Credit Facilities

12 Months Ended

Dec. 31, 2013

CREDIT FACILITIES

Long-term debt consisted of the following at December 31 (in thousands):



	December 31,
	2013		2012
Notes payable to banks under committed credit facilities	$	40,000	$	90,000
Less current portion	—		20,000
Long-term debt, net	$	40,000	$	70,000

As of December 31, 2013, we have committed credit facilities with two banks. These include a $175 million four-year credit facility which will expire on May 31, 2016 and a $75 million five-year credit facility which will expire on May 31, 2017. Borrowings under these credit facilities bear variable interest (0.85% at December 31, 2013) based on the London Interbank Offered Rate (“LIBOR”). As of December 31, 2013, we had $40 million outstanding under these credit facilities with banks. The $250 million of credit available under these facilities is further reduced by $32.7 million in standby letters of credit under which we are obligated. Each of the debt agreements includes, among other things, two financial covenants requiring us (i) not to exceed a maximum ratio of total debt to total capitalization and (ii) not to exceed a maximum ratio of total funded debt to earnings before interest, income taxes, depreciation and amortization (as such terms are defined in each credit facility). At December 31, 2013, we were in compliance with these covenants.

At December 31, 2013, the aggregate future maturities of long-term debt by year are as follows (in thousands):



2014	$	—
2015	—
2016	40,000
2017	—
Total	$	40,000

The carrying amounts of our long-term debt approximate fair value due to the duration of the notes and the variable interest rates.

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

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