108,620 |  |  |  | 127,148 |
September 2010 senior unsecured notes: |  |  |  |  |  |  |  |
Aggregate debt outstanding |  | $ | 382,500 |  |  |  | 382,500 |
Weighted average remaining life in years (E) |  |  | 3.8 |  |  |  | 4.1 |
Weighted average coupon rate on notes outstanding |  |  | 4.35 | % |  |  | 4.35 | %
Fair value of debt outstanding (Level 2) |  | $ | 264,479 |  |  |  | 302,832 |
May 2015 notes (D): |  |  |  |  |  |  |  |
Amount outstanding |  | $ | 28,727 |  |  |  | 30,033 |
Fair value of debt outstanding (Level 2) |  |  | 26,811 |  |  |  | 30,062 |
March 2015 notes (D): |  |  |  |  |  |  |  |
Amount outstanding |  | $ | 27,030 |  |  |  | 27,030 |
Fair value of debt outstanding (Level 2) |  |  | 25,266 |  |  |  | 27,027 |
(A) | The fair value of the term loan agreement was $287.5 million at June 30, 2016 and approximated its carrying value at March 31, 2016.
(B) | Fair values approximate carrying values because the borrowings bear interest at variable rates.
(C) The revolver was fully utilized at June 30, 2016 and March 31, 2016, respectively.
(D) | Notes require semi-annual principal payments.
(E) Weighted average remaining life in years is based on stated maturities; however, all of the company’s indebtedness has been reclassified as current since March 31, 2016. As of June 30, 2016 the company was in compliance with its debt to capital ratios set forth in its debt facilities and note indentures; however, the company was out of compliance with the 3.0x minimum interest coverage ratio requirement contained in our Revolving Credit and Term Loan Agreement and 2013 Note Agreement. Refer to further discussion of this matter in Note (2) in this Quarterly Report on Form 10-Q. Norwegian Kroner Denominated Debt The following is a summary of the Norwegian Kroner (NOK) denominated borrowings outstanding at June 30, 2016 and March 31, 2016, and their U.S. dollar equivalents:
|  | June 30, |  |  | March 31, |
(In thousands) |  | 2016 |  |  | 2016 |
3.81% January 2014 notes (A): |  |  |  |  |  |  |  |
NOK denominated |  |  | 250,000 |  |  |  | 250,000 |
U.S. dollar equivalent |  | $ | 29,879 |  |  |  | 30,207 |
Fair value in U.S. dollar equivalent (Level 2) |  |  | 29,846 |  |  |  | 30,199 |
5.38% May 2012 notes (A): |  |  |  |  |  |  |  |
NOK denominated |  |  | 136,320 |  |  |  | 144,840 |
U.S. dollar equivalent |  | $ | 16,293 |  |  |  | 17,500 |
Fair value in U.S. dollar equivalent (Level 2) |  |  | 16,276 |  |  |  | 17,479 |
(A) | Notes require semi-annual principal payments.
Debt Costs The company capitalizes a portion of its interest costs incurred on borrowed funds used to construct vessels. The following is a summary of interest and debt costs incurred, net of interest capitalized, for the quarters ended June 30, are as follows:
|  | Quarter Ended |
|  | June 30, |
(In thousands) |  | 2016 |  |  | 2015 |
Interest and debt costs incurred, net of interest capitalized |  | $ | 16,954 |  |  |  | 13,182 |
Interest costs capitalized |  |  | 1,393 |  |  |  | 2,944 |
Total interest and debt costs |  | $ | 18,347 |  |  |  | 16,126 |
During the first quarter of fiscal 2017, the company adopted ASU 2015-03, Interest-Imputation of Interest: Simplifying the Presentation of Debt Issue Costs which requires that debt issuance costs related to a recognized debt liability are presented in the balance sheet as a deduction from the carrying amount of that debt liability, consistent with debt discounts. The recognition and measurement guidance for debt issuance costs are not affected by this guidance. Consistent with this guidance, $8.0 million and $6.8 million have been reclassified from other assets and are now presented as a reduction of debt as of June 30, 2016 and March 31, 2016, respectively.

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- Definition The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21475-112644 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02.19,20,22) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682 + Details
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