XML 20 R10.htm IDEA: XBRL DOCUMENT v3.3.1.900
Credit Arrangements
6 Months Ended
Dec. 31, 2015
Credit Arrangements [Abstract]  
Credit Arrangements

4.   CREDIT ARRANGEMENTS

 

The Company maintains  a credit agreement which provides unsecured short-term working capital financing up to $30.0 million with interest of LIBOR plus 1%  (1.43% at December 31, 2015), including up to $4.0 million of letters of credit.  Letters of credit outstanding at December 31, 2015 totaled $2.3 million.  At December 31, 2015, outstanding borrowings were $5.6 million, which is classified as “notes payable – current” in the Consolidated Balance Sheets, in addition to the aforementioned letters of credit, leaving borrowing availability of $22.1 million.  The credit agreement expires December 31, 2016.  At December 31, 2015, the Company was in compliance with all of the financial covenants contained in the credit agreement.

 

A director of the Company is a director at a bank where the Company maintains an additional unsecured $10.0 million line of credit, with interest at prime minus 2% (1.50% December 31, 2015), and where its routine banking transactions are processed. As of December 31, 2015, $0.3 million was outstanding on the line of credit. This line of credit matures December 31, 2016.  In addition, the Supplemental Plan assets, held in a Rabbi Trust, of $3.4 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 director.

 

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