10.	Credit Agreements

Short-term borrowings are included in the consolidated balance sheets as follows:

	December 31,
	2018		2017
ABL facility	$	18,459	$	-
Other lines of credit		27,124		20,602
Total	$	45,583	$	20,602

Long-term borrowings are included in the consolidated balance sheets as follows:

	December 31,
	2018			2017
Term loan	$	879,000		$	929,000
Original issue discount and deferred financing costs		(22,440	)		(26,937	)
ABL facility		-			-
Capital lease obligation		20,171			4,690
Other		1,642			1,367
Total		878,373			908,120
Less: current portion of debt		1,075			936
Less: current portion of capital lease obligation		902			636
Total	$	876,396		$	906,548

Maturities of long-term borrowings (before considering original issue discount and deferred financing costs) outstanding at

December 31, 2018,

are as follows:

2019	$	1,927
2020		1,769
2021		1,267
2022		1,814
After 2022		894,036
Total	$	900,813

The Company’s credit agreements originally provided for a

$1,200,000

term loan B credit facility (Term Loan) and currently include a

$300,000

uncommitted incremental term loan facility. The maturity date of the Term Loan is

May 31, 2023.

The Term Loan is guaranteed by all of the Company’s wholly-owned domestic restricted subsidiaries, and is secured by associated collateral agreements which pledge a

first

priority lien on virtually all of the Company’s assets, including fixed assets and intangibles, other than all cash, trade accounts receivable, inventory, and other current assets and proceeds thereof, which are secured by a

second

priority lien. The Term Loan initially bore interest at rates based upon either a base rate plus an applicable margin of

1.75%

or adjusted LIBOR rate plus an applicable margin of

2.75%,

subject to a LIBOR floor of

0.75%.

Beginning in the

second

quarter of

2014,

and measured each quarterly period thereafter, the applicable margin related to base rate loans was reduced to

1.50%

and the applicable margin related to LIBOR rate loans is reduced to

2.50%,

in each case, if the Company’s net debt leverage ratio, as defined in the Term Loan, falls below

3.00

1.00

for that measurement period.

As the Company’s net debt leverage ratio continued to be above

3.00

1.00

July 1, 2016,

the Company recorded a cumulative catch-up loss of

$2,957

in the

third

quarter of

2016,

which represented the additional cash interest expected to be paid while the net debt leverage ratio was expected to be above

3.00

1.00

using current forecasts at that time. The loss was recorded against original issue discount and deferred financing costs on long-term borrowings in the consolidated balance sheets and as a loss on change in contractual interest rate in the consolidated statements of comprehensive income.

November 2016,

the Company amended its Term Loan to extend the maturity date from

May 31, 2020

May 31, 2023.

In connection with this amendment and in accordance with ASC

470

50,

the Company capitalized

$4,242

of fees paid to creditors as original issue discount and deferred financing costs on long-term borrowings and expensed

$315

of transaction fees in

2016.

May 2017,

the Company amended its Term Loan, modifying the pricing of the facility by reducing the applicable margin rates to base rate plus a fixed applicable margin of

1.25%

or adjusted LIBOR rate plus a fixed applicable margin of

2.25%.

Further, the amendment removed the pricing grid that would reduce the applicable margin if a net debt leverage ratio of

3.00

1.00

was achieved. As a result, the Company does

not

anticipate any future catch-up gains or losses resulting from changes in contractual interest rates to be recorded in the statements of comprehensive income. The amended Term Loan pricing is still subject to the

0.75%

LIBOR floor. In connection with this amendment and in accordance with ASC

470

50,

the Company capitalized

$1,432

of fees paid to creditors as deferred financing costs on long-term borrowings and expensed

$85

of transaction fees in the

second

quarter of

2017.

December 2017,

the Company amended the Term Loan, which further reduced the applicable margin rates to base rate plus a fixed applicable margin of

1.00%

or adjusted LIBOR rate plus a fixed applicable margin of

2.00%.

Additionally, the amendment eliminated the Excess Cash Flow payment requirement for

2017,

and will eliminate future requirements if the Company’s secured leverage ratio is maintained below

3.75

1.00

times. In connection with this amendment and in accordance with ASC

470

50,

the Company capitalized

$2,346

of fees paid to creditors as original issue discount and deferred financing costs on long-term borrowings and expensed

$38

of transaction fees in the

fourth

quarter of

2017.

June 2018,

the Company amended the Term Loan, which further reduced the applicable margin rates to base rate plus a fixed applicable margin of

0.75%

or adjusted LIBOR rate plus a fixed applicable margin of

1.75%.

In connection with this amendment and in accordance with ASC

470

50,

the Company capitalized

$829

of fees paid to creditors as deferred financing costs on long-term borrowings and expensed

$118

of transaction fees in

2018.

As of

December 31, 2018,

the Company’s net secured leverage ratio was

1.66

1.00

times, and the Company was in compliance with all covenants of the Term Loan. There are

financial maintenance covenants on the Term Loan.

The Company’s credit agreements also originally provided for a senior secured ABL revolving credit facility (ABL Facility). The maturity date of the ABL Facility is now

June 12, 2023.

Borrowings under the ABL Facility are guaranteed by all of the Company’s wholly-owned domestic restricted subsidiaries, and are secured by associated collateral agreements which pledge a

first

priority lien on all cash, trade accounts receivable, inventory, and other current assets and proceeds thereof, and a

second

priority lien on all other assets, including fixed assets and intangibles of the Company and certain domestic subsidiaries. ABL Facility borrowings initially bore interest at rates based upon either a base rate plus an applicable margin of

1.00%

or adjusted LIBOR rate plus an applicable margin of

2.00%,

in each case, subject to adjustments based upon average availability under the ABL Facility.

June 2018,

the Company amended the ABL Facility; increasing it from

$250,000

$300,000

and extending the maturity date to

June 12, 2023.

In addition, the ABL Facility amendment modified the pricing by reducing certain applicable interest rates to either a base rate plus an applicable margin of

0.375%

or an adjusted LIBOR rate plus an applicable margin of

1.375%.

In connection with this amendment and in accordance with ASC

470

50,

the Company capitalized

$755

of new debt issuance costs as deferred financing costs on long-term borrowings and wrote-off

$34

of capitalized debt issuance costs as a loss on extinguishment of debt in the

second

quarter of

2018.

June 2018,

the Company borrowed

$50,000

under the ABL Facility, the proceeds of which were used as a voluntary prepayment of the Term Loan. As a result of the prepayment of the Term Loan, the Company wrote-off

$1,298

of original issue discount and capitalized debt issuance costs during the

second

quarter of

2018

as a loss on extinguishment of debt in the consolidated statements of comprehensive income. In

October 2018,

the Company repaid the

$50,000

outstanding ABL Facility balance with cash on hand.

As of

December 31, 2018,

there was

$18,459

outstanding under the ABL Facility, leaving

$276,572

of availability, net of outstanding letters of credit.

As of

December 31, 2018

and

December 31, 2017,

short-term borrowings consisted of borrowings by the Company’s foreign subsidiaries on local lines of credit and the ABL Facility, which totaled

$45,583

and

$20,602,

respectively.