XML 26 R13.htm IDEA: XBRL DOCUMENT
v3.20.2

Debt | 6 Months Ended
--- | ---
Jun. 30, 2020
Debt Disclosure [Abstract] |
Debt | Debt Long-term debt consisted of the following (in thousands):
| June 30, |  | December 31,
| 2020 |  | 2019
Bank credit facility - term loan | $ | 97,363 |  |  | $ | 120,800 |
Bank credit facility - revolver loans | 165,712 |  |  | 152,000 |
Principal amount of long-term debt | 263,075 |  |  | 272,800 |
Less debt issuance costs | (2,959 | ) |  | (2,789 | )
Total long-term debt | 260,116 |  |  | 270,011 |
Less current portion | (18,504 | ) |  | (16,883 | )
Long-term debt, less current portion | $ | 241,612 |  |  | $ | 253,128 |
We have a loan agreement with a group of banks that expires in January 2023. We borrow amounts under the loan agreement to provide working capital support, fund letters of credit and finance acquisitions. The loan agreement includes a term and revolving loan facilities. The revolving loan facility provides for revolving loans and letters of credit. In June 2020, we amended the loan agreement to provide increased covenant flexibility in response to changes in financial operating performance resulting from the COVID-19 pandemic. Financing costs associated with the loan agreement amendment of approximately $636 thousand were capitalized and are being amortized over the remaining term of the loan. The fair value of outstanding debt as of June 30, 2020 under our bank loan facilities approximates its carrying value using Level 2 inputs based on market data on companies with a corporate rating similar to ours that have recently priced credit facilities. Our required term and revolver loan payments after June 30, 2020 are as follows (in thousands):
2020 |  | 9,375 |
2021 |  | 21,563 |
2022 |  | 22,500 |
2023* |  | 209,637 |
Total |  | $ | 263,075 |
*Includes the revolver loan required payment of $165.7 million. The maximum amount of credit available under the loan agreement for revolving loans and letters of credit as of June 30, 2020 was $350 million. We pay an unused commitment fee and fees on letters of credit that are issued. We had no letters of credit outstanding as of June 30, 2020 and $54 thousand in letters of credit outstanding as of December 31, 2019. Under the loan agreement we may elect to increase the maximum availability of the term loan facility, the revolving loan facility, or both facilities, up to an aggregate additional amount of $100 million. We pay interest on the term loan borrowings and revolving loan borrowings at LIBOR plus a base margin or at a base rate (typically the prime rate) plus a base margin. As of June 30, 2020, the LIBOR base margin was 3.00% and the base rate base margin was 1.75%. The base margins increase or decrease in increments as our Total Funded Debt/EBITDA Ratio increases or decreases. The loan agreement requires interest rate hedges on a portion of the outstanding term loan until February 6, 2021. We have executed compliant interest rate hedges. The amount of our debt with interest rate swap agreements was $145 million and $125 million as of June 30, 2020 and December 31, 2019, respectively. After taking into account the impact of interest rate swap agreements, as of June 30, 2020, interest rates on portions of our outstanding debt ranged from 3.73% to 5.81%, and the effective interest rate on our aggregate outstanding debt was 4.54%. Interest expense incurred on bank loan borrowings and interest rate hedges was approximately $2.9 million and $3.4 million for the three months ended June 30, 2020 and 2019, respectively, and $6.3 million and $6.3 million for the six months ended June 30, 2020 and 2019, respectively. The loan agreement contains collateral requirements to secure our loan agreement obligations, restrictive covenants, a limit on annual dividends, and other affirmative and negative covenants, conditions, and limitations. Restrictive covenants include a maximum Total Funded Debt/EBITDA Ratio and a minimum Fixed Charge Coverage Ratio. We were in compliance with required ratios and other terms and conditions as of June 30, 2020. We continue to monitor the impacts of COVID-19 on our results of operations and liquidity relative to compliance with financial covenants; at this time, we expect that we will remain in compliance with such covenants over the next twelve months.

X
- References No definition available. + Details
Name: | us-gaap_DebtDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -URI http://asc.fasb.org/topic&trid=2208564 + Details
Name: | us-gaap_DebtDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration