(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.