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Short-term and Long-term Obligations | 9 Months Ended
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Mar. 31, 2016
Debt Disclosure [Abstract] |
Short-term and Long-term Obligations | Short-term and Long-term Obligations Short-term and long-term obligations as of March 31, 2016 and June 30, 2015 consisted of the following (in thousands):
| March 31, |  | June 30,
| 2016 |  | 2015
Line of credit: |  |  |
Bank of America | $ | 62,199 |  |  | $ | 59,699 |
CTBC Bank | 9,700 |  |  | 9,700 |
Total line of credit | 71,899 |  |  | 69,399 |
Building term loans: |  |  |
Bank of America | 1,633 |  |  | 3,733 |
CTBC Bank | 20,263 |  |  | 21,280 |
Total building term loans | 21,896 |  |  | 25,013 |
Total debt | 93,795 |  |  | 94,412 |
Current portion | (93,795 | ) |  | (93,479 | )
Long-term portion | $ | — |  |  | $ | 933 |
Activities under Revolving Lines of Credit and Term Loans Bank of America In June 2015, 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 $65,000,000 revolving line of credit facility that would have matured on November 15, 2015 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. In April 2016, the Company extended the revolving line of credit to mature on May 31, 2016, and 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 0.44% at March 31, 2016. For borrowings denominated in Taiwanese dollars, the interest rate is equal to the lender's established interest rate which is adjusted monthly. As of March 31, 2016 and June 30, 2015, the total outstanding borrowings under the Bank of America term loan were $1,633,000 and $3,733,000, respectively. The total outstanding borrowings under the Bank of America line of credit were $62,199,000 and $59,699,000 as of March 31, 2016 and June 30, 2015, respectively. The interest rates for these loans ranged from 1.00% to 1.94% per annum at March 31, 2016 and from 0.79% to 1.68% per annum at June 30, 2015, respectively. As of March 31, 2016, the unused revolving line of credit with Bank of America was $2,801,000. CTBC Bank In November 2015, the Company entered into an amendment to the existing credit agreement with CTBC Bank Co., Ltd ("CTBC Bank") that provides for (i) a 12-month NT$700,000,000 or $22,017,000 U.S. dollar equivalent 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 12-month revolving line of credit up to 80.0% of eligible accounts receivable in an aggregate amount of up to $17,000,000 with an interest rate equal to the lender's established USD interest rate plus 0.30% per annum which is adjusted monthly. The total borrowings allowed under the credit agreement are capped at NT$1,000,000,000 or $30,340,000 U.S. dollar equivalent. The total outstanding borrowings under the CTBC Bank term loan are denominated in Taiwanese dollars and were translated into U.S. dollars of $20,263,000 and $21,280,000 at March 31, 2016 and June 30, 2015, respectively. The total outstanding borrowings under the CTBC Bank revolving line of credit were $9,700,000 in U.S. dollars at March 31, 2016 and June 30, 2015. The interest rate for this loan ranged from 0.92% and 1.06% at March 31, 2016 and 0.82% and 1.16% per annum at June 30, 2015. In April 2016, the Company entered into a credit agreement with CTBC Bank Co., Ltd that provides for (i) a 12-month NT 700,000,000 or $21,620,000 U.S. dollar equivalent term loan facility 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. This term loan facility also includes a 12-month customs bond up to NT 100,000,000 or $3,089,000 U.S. dollar equivalent with an annual fee equal to 0.5% per annum, and (ii) a 12-month revolving line of credit up to 80.0% of eligible accounts receivable in an aggregate amount of up to $40,000,000 with an interest rate equal to the lender's established USD interest rate plus 0.30% per annum which is adjusted monthly. The total borrowings allowed under the credit agreement are capped at $40,000,000. The credit agreement matures on March 31, 2017. 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 March 31, 2016 and June 30, 2015, total assets of $1,137,023,000 and $1,045,408,000, respectively, collateralized the line of credit with Bank of America which represents 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 March 31, 2016 and June 30, 2015, total assets collateralizing the term loan with Bank of America were $17,181,000 and $17,354,000. As of March 31, 2016, the Company was in compliance with all financial covenants associated with the credit agreement with Bank of America. As of March 31, 2016 and June 30, 2015, the land and building located in Bade, Taiwan with a value of $26,909,000 and $27,047,000, respectively, collateralized the term loan with CTBC Bank. There are no financial covenants associated with the term loan with CTBC Bank at March 31, 2016.

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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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