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Term Loan and Revolving Credit Facility
 9 Months Ended
Sep. 30, 2012
Debt Disclosure [Abstract]  
Term Loan and Revolving Credit Facility
 
4.  
Term Loan and Revolving Credit Facility
 
On January 3, 2011, the Company entered into a $100.0 million revolving credit agreement. On April 4, 2011, the Company entered into an Amended and Restated Revolving Credit and Term Loan Agreement (the “Credit Facility”) providing for a $100.0 million revolving credit facility and a $100.0 million term loan facility. The revolving portion of the Credit Facility, which includes a letter of credit subfacility of $50.0 million, matures on March 31, 2014, and amends and subsumes (as part of the new facility) the Company’s previous $100.0 million revolving credit agreement. The term loan portion of the Credit Facility matures on March 31, 2014, and, commencing December 31, 2011, includes required quarterly amortization payments in the amount of $2.5 million on December 31, 2011, $5.0 million on March 31, 2012, and $7.5 million on June 30, 2012, and at the end of each quarter thereafter prior to the final maturity date. Borrowings under the Credit Facility bear interest at LIBOR or a base rate, plus a margin ranging from 2.25% to 2.75%, depending on the Company’s leverage ratio. In addition, an unused commitment fee ranging from 0.30% to 0.40%, depending on the Company’s leverage ratio, accrues on unused amounts under the revolving credit facility. The Credit Facility is secured by substantially all of the personal property assets of the Company and its subsidiary. The Credit Facility contains customary affirmative, negative and financial maintenance covenants, representations, warranties, events of default and remedies upon default, including acceleration and rights to foreclose on the collateral securing the Credit Facility. The Company was in compliance with all the terms of the Credit Facility at September 30, 2012.
 
During the quarter ended September 30, 2012, the Company paid cash interest of $0.9 million.
 
As of September 30, 2012, the Company had outstanding $77.5 million under the term loan facility and $25.0 million under the revolving credit facility. On October 9, 2012, the Company borrowed an additional $10.0 million under the revolving credit facility.  On October 23, 2012, the Company repaid $35.0 million representing the entire outstanding amount of the revolving credit facility.
  
Debt and short-term borrowings consist of the following as of September 30, 2012 (in thousands):
 
Term loan
   $ 77,500  
Revolving credit facility
     25,000  
Total debt
     102,500  
         
Less: Current portion of long-term debt
     30,000  
Long-term debt
   $ 72,500  
 
Aggregate debt maturities as of September 30, 2012 are as follows:
 
2012
   $ 7,500  
2013
     30,000  
2014
     40,000  
    $ 77,500  
 
Interest Rate Swap
 
On April 4, 2011, the Company entered into an interest rate swap arrangement (the “Swap”) in order to minimize the interest rate exposure on the entire balance of the term loan facility. The interest rate swap fixes the variable interest rate on the associated debt at approximately 3.6% rather than being subject to fluctuations in the LIBOR rate. The term of the Swap is three years, matching the term of the underlying term loan facility. The Swap has been designated as a cash flow hedge and has been deemed effective in accordance with the Derivatives and Hedging Topic, ASC 815. The Company expects the Swap to continue to be deemed effective for the duration of the Swap. The fair value of the Swap is included in other long-term liabilities in the Company’s unaudited condensed consolidated balance sheets.