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INDEBTEDNESS | 9 Months Ended
--- | ---
Dec. 31, 2016
Debt Disclosure [Abstract] |
INDEBTEDNESS |
(6) | INDEBTEDNESS
The following is a summary of debt outstanding at December 31, 2016 and March 31, 2016:
|  | December 31, |  |  | March 31, |
(In thousands) |  | 2016 |  |  | 2016 |
Term loan |  | $ | 300,000 |  |  |  | 300,000 |
Revolving line of credit |  |  | 600,000 |  |  |  | 600,000 |
September 2013 senior unsecured notes |  |  | 500,000 |  |  |  | 500,000 |
August 2011 senior unsecured notes |  |  | 165,000 |  |  |  | 165,000 |
September 2010 senior unsecured notes: |  |  | 382,500 |  |  |  | 382,500 |
May 2015 4.22% notes |  |  | 27,421 |  |  |  | 30,033 |
March 2015 4.21% notes |  |  | 25,802 |  |  |  | 27,030 |
January 2014 3.81% notes |  |  | 27,487 |  |  |  | 30,207 |
May 2012 5.38% notes |  |  | 14,791 |  |  |  | 17,500 |
|  | $ | 2,043,001 |  |  |  | 2,052,270 |
Less: Deferred debt issue costs |  |  | 6,941 |  |  |  | 6,754 |
Total debt |  | $ | 2,036,060 |  |  |  | 2,045,516 |
U.S. Dollar Denominated Debt The following table contains additional detail for U.S. dollar denominated borrowings outstanding at December 31, 2016 and March 31, 2016:
|  | December 31, |  |  | March 31, |
(In thousands, except weighted average data) |  | 2016 |  |  | 2016 |
Bank loan agreement: |  |  |  |  |  |  |  |
Term loan (A) |  | $ | 300,000 |  |  |  | 300,000 |
Fair value term loan outstanding (Level 2) |  |  | 165,000 |  |  |  | 300,000 |
Revolving line of credit (A) (B) |  |  | 600,000 |  |  |  | 600,000 |
Fair value revolving line of credit outstanding (Level 2) |  |  | 330,000 |  |  |  | 600,000 |
September 2013 senior unsecured notes: |  |  |  |  |  |  |  |
Aggregate debt outstanding |  | $ | 500,000 |  |  |  | 500,000 |
Weighted average remaining life in years (C) |  |  | 6.6 |  |  |  | 7.4 |
Weighted average coupon rate on notes outstanding |  |  | 4.86 | % |  |  | 4.86 | %
Fair value of debt outstanding (Level 2) |  | $ | 275,000 |  |  |  | 342,746 |
August 2011 senior unsecured notes: |  |  |  |  |  |  |  |
Aggregate debt outstanding |  | $ | 165,000 |  |  |  | 165,000 |
Weighted average remaining life in years (C) |  |  | 3.8 |  |  |  | 4.6 |
Weighted average coupon rate on notes outstanding |  |  | 4.42 | % |  |  | 4.42 | %
Fair value of debt outstanding (Level 2) |  | $ | 90,750 |  |  |  | 127,148 |
September 2010 senior unsecured notes: |  |  |  |  |  |  |  |
Aggregate debt outstanding |  | $ | 382,500 |  |  |  | 382,500 |
Weighted average remaining life in years (C) |  |  | 3.3 |  |  |  | 4.1 |
Weighted average coupon rate on notes outstanding |  |  | 4.35 | % |  |  | 4.35 | %
Fair value of debt outstanding (Level 2) |  | $ | 210,375 |  |  |  | 302,832 |
May 2015 4.22% notes (D): |  |  |  |  |  |  |  |
Amount outstanding |  | $ | 27,421 |  |  |  | 30,033 |
Fair value of debt outstanding (Level 2) |  |  | 27,409 |  |  |  | 30,062 |
March 2015 4.21% notes (D): |  |  |  |  |  |  |  |
Amount outstanding |  | $ | 25,802 |  |  |  | 27,030 |
Fair value of debt outstanding (Level 2) |  |  | 25,765 |  |  |  | 27,027 |
| (A) | The fair value of the term loan and the revolving line of credit approximated their carrying values at March 31, 2016.
| (B) | The revolver was fully utilized at December 31, 2016 and March 31, 2016, respectively.
| (C) | 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.
| (D) | Troms Offshore debt requires semi-annual principal payments and has a 12 year maturity.
As of December 31, 2016 the company was in compliance with the maximum 55% debt to capital ratio 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 its Revolving Line of Credit and Term Loan Agreement, 2013 Note Agreement and Troms Offshore Debt. Refer to further discussion of this matter in Note (2) in this Quarterly Report on Form 10-Q. Norwegian Kroner Denominated Debt The following table contains additional detail for Norwegian Kroner (NOK) denominated borrowings outstanding at December 31, 2016 and March 31, 2016, and their U.S. dollar equivalents:
|  | December 31, |  |  | March 31, |
(In thousands) |  | 2016 |  |  | 2016 |
January 2014 3.81% notes (A): |  |  |  |  |  |  |  |
NOK denominated |  |  | 237,500 |  |  |  | 250,000 |
U.S. dollar equivalent |  | $ | 27,487 |  |  |  | 30,207 |
Fair value in U.S. dollar equivalent (Level 2) |  |  | 27,442 |  |  |  | 30,199 |
May 2012 5.38% notes (A): |  |  |  |  |  |  |  |
NOK denominated |  |  | 127,800 |  |  |  | 144,840 |
U.S. dollar equivalent |  | $ | 14,791 |  |  |  | 17,500 |
Fair value in U.S. dollar equivalent (Level 2) |  |  | 14,767 |  |  |  | 17,479 |
(A) | Troms Offshore debt requires semi-annual principal payments and has a 12 year maturity.
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 and nine-month periods ended December 31, 2016 and 2015:
|  | Quarter Ended |  |  | Nine Months Ended |
|  | December 31, |  |  | December 31, |
(In thousands) |  | 2016 |  |  | 2015 |  |  | 2016 |  |  | 2015 |
Interest and debt costs incurred, net of interest capitalized |  | $ | 18,587 |  |  |  | 13,312 |  |  |  | 54,018 |  |  |  | 39,741 |
Interest costs capitalized |  |  | 1,118 |  |  |  | 2,513 |  |  |  | 3,612 |  |  |  | 8,280 |
Total interest and debt costs |  | $ | 19,705 |  |  |  | 15,825 |  |  |  | 57,630 |  |  |  | 48,021 |
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, $6.9 million and $6.8 million have been reclassified from other assets and are now presented as a reduction of debt as of December 31, 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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