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Corporate Borrowings and Capital Lease Obligations | 12 Months Ended
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Dec. 31, 2016
Debt Disclosure [Abstract] |
Corporate Borrowings and Capital Lease Obligations |
NOTE 5: | CORPORATE BORROWINGS AND CAPITAL LEASE OBLIGATIONS
Indebtedness Outstanding. Debt consists of the following:
| December 31,
| 2016 |  | 2015
Credit Agreement - Revolver, 2.45% (variable rate) due 2020 | $ | 16,000 |  |  | $ | 23,172 |
Credit Agreement - Fixed Asset Sub-Line term loan, 2.86% (variable rate) due 2020 | 5,253 |  |  | 6,254 |
Credit Agreement - term loan, 2.86% (variable rate) due 2020 | 13,000 |  |  | — |
Secured Promissory Note, 3.71% (variable rate) due 2022 | 2,324 |  |  | 2,670 |
Secured Promissory Note, 6.89% (variable rate), due 2016. | — |  |  | 36 |
Capital Lease Obligation, 2.61%, due 2017 | — |  |  | 1,964 |
Unamortized loan fees(a) | (576 | ) |  | (636 | )
Total | 36,001 |  |  | 33,460 |
Less current maturities of long term debt | (4,359 | ) |  | (3,345 | )
Long-term debt | $ | 31,642 |  |  | $ | 30,115 |
(a) Loan fees are being amortized over the life of the Credit Agreement. On March 21, 2016, the Company entered into a Third Amended and Restated Credit Agreement (the "Credit Agreement") with Wells Fargo Bank, National Association. The Credit Agreement contains customary terms and conditions substantially similar to the Second Amended and Restated Credit Agreement (the "Previous Credit Agreement") and associated schedules with Wells Fargo Bank, National Association, except as described in the discussion that follows. Such terms and conditions include limitations on mergers, consolidations, reorganizations, recapitalizations, indebtedness and certain payments, as well as financial condition covenants relating to leverage and interest coverage ratios. The Company's obligations under the Credit Agreement may be accelerated upon customary events of default, including, without limitation, non-payment of principal or interest, breaches of covenants, certain judgments against the loan parties, cross defaults to other material debt, a change in control and specified bankruptcy events. The Credit Agreement added a $15,000 term loan to the Previous Credit Agreement's $80,000 revolving facility resulting in a $95,000 facility. The principal of the term loan can be prepaid at any time without penalty or otherwise will be repaid by the Company in installments of $250 each month, which commenced on May 1, 2016. Additionally, the Credit Agreement reduced certain restrictions on acquisitions. Under the Previous Credit Agreement, only acquisitions less than $1,000 individually and $7,500 in the aggregate were permitted. The Credit Agreement eliminated the individual dollar limitation and increased the aggregate limitation to $35,000. The Credit Agreement also added an increased minimum fixed charge coverage ratio of 1.25 x (compared to 1.10 x in the Previous Credit Agreement) while the $15,000 term loan is outstanding. However, the minimum fixed charge coverage ratio is only tested if excess availability, after giving effect to such restricted payment, is less than 17.5 percent of the total amount of the facility. The Company was in compliance with the Credit Agreement covenants at December 31, 2016. The amount of borrowings which the Company may make is subject to borrowing base limitations adjusted for the Fixed Asset Sub-Line collateral as described in the Credit Agreement. As of December 31, 2016, the Company's total outstanding borrowings under the Credit Agreement (net of unamortized loan fees of $576) were $33,677, comprised of $15,424 of revolver borrowing, $5,253 of fixed asset sub-line term loan borrowing, and $13,000 of term loan borrowing leaving $51,588 available. The average interest rate for total borrowings of the Credit Agreement at December 31, 2016 was 2.66 percent. Leases Capital Lease Obligation. On June 28, 2011, the Company sold a major portion of the new process water cooling towers and related equipment installed at its Atchison facility to U.S. Bancorp Equipment Finance, Inc. for $7,335 and leased them from U.S. Bancorp pursuant to a Master Lease Agreement and related Schedule. Monthly rentals under the lease were $110 (plus applicable sales/use taxes, if any) and continued until the Company exercised its option to purchase the leased property after 60 months in June 2016 for $1,328. As described in Note 2, equipment under a capital lease is included in property and equipment. 4.90% Industrial Revenue Bond Obligation. On December 28, 2006, the Company engaged in an industrial revenue bond transaction with the City of Atchison, Kansas ("the City") pursuant to which the City (i) under a trust indenture, ("the Indenture"), issued $7,000 principal amount of its industrial revenue bonds ("the Bonds") to the Company and used the proceeds thereof to acquire from the Company its office building and technical innovations center in Atchison, Kansas, ("the Facilities") and (ii) leased the Facilities back to the Company under a capital lease ("the Lease"). The assets related to this transaction are included in property and equipment. The Bonds matured and the Lease expired December 1, 2016, and, accordingly, are no longer offset items at December 31, 2016.
|  | (1) |  | (2) |  | (3) = (1) - (2)
|  | Gross Amounts of Recognized Assets (Liabilities) |  | Gross Amounts offset in the Balance Sheet |  | Net Amounts of Assets (Liabilities) presented in the Balance Sheet
December 31, 2015: |  |  |  |  |  |
Investment in bonds |  | $ | 7,000 |  |  | $ | 7,000 |  |  | $ | 0 |  |
Capital lease obligation |  | $ | (7,000 | ) |  | $ | (7,000 | ) |  | $ | 0 |  |
Leases and Debt Maturities. The Company leases railcars and other assets under various operating leases. For railcar leases, the Company is generally required to pay all service costs associated with the railcars. Rental payments include minimum rentals plus contingent amounts based on mileage. Rental expenses under operating leases with terms longer than one month were $2,561, $2,283, and $2,241 for the years ended December 31, 2016, 2015, and 2014, respectively. Minimum annual payments and present values under existing debt maturities are as follows:
Year Ending December 31, |  | Credit Agreement |  | Long-Term Debt |  | Total Debt
2017 |  | $ | — |  |  | $ | 358 |  |  | $ | 358 |
2018 |  | — |  |  | 372 |  |  | $ | 372 |
2019 |  | — |  |  | 386 |  |  | $ | 386 |
2020 |  | 34,253 |  |  | 400 |  |  | $ | 34,653 |
2021 |  | — |  |  | 416 |  |  | $ | 416 |
Thereafter |  | — |  |  | 392 |  |  | $ | 392 |
Total |  | $ | 34,253 |  |  | $ | 2,324 |  |  | $ | 36,577 |

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- Definition The entire disclosure for debt and capital lease obligations can be reported. 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. Also includes descriptions and amounts of capital leasing arrangements that consist of direct financing, sales type and leveraged leases. Disclosure may include the effect on the balance sheet and the income statement resulting from a change in lease classification for leases that at inception would have been classified differently had guidance been in effect at the inception of the original lease. + References No definition available. + Details
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