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CREDIT AGREEMENT
6 Months Ended
Jun. 30, 2014
CREDIT AGREEMENT [Abstract]  
CREDIT AGREEMENT
CREDIT AGREEMENT
 
On August 19, 2013, the Company entered into a Second Amended and Restated Credit Agreement (the "Credit Facility"), which amended and restated the Company's previous credit facility in its entirety. The amended Credit Facility consists of a revolving loan commitment of $400.0 million, with a Company option to increase the total revolving loan commitment to $500.0 million subject to certain conditions. The expiration date under the amended Credit Facility was extended to August 19, 2018. Borrowings under the facility bear interest at either (i) the Base Rate, which is equal to the highest of (a) the administrative agent's prime rate, (b) the federal funds rate plus 1.50% and (c) the one month reserve adjusted daily London Interbank Offered Rate ("LIBOR") plus 1.50%, or (ii) LIBOR, in each case plus an applicable margin as in effect at each interest calculation date. The applicable margin in effect from time to time is based on the Company’s total leverage ratio. The applicable margins range from 1.25% to 1.75% for LIBOR loans and from 0.25% to 0.75% for Base Rate loans.

Certain of the Company's domestic subsidiaries have guaranteed the obligations of the Company and all future domestic subsidiaries of the Company also are required to guarantee the obligations of the Company under the Credit Facility. The Company's obligations are collateralized by a lien on substantially all of its present and future assets pursuant to a separate security agreement (the "Security Agreement"). In addition, the obligations of each subsidiary guarantor are collateralized by a lien on substantially all of such subsidiary’s present and future assets pursuant to a separate guaranty agreement (the "Guaranty Agreement"). The subsidiary guarantees and the collateral under the Security Agreement are subject to release upon fulfillment of certain conditions specified in the Credit Facility, Security Agreement and the Guaranty Agreement.
 
The Credit Facility is available to be used by the Company to, among other things, fund its working capital needs and for other general corporate purposes, including acquisitions and stock repurchases. The Company pays a commitment fee on the unused portion of the revolving loan commitment amount up to a maximum of 0.30% based on the Company’s total leverage ratio. The agreement also defines customary events of default such as failure to pay interest or principal when due, material inaccuracy of representations or warranties, bankruptcy events, change of control, a material adverse change in financial condition or operations, or a default of covenant. Upon the occurrence of an event of default, the principal and accrued interest under the Credit Facility then outstanding may be declared due and payable. At June 30, 2014, there was $65 million outstanding under the revolving loan commitment.
 
The Company has provided various representations and agreed to certain financial covenants including a total leverage ratio, a fixed charge coverage ratio and a minimum unrestricted, unencumbered liquid assets requirement. At June 30, 2014, and December 31, 2013, the Company was in compliance with all of the covenants required by its Credit Facility.