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Indebtedness | 12 Months Ended
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Mar. 31, 2012
Indebtedness [Abstract] |
Indebtedness | Note 16: Indebtedness Long-term indebtedness was comprised of the following:
Type of issue |  | Interest rate percentage at March 31, 2012 |  |  | Fiscal year of maturity |  |  | March 31, 2012 |  |  | March 31, 2011 |
Various foreign denominated borrowings |  | Various |  |  |  | 2013-2015 |  |  | $ | 2,319 |  |  | $ | - |
Denominated in U.S. dollars: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Fixed rate - |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
2020 Notes |  |  | 6.83 |  |  |  | 2021 |  |  |  | 125,000 |  |  |  | 125,000 |
Variable rate - |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Revolving credit facility |  |  | 2.24 |  |  |  | 2015 |  |  |  | 9,000 |  |  |  | 6,500 |
|  |  |  |  |  |  |  |  |  |  | 136,319 |  |  |  | 131,500 |
Capital lease obligations |  |  |  |  |  |  | 2013-2029 |  |  |  | 6,666 |  |  |  | 7,344 |
|  |  |  |  |  |  |  |  |  |  | 142,985 |  |  |  | 138,844 |
Less current portion |  |  |  |  |  |  |  |  |  |  | 1,093 |  |  |  | 262 |
Total long-term debt |  |  |  |  |  |  |  |  |  | $ | 141,892 |  |  | $ | 138,582 |
On March 15, 2012, the Company entered into the First Amendment to Amended and Restated Credit Agreement and Waiver with six financial institutions led by JPMorgan Chase Bank, N.A. The agreement amended the existing four-year $145,000 revolving credit facility. Modine entered into this agreement for purposes of obtaining more favorable pricing and more flexible covenants, modifying certain other provisions of the then existing credit agreement, and to obtain waivers for certain defaults relating to unfunded liabilities associated with the Company's benefit plans. Under the terms of the amended agreement, interest is based on a variable interest rate of London Interbank Offered Rate (LIBOR) plus 150 to 250 basis points depending upon the Company's Consolidated Total Debt to Consolidated Adjusted Earnings before Interest, Taxes, Depreciation and Amortization ratio (leverage ratio) for the then four preceding fiscal quarters. As of March 31, 2012, the Company's variable interest rate was LIBOR plus 200 basis points, or 2.24 percent. The Company incurred $363 of fees to its creditors in conjunction with the First Amendment to Amended and Restated Credit Agreement and Waiver, which will be amortized as a component of interest expense over the four-year term of the facility. At March 31, 2012, $9,000 was outstanding under the revolving credit facility. On March 15, 2012, the Company also entered into the First Amendment to Note Purchase and Private Shelf Agreement and Wavier (Note Purchase Agreement) with Prudential Investment Management, Inc., The Prudential Insurance Company of America and Prudential Retirement Insurance and Annuity Company. Modine entered into this agreement for purposes of obtaining more flexible covenants, modifying certain other provisions of the original note purchase agreement to conform with the credit agreement, and obtaining waivers for certain defaults relating to unfunded liabilities associated with the Company's benefit plans. During fiscal 2011, the Company entered into the $125,000 Senior Notes, the proceeds of which were used to repay the then existing Senior Notes. The Company recognized a loss of $17,866 on early extinguishment of debt as a component of interest expense, which included the prepayment of $16,570 and $1,296 of unamortized debt issuance costs. Provisions in the Company's Amended and Restated Credit Agreement and Note Purchase Agreement include restrictive covenants. The Company is subject to an adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) to interest expense (interest expense coverage ratio) covenant and a leverage ratio covenant. Adjusted EBITDA is defined as earnings from continuing operations before interest expense and provision for income taxes, adjusted to exclude unusual, non-recurring or extraordinary non-cash charges and up to $40,000 of cash restructuring and repositioning charges, not to exceed $20,000 in any fiscal year, and further adjusted to add back depreciation and amortization. The Company is required to maintain the interest expense coverage ratio and leverage ratio covenants based on the following ratios:
| Interest Expense Coverage Ratio Covenant (Not Permitted to Be Less Than): |  | Leverage Ratio Covenant (Not Permitted to Be Greater Than):
Fiscal quarter ending on or before August 12, 2014 | 3.00 to 1.0 |  | 3.25 to 1.0
All fiscal quarters ending thereafter | 3.00 to 1.0 |  | 3.00 to 1.0
After giving consideration to the amendments and waivers the Company received during the fiscal year, the Company was in compliance with its covenants as of March 31, 2012. The Company has various other long-term fixed rate and variable rate notes at foreign locations as of March 31, 2012 with interest rates ranging from 1.11 percent to 5.20 percent and maturities from fiscal 2013 to fiscal 2015. Long-term debt matures as follows:
Years ending March 31 |  |  |
2013 |  | $ | 1,093 |
2014 |  |  | 297 |
2015 |  |  | 10,781 |
2016 |  |  | 297 |
2017 |  |  | 8,297 |
2018 & beyond |  |  | 122,220 |
Modine also maintains credit agreements with foreign banks with outstanding balances of short term borrowings at March 31, 2012 and March 31, 2011 of $21,296 and $8,825, respectively. The foreign unused lines of credit in Europe, Brazil and China at March 31, 2012 were approximately $37,257. Domestic unused lines of credit at March 31, 2012, were $136,000. In aggregate, the Company had total available lines of credit of $173,257 at March 31, 2012. The fair value of the long-term debt is estimated by discounting the future cash flows at rates available to the Company for similar debt instruments of comparable maturities. At March 31, 2012 and March 31, 2011, the carrying value of Modine's long-term debt approximated fair value, with the exception of the Senior Notes, which had a fair value of approximately $139,234 and $121,463, respectively. The fair value of the Senior Notes is categorized within Level 2 of the hierarchy. Refer to Note 19 for the definition of a Level 2 fair value measurement. Interest expense charged to earnings was as follows:
Years ending March 31 |  | 2012 |  |  | 2011 |  |  | 2010 |
Gross interest cost |  | $ | 12,565 |  |  | $ | 34,065 |  |  | $ | 24,162 |
Capitalized interest on major construction projects |  |  | (82 | ) |  |  | (342 | ) |  |  | (1,274 | )
Interest expense |  | $ | 12,483 |  |  | $ | 33,723 |  |  | $ | 22,888 |

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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 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 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 129 -Paragraph 2, 4 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 3: 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 4: 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 + Details
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