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Short-Term and Long-Term Obligations | 12 Months Ended
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Jun. 30, 2014
Debt Disclosure [Abstract] |
Short-term and Long-term Obligations | Short-term and Long-term Obligations Short-term and long-term obligations as of June 30, 2014 and 2013 consisted of the following (in thousands):
| June 30,
| 2014 |  | 2013
Line of credit: |  |  |
Bank of America | $ | 17,699 |  |  | $ | 10,899 |
Total line of credit | 17,699 |  |  | 10,899 |
Building term loans: |  |  |
Bank of America | 6,533 |  |  | 9,333 |
CTBC Bank | 22,055 |  |  | 14,939 |
Total building term loans | 28,588 |  |  | 24,272 |
Total debt | 46,287 |  |  | 35,171 |
Current portion | (42,554 | ) |  | (28,638 | )
Long-term portion | $ | 3,733 |  |  | $ | 6,533 |
Activities under Revolving Lines of Credit and Term Loans Bank of America In October 2011, the Company entered into an amendment to the existing credit agreement with Bank of America N.A. ("Bank of America") which provided for (i) a $40,000,000 revolving line of credit facility that matured on June 15, 2013 and (ii) a five-year $14,000,000 term loan facility. The term loan is secured by the three buildings located in San Jose, California and the principal and interest are payable monthly through September 30, 2016 with an interest rate at the LIBOR rate plus 1.50% per annum. The credit agreement was subsequently amended to extend the maturity date of the revolving line of credit facility to November 15, 2014. The Company is currently negotiating with Bank of America to renew the revolving line of credit. The line of credit facility provides for borrowings denominated both in U.S. dollars and in Taiwanese dollars. For borrowings denominated in U.S. dollars, the interest rate for the revolving line of credit is at the LIBOR rate plus 1.25% per annum. The LIBOR rate was 0.15% at June 30, 2014. For borrowings denominated in Taiwanese dollars, the interest rate is equal to the lender's established interest rate which is adjusted monthly. As of June 30, 2014 and 2013, the total outstanding borrowings under the Bank of America term loan was $6,533,000 and $9,333,000, respectively. The total outstanding borrowings under the Bank of America line of credit was $17,699,000 and $10,899,000 as of June 30, 2014 and 2013, respectively. The interest rates for these loans ranged from 1.19% to 1.65% per annum at June 30, 2014 and from 1.23% to 1.69% per annum at June 30, 2013, respectively. As of June 30, 2014, the unused revolving line of credit with Bank of America was $22,301,000. CTBC Bank In October 2011, the Company obtained an unsecured revolving line of credit from CTBC Bank Co., Ltd ("CTBC Bank", formerly, China Trust Bank) totaling NT$300,000,000 Taiwanese dollars or $9,898,000 U.S. dollars equivalents. In July 2012, the Company increased the credit facility to NT$450,000,000 Taiwanese dollars or $14,912,000 U.S. dollars equivalents. The term loan was secured by the land and building located in Bade, Taiwan with an interest rate equal to the lender’s established interest rate plus 0.30% which is adjusted monthly. In November 2013, the Company entered into an amendment to the existing credit agreement with CTBC Bank to increase the credit facility amount and extend the maturity date to November 30, 2014. The amendment provides for (i) a 13-month NT$700,000,000 or $23,787,000 U.S. dollar equivalents term loan secured by the land and building located in Bade, Taiwan with an interest rate equal to the lender's established NTD interest rate plus 0.25% per annum which is adjusted monthly and (ii) a 13-month unsecured term loan up to NT$100,000,000 or $3,398,000 U.S. dollar equivalents, and a 13-month revolving line of credit up to 80% of eligible accounts receivable in an aggregate amount of up to NT$500,000,000 or $16,991,000 U.S. dollar equivalents with an interest rate equal to the lender's established NTD interest rate plus 0.25% per annum or lender's established USD interest rate plus 0.30% per annum which is adjusted monthly. The total borrowings allowed under the credit agreement is capped at NT$1,000,000,000 or $33,981,000 U.S. dollar equivalents. The total outstanding borrowings under the CTBC Bank term loan was denominated in Taiwanese dollars and was translated into U.S. dollars of $22,055,000 and $14,939,000 at June 30, 2014 and 2013, respectively. There were no outstanding borrowings under the CTBC Bank revolving line of credit at June 30, 2014 and 2013, respectively. The interest rate for the loan was at 1.15% and 1.20% per annum at June 30, 2014 and 2013, respectively. At June 30, 2014, NT$340,000,000 or $11,361,000 U.S. dollar equivalents were available for future borrowing under this credit agreement. Covenant Compliance The credit agreement with Bank of America contains customary representations and warranties and customary affirmative and negative covenants applicable to the Company and its subsidiaries. The credit agreement contains certain financial covenants, including the following:
| • |  | Not to incur on a consolidated basis, a net loss before taxes and extraordinary items in any two consecutive quarterly accounting periods;
| • |  | The Company’s funded debt to EBITDA ratio (ratio of all outstanding liabilities for borrowed money and other interest-bearing liabilities, including current and long-term debt, less the non-current portion of subordinated liabilities to EBITDA) shall not be greater than 2.00;
| • |  | The Company’s unencumbered liquid assets, as defined in the agreement, held in the United States shall have an aggregate market value of not less than $30,000,000, measured as of the last day of each fiscal quarter and the last day of each fiscal year.
As of June 30, 2014 and 2013, the total assets of $751,396,000 and $586,742,000, respectively collateralized the line of credit with Bank of America and were all of the assets of the Company except for the three buildings purchased in San Jose, California in June 2010 and the land and building located in Bade, Taiwan, As of June 30, 2014 and 2013, total assets collateralizing the term loan with Bank of America were $17,584,000 and $17,813,000. As of June 30, 2014, the Company was in compliance with all financial covenants associated with the credit agreement with Bank of America. As of June 30, 2014 and 2013, the land and building located in Bade, Taiwan collateralizing the term loan with CTBC Bank was $27,345,000 and $27,702,000, respectively. There are no financial covenants associated with the term loan with China Trust Bank at June 30, 2014. Debt Maturities The following table as of June 30, 2014, summarizes future minimum principal payments on the Company’s debts excluding capital leases (in thousands):
Fiscal Years Ending June 30, |
2015 | $ | 42,554 |
2016 | 2,800 |
2017 | 933 |
2018 | — |
2019 | — |
Thereafter | — |
Total | $ | 46,287 |

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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 SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 19, 20, 22 -Article 5 Reference 3: 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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