DEBT

The following table summarizes the components of long-term borrowings and capital lease obligations:



(in millions)	June 30, 2014		December 31, 2013
Senior Secured Credit Facility:
Revolving credit facility	$	—	$	20.0
Term loan	69.4		70.8
Capital lease obligations	1.1		1.3
Total long-term borrowings and capital lease obligations, including current portion	70.5		92.1
Less: Current maturities	7.5		7.0
Less: Current capital lease obligations	0.4		0.4
Total long-term borrowings and capital lease obligations, net	$	62.6	$	84.7

The following table summarizes the carrying amounts and fair values of the Company’s financial instruments:



	June 30, 2014				December 31, 2013
	Notional Amount		Fair Value		Notional Amount		Fair Value
Short-term debt	$	5.0	$	5.0	$	—	$	—
Long-term debt (1)	70.5		70.5		92.1		92.1


(1)	Long-term debt includes current portions of long-term debt and current portions of capital lease obligations of $7.9 million and $7.4 million as of June 30, 2014 and December 31, 2013, respectively.

In the first quarter of 2013, upon execution of a $225.0 million senior secured credit facility (the “Senior Secured Credit Facility”) comprised of a five-year fully funded term loan of $75.0 million and a five-year $150.0 million revolving credit facility, the Company recorded $8.7 million of costs related to the termination of its prior debt agreements. The costs included a $4.2 million early termination penalty payment which was equal to 2.75% of the outstanding balance of the prior term loan and a $4.5 million write-off of the remaining unamortized deferred financing costs related to the previous credit facility.

The Company incurred $1.9 million of debt issuance costs associated with the execution of the Senior Secured Credit Facility. Financing costs incurred in connection with the Senior Secured Credit Facility are deferred and amortized over the remaining life of the new debt.

On April 18, 2014, the Company executed an amendment to the Senior Secured Credit Facility. The changes resulting from the amendment were primarily administrative in nature, including modifications to facilitate the repurchase of the Company's common stock. No fees were incurred in connection with executing the amendment, nor were there any changes to financial covenant requirements.

As of June 30, 2014, there was no cash drawn and $26.4 million of undrawn letters of credit under the $150.0 million revolving credit facility portion of the Senior Secured Credit Facility, with $123.6 million of net availability for borrowings.

As of June 30, 2014, $5.0 million was drawn against the Company’s non-U.S. lines of credit which provide for borrowings of up to $13.8 million.

For the six months ended June 30, 2014 and 2013, gross borrowings under the Company's domestic revolving credit facility were $6.5 million and $104.0 million, respectively. For the six months ended June 30, 2014 and 2013, gross payments under the Company's domestic revolving credit facility were $26.5 million and $37.5 million, respectively.

The Senior Secured Credit Facility requires the Company to comply with financial covenants related to the maintenance of a minimum fixed charge coverage ratio and maximum leverage ratio. The financial covenants are measured at each fiscal quarter-end. Restricted payments, including dividends, shall be permitted only if the pro-forma leverage ratio after giving effect to such payment is less than 3.25x, pro-forma compliance after giving effect to such payment is maintained for all other financial covenants, and there are no existing defaults under the Senior Secured Credit Facility. The Company was in compliance with all of its debt covenants as of June 30, 2014.

Interest Rate Swap

In the first quarter of 2013, the Company entered into an interest rate swap (the “Swap”) with a notional amount of $75.0 million, as a means of fixing the floating interest rate component on $75.0 million of its variable rate debt under the Senior Secured Credit Facility. The Swap is designated as a cash flow hedge, with a termination date of March 13, 2018. As a result of the application of hedge accounting treatment, all unrealized gains and losses related to the derivative instrument are recorded in accumulated other comprehensive income (loss) and are reclassified into operations in the same period in which the hedged transaction affects earnings. Hedge effectiveness is tested quarterly. We do not use derivative instruments for trading or speculative purposes.

As more fully described within Note 1, Significant Accounting Policies, in the Company’s Annual Report on Form 10-K for the year ended December 31, 2013, the Company uses a three-level fair value hierarchy that prioritizes the inputs used to measure fair value. The fair value of the Swap is derived from a discounted cash flow analysis based on the terms of the contract and the interest rate curve (Level 2 inputs) and measured on a recurring basis in our consolidated balance sheet. At June 30, 2014 and December 31, 2013, the fair value of the Swap, included in deferred charges and other long-term assets on the condensed consolidated balance sheets, was $0.1 million and $0.4 million at June 30, 2014 and December 31, 2013, respectively, and no ineffectiveness was recorded. During the three and six months ended June 30, 2014, an unrealized pre-tax loss of $0.3 million and $0.3 million, respectively, was recorded against accumulated other comprehensive loss. During the three and six months ended June 30, 2013, an unrealized pre-tax gain of $1.2 million and $0.5 million, respectively, was recorded against accumulated other comprehensive loss.