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Debt | 9 Months Ended
--- | ---
Sep. 27, 2015
Debt |
Debt | NOTE 10 - Debt Long-term debt was comprised of the following:
|  | As of |
|  | September 27, |  | December 31, |
($ in thousands) |  | 2015 |  | 2014 |
Revolving credit facility due in 2020 |  | $ | 90,500 |  | $ | 75,000 |
Weighted average interest rate |  |  | 1.5 | % |  | 1.5 | %
Amount available |  | $ | 107,185 |  | $ | 122,535 |
Total credit facility |  | $ | 200,000 |  | $ | 200,000 |
Standby letters of credit |  | $ | 2,315 |  | $ | 2,465 |
Commitment fee percentage per annum |  |  | 0.30 |  |  | 0.25 |
On August 10, 2015, CTS entered into a new five-year credit agreement with a group of banks (“Revolving Credit Facility”) in order to support CTS’ working capital needs and other general corporate purposes. The Revolving Credit Facility provides for a credit line of $200,000,000, which may be increased by $100,000,000 at the request of CTS, subject to an Administrative Agent’s approval. This Revolving Credit Facility replaces the prior unsecured credit facility. Borrowings under the previous credit agreement were refinanced under the new Revolving Credit Facility and the previous credit agreement was terminated on August 10, 2015. The revolving credit facility provided under the new credit agreement includes a swing line sublimit of $15,000,000 and a letter of credit sublimit of $10,000,000. Borrowings under the credit facility bear interest, at CTS’ option, at the base rate plus the applicable margin for base rate loans or LIBOR plus the applicable margin for LIBOR loans. CTS also pays a quarterly commitment fee on the unused portion of the revolving credit facility. The commitment fee may range from 0.20% to 0.40% based on the CTS’ total leverage ratio. The revolving credit facility requires, among other things, that CTS comply with a maximum total leverage ratio and a minimum fixed charge coverage ratio. Failure of CTS to comply with these covenants could reduce the borrowing availability under the revolving credit facility. CTS was in compliance with all debt covenants at September 27, 2015. The revolving credit facility requires CTS to deliver quarterly financial statements, annual financial statements, auditors certifications and compliance certificates within a specified number of days after the end of a quarter and year. Additionally, the revolving credit facility contains restrictions limiting CTS' ability to: dispose of assets; incur certain additional debt; repay other debt or amend subordinated debt instruments; create liens on assets; make investments, loans or advances; make acquisitions or engage in mergers or consolidations; engage in certain transactions with CTS' subsidiaries and affiliates; and make stock repurchases and dividend payments. Interest rates on the revolving credit facility fluctuate based upon the London Interbank Offered Rate and the Company’s quarterly total leverage ratio. CTS pays a commitment fee on the undrawn portion of the revolving credit facility. The commitment fee varies based on the quarterly leverage ratio. CTS has debt issuance costs related to its long-term debt that are being amortized using the straight-line method over the life of the debt. Amortization expense was approximately $61,000 for the three months ended September 27, 2015 and approximately $165,000 for the nine months ended September, 27, 2015 and was recognized as interest expense. CTS uses interest rate swaps to convert the revolving credit facility’s variable rate of interest into a fixed rate. In the second quarter of 2012, CTS entered into four separate interest rate swap agreements to fix interest rates on $50,000,000 of long-term debt for the periods January 2013 to January 2017. In the third quarter of 2012, CTS entered into four separate interest rate swap agreements to fix interest rates on $25,000,000 of long-term debt for the periods January 2013 to January 2017. The difference to be paid or received under the terms of the swap agreements will be recognized as an adjustment to interest expense when settled. These swaps are treated as cash flow hedges and consequently, the changes in fair value were recorded in Other comprehensive (loss) income. The estimated net amount of the existing gains or losses that are reported in accumulated other comprehensive (loss) income that is expected to be reclassified into earnings within the next twelve months is approximately $556,000. Interest rate swaps activity recorded in Other comprehensive (loss) earnings before tax includes the following:
|  | Three Months Ended |  | Nine Months Ended |
($ in thousands) |  | September 27, 2015 |  | September 28, 2014 |  | September 27, 2015 |  | September 28, 2014 |
Unrealized (loss) gain |  | $ | (219) |  | $ | 124 |  | $ | (628) |  | $ | (288) |
Realized gain reclassified to interest expense |  | $ | 192 |  | $ | 123 |  | $ | 574 |  | $ | 363 |
Interest rate swaps included on the balance sheets are comprised of the following:
|  | As of |
|  | September 27, |  | December 31, |
($ in thousands) |  | 2015 |  | 2014 |
Accrued liabilities |  | $ | 892 |  | $ | 640 |
Other long-term obligations |  | $ | 181 |  | $ | 380 |

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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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