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Lines of Credit and Financing Arrangements | 3 Months Ended
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Mar. 31, 2017
Debt Disclosure [Abstract] |
Lines of Credit and Financing Arrangements | Lines of Credit and Financing Arrangements: The following table summarizes our outstanding debt obligations and their classification in the accompanying Consolidated Balance Sheets (in millions):
| As of March 31, 2017 |  | As of December 31, 2016
Short-Term Debt: |  |  |
Asset Securitization Program | $ | 200.0 |  |  | $ | 50.0 |
Foreign obligations | 1.6 |  |  | 2.4 |
Total short-term debt | $ | 201.6 |  |  | $ | 52.4 |
Current maturities of long-term debt: |  |  |
Capital lease obligations | $ | 0.7 |  |  | $ | 0.8 |
Domestic credit facility | 7.5 |  |  | — |
Senior unsecured notes | 200.0 |  |  | 200.0 |
Debt issuance costs | (0.6 | ) |  | (0.7 | )
Total current maturities of long-term debt | $ | 207.6 |  |  | $ | 200.1 |
Long-Term Debt: |  |  |
Capital lease obligations | $ | 14.9 |  |  | $ | 15.0 |
Domestic credit facility | 334.0 |  |  | 256.0 |
Senior unsecured notes | 350.0 |  |  | 350.0 |
Debt issuance costs | (5.0 | ) |  | (5.3 | )
Total long-term debt | $ | 693.9 |  |  | $ | 615.7 |
Total debt | $ | 1,103.1 |  |  | $ | 868.2 |
Short-Term Debt Foreign Obligations Through several of our foreign subsidiaries, we have facilities available to assist in financing seasonal borrowing needs for our foreign locations. We had $1.6 million and $2.4 million of foreign obligations as of March 31, 2017 and December 31, 2016, respectively, that were primarily borrowings under non-committed facilities. Proceeds on these facilities were $0.3 million and $1.2 million during the three months ended March 31, 2017 and 2016, respectively. Repayments on the facilities were $1.1 million and $1.6 million during the three months ended March 31, 2017 and 2016, respectively. Asset Securitization Program Under the Asset Securitization Program (“ASP”), we are eligible to sell beneficial interests in a portion of our trade accounts receivable to a financial institution for cash. The ASP contains a provision whereby we retain the right to repurchase all of the outstanding beneficial interests transferred. Our continued involvement with the transferred assets includes servicing, collection and administration of the transferred beneficial interests. The accounts receivable securitized under the ASP are high-quality domestic customer accounts that have not aged significantly. The receivables represented by the retained interest that we service are exposed to the risk of loss for any uncollectible amounts in the pool of receivables sold under the ASP. The fair values assigned to the retained and transferred interests are based on the sold accounts receivable carrying value given the short term to maturity and low credit risk. The sale of the beneficial interests in our trade accounts receivable are reflected as secured borrowings in the accompanying Consolidated Balance Sheets and proceeds received are included in Cash flows from financing activities in the accompanying Consolidated Statements of Cash Flows. The ASP provides for a maximum securitization range from $200.0 million to $325.0 million, depending on the period. The maximum capacity under the ASP is the lesser of the maximum securitization amount or 100% of the net pool balance less allowances, as defined by the ASP. Eligibility for securitization is limited based on the amount and quality of the qualifying accounts receivable and is calculated monthly. The eligible amounts available and beneficial interests sold were as follows (in millions):
| As of March 31, 2017 |  | As of December 31, 2016
Eligible amount available under the ASP on qualified accounts receivable | $ | 200.0 |  |  | $ | 250.0 |
Beneficial interest sold | 200.0 |  |  | 50.0 |
Remaining amount available | $ | — |  |  | $ | 200.0 |
We pay certain discount fees to use the ASP and to have the facility available to us. These fees relate to both the used and unused portions of the securitization. The used fee is based on the beneficial interest sold and calculated on floating commercial paper rates determined by the purchaser of the beneficial interest, plus a program fee of 0.65%. The average rates for March 31, 2017 and December 31, 2016 were 1.70% and 1.66%, respectively. The unused fee is based on 102% of the maximum available amount less the beneficial interest sold and is calculated at a 0.33% fixed rate throughout the term of the agreement. In addition, a 0.05% unused fee is charged on incremental available amounts above $200 million during certain months of the year. We recorded these fees in Interest expense, net in the accompanying Consolidated Statements of Operations. The ASP contains certain restrictive covenants relating to the quality of our accounts receivable and cross-default provisions with our Sixth Amended and Restated Credit Facility Agreement ("Domestic Credit Facility"), senior unsecured notes and any other indebtedness we may have over $75.0 million. The administrative agent under the ASP is also a participant in our Domestic Credit Facility. The participating financial institutions have investment grade credit ratings. We continue to evaluate their credit ratings and have no reason to believe they will not perform under the ASP. As of March 31, 2017, we believe we were in compliance with all covenant requirements. Long-Term Debt Domestic Credit Facility On August 30, 2016, we replaced an earlier $950.0 million credit facility with a $900.0 million credit facility (the "Domestic Credit Facility"), which consisted of a $650.0 million unsecured revolving credit facility and a $250.0 million unsecured term loan and matures in August 2021 (the "Maturity Date"). Under our Domestic Credit Facility, we had outstanding borrowings of $341.5 million, of which $220.0 million was the term loan balance, as well as $4.4 million committed to standby letters of credit as of March 31, 2017. Subject to covenant limitations, $524.1 million was available for future borrowings. The unsecured term loan also matures on the Maturity Date and requires quarterly principal repayments of $7.5 million; however, we made $30.0 million of required principal repayments for 2017 in November 2016. The revolving credit facility allows up to $100.0 million of letters of credit to be issued and also includes a subfacility for swingline loans of up to $65.0 million. Additionally, at our request and subject to certain conditions, the commitments under the Domestic Credit Facility may be increased by a maximum of $350.0 million as long as existing or new lenders agree to provide such additional commitments. Our weighted average borrowing rate on the facility was as follows:
| As of March 31, 2017 |  | As of December 31, 2016
Weighted average borrowing rate | 2.23 | % |  | 2.00 | %
Our Domestic Credit Facility is guaranteed by certain of our subsidiaries and contains financial covenants relating to leverage and interest coverage. Other covenants contained in the Domestic Credit Facility restrict, among other things, certain mergers, asset dispositions, guarantees, debt, liens, and affiliate transactions. The financial covenants require us to maintain a defined Consolidated Indebtedness to Adjusted EBITDA Ratio and a Cash Flow (defined as EBITDA minus capital expenditures) to Net Interest Expense Ratio. The required ratios under our Domestic Credit Facility are detailed below:
Consolidated Indebtedness to Adjusted EBITDA Ratio no greater than | 3.5 : 1.0
Cash Flow to Net Interest Expense Ratio no less than | 3.0 : 1.0
Our Domestic Credit Facility contains customary events of default. These events of default include nonpayment of principal or interest, breach of covenants or other restrictions or requirements, default on certain other indebtedness or receivables securitizations (cross default), and bankruptcy. A cross default under our Domestic Credit Facility could occur if:
• | We fail to pay any principal or interest when due on any other indebtedness or receivables securitization of at least $75.0 million; or
• | We are in default in the performance of, or compliance with any term of any other indebtedness or receivables securitization in an aggregate principal amount of at least $75.0 million or any other condition exists which would give the holders the right to declare such indebtedness due and payable prior to its stated maturity.
Each of our major debt agreements contains provisions by which a default under one agreement causes a default in the others (a "cross default"). If a cross default under the Domestic Credit Facility, our senior unsecured notes, our lease of our corporate headquarters in Richardson, Texas (recorded as an operating lease), or our ASP were to occur, it could have a wider impact on our liquidity than might otherwise occur from a default of a single debt instrument or lease commitment. If any event of default occurs and is continuing, lenders with a majority of the aggregate commitments may require the administrative agent to terminate our right to borrow under our Domestic Credit Facility and accelerate amounts due under our Domestic Credit Facility (except for a bankruptcy event of default, in which case such amounts will automatically become due and payable and the lenders’ commitments will automatically terminate). As of March 31, 2017, we believe we were in compliance with all covenant requirements. Senior Unsecured Notes We issued $350.0 million of senior unsecured notes in November 2016 (the "2016 Notes") which will mature on November 15, 2023 with interest being paid on May 15 and November 15 at 3.00% per annum semiannually. We also have $200.0 million of senior unsecured notes issued in 2010 (the "2010 Notes") which will mature on May 15, 2017 with interest being paid at 4.90% per annum semiannually. Both Notes are guaranteed, on a senior unsecured basis, by each of our domestic subsidiaries that guarantee payment by us of any indebtedness under our Domestic Credit Facility. The indenture governing the Notes contains covenants that, among other things, limit our ability and the ability of the subsidiary guarantors to: create or incur certain liens; enter into certain sale and leaseback transactions; enter into certain mergers, consolidations and transfers of substantially all of our assets; and, in the case of the 2010 Notes, transfer certain properties. The indenture also contains a cross default provision which is triggered if we default on other debt of at least $75.0 million in principal which is then accelerated, and such acceleration is not rescinded within 30 days of the notice date. As of March 31, 2017, we believe we were in compliance with all covenant requirements.

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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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