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Financing Arrangements
6 Months Ended
Jun. 30, 2011
Line of Credit Facility [Abstract]  
Financing Arrangements
Financing Arrangements
Revolving Credit Facility. The Company has a revolving credit facility with a number of banks which terminates in June 2013. In May 2011, pursuant to the terms of the revolving credit facility agreement, the Company and the facility banks agreed to increase the total amount that can be drawn upon from $125.0 million to a maximum of $200.0 million. There was no debt outstanding during the three and six months ended June 30, 2011 and 2010. The revolving credit facility requires the Company to maintain a specified leverage ratio and, subject to specific exceptions, prohibits the Company from taking certain actions without the lenders' consent, such as granting liens or entering into any merger or other significant transaction. The revolving credit facility also prohibits the Company from paying dividends on its capital stock if, after giving pro forma effect to such dividend, an event of default would occur or exist under the revolving credit facility. The Company is required to pay a commitment fee on undrawn amounts at an annual rate of 0.375%. Interest on borrowed amounts is determined by reference to i) either the lending banks' base rate plus 0.50% per annum or ii) LIBOR plus 1.50% per annum. Interest costs incurred as a result of the commitment fee were $0.2 million and $0.1 million for the three months ended June 30, 2011 and 2010, respectively. Interest costs incurred as a result of the commitment fee were $0.3 million and $0.2 million for the six months ended June 30, 2011 and 2010, respectively.
As of June 30, 2011, the Company was in compliance with all applicable financial debt covenants.