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Credit Arrangements
3 Months Ended
Sep. 30, 2014
Credit Arrangements [Abstract]  
Credit Arrangements

4.   CREDIT ARRANGEMENTS

 

The Company maintains a credit agreement which provides short-term working capital financing up to $25.0 million with interest of LIBOR plus 1%  (1.1565% at September 30, 2014), including up to $4.0 million of letters of credit. Letters of credit outstanding at September 30, 2014 totaled $2.9 million.  The Company utilized $8.0 million of borrowing availability under the credit facility during the period, which is classified as “Notes Payable” in the Consolidated Balance Sheets, in addition to the aforementioned letters of credit, leaving borrowing availability of $14.1 million. The credit agreement expires June 30, 2016. At September 30, 2014, the Company was in compliance with all of the financial covenants contained in the credit agreement.

 

An officer of the Company is a director at a bank where the Company maintains an additional unsecured $8.0 million line of credit, with interest at prime minus 2% (1.25% at September 30, 2014), and where its routine banking transactions are processed. The Company utilized borrowing availability during the period and $4.0 million was outstanding on the line of credit at September 30, 2014, which is classified as “Notes Payable” in the Consolidated Balance Sheets. The credit agreement expires February 13, 2015. In addition, the Supplemental Plan assets, held in a Rabbi Trust, of $3.8 million are administered by this bank's trust department. The Company receives no special services or pricing on the services performed by the bank due to the directorship of this officer.

 

Fair value of the Company’s debt approximates the carrying value.