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Credit Arrangements
6 Months Ended
Dec. 31, 2014
Credit Arrangements [Abstract]  
Credit Arrangements

4.   CREDIT ARRANGEMENTS

 

The Company maintained a credit agreement which provided short-term working capital financing up to $25.0 million with interest of LIBOR plus 1%  (1.1713% at December 31, 2014), including up to $4.0 million of letters of credit.  Letters of credit outstanding at December 31, 2014 totaled $2.9 million.  The Company utilized $9.5 million of borrowing availability under the credit facility during the period, which is classified as “Notes Payable” in the Consolidated Balance Sheets, Long-Term Liabilities, in addition to the aforementioned letters of credit, leaving borrowing availability of $12.6 million.  The credit agreement was to expire June 30, 2016.  At December 31, 2014, the Company was in compliance with all of the financial covenants contained in the credit agreement.  See Note 8. Subsequent Events.

 

An officer of the Company is a director at a bank where the Company maintained an additional unsecured $8.0 million line of credit, with interest at prime minus 2% (1.25% at December 31, 2014), and where its routine banking transactions are processed. The Company utilized borrowing availability during the period and $6.5 million was outstanding on the line of credit at December 31, 2014, which is classified as “Notes Payable” in the Consolidated Balance Sheets, Current Liabilities. The credit agreement was to expire February 13, 2015.  See Note 8. Subsequent Events.  In addition, the Supplemental Plan assets, held in a Rabbi Trust, of $4.1 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.