(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.

(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.