Debt and Credit Arrangements

12 Months Ended

Dec. 31, 2016

Note E - Debt and Credit Arrangements

	December 31
	2016			2015
Short-term debt
Secured notes
Brazilian Real denominated at 5.35% in 2015 and 2016	$	0		$	301
Australian dollar denominated at 3.17% in 2015, due 2016		0			112
Thailand Bhat denominated at 4.00% in 2016		1,315			0
Current portion of long-term debt		1,448			110
Total short-term debt		2,763			523

Long-term debt
USD denominated at 1.90%, due 2019		29,429			30,505
USD denominated at 2.71%, due 2026		13,881			0
Australian dollar denominated at 2.745%, due 2019		1,081			1,093
Australian dollar denominated term loans, at 5.59% in 2015 and 2016, due 2018, secured by land and building		0			266
Total long-term debt		44,391			31,864
Less current portion		(1,448	)		(110	)
Total long-term debt, less current portion		42,943			31,754
Total debt	$	45,706		$	32,277

On June 27, 2016, the Company borrowed $14.5 million at a fixed rate of 2.71%, due July 1, 2026 to finance the purchase of a Company aircraft. The loan is secured by the newly purchased aircraft. In August 2016, the Company increased its borrowing capacity on its existing line of credit from $50 million to $65 million and extended the term to June 30, 2019. All other terms remained the same, including the interest rate of LIBOR plus 1.125%, unless its funded debt to Earnings before Interest, Taxes and Depreciation ratio exceeds 2.25 to 1, then the LIBOR spread becomes 1.500%. The PLP-USA line of credit provides for $5.0 million to be available to the Company’s subsidiaries. At December 31, 2016, the Company’s Australian subsidiary had borrowed $1.5 million Australian dollars at a rate of 1.125% plus the Australian Bank Bill Swap Bid Rate with a term expiring June 30, 2019. At December 31, 2016, the interest rate on the Australian line of credit agreement was 2.745%. There was $34.5 million available at December 31, 2016 under the line of credit net of long-term outstanding letters of credit. The line of credit agreement contains, among other provisions, requirements for maintaining levels of net worth and profitability. At both December 31, 2016 and 2015, the Company was in compliance with all covenants.

Aggregate maturities of long-term debt during the next five years are as follows: $1.4 million for 2017, $1.4 million for 2018, $32.0 million for 2019, and $9.6 thereafter.

Interest paid was $.7 million in 2016, $.5 million in 2015 and $.6 million in 2014.

Guarantees and Letters of Credit

The Company has provided financial guarantees for uncompleted work and financial commitments. The terms of these guarantees vary with end dates ranging from the current year through the completion of such transactions. The guarantees would typically be triggered in the event of nonperformance. As of December 31, 2016, the Company had total outstanding guarantees of $5.7 million. Additionally, certain domestic and foreign customers require the Company to issue letters of credit or performance bonds as a condition of placing an order. As of December 31, 2016, the Company had total outstanding letters of credit of $2.0 million.