Debt

9 Months Ended

Sep. 30, 2011

NOTE 8.

DEBT

In July 2011, we refinanced our existing $200 million unsecured short-term revolving credit facility by entering into a $300 million unsecured short-term revolving credit facility with three multinational banks that matures on July 25, 2016 (the "Credit Facility"). Though the Credit Facility does not mature until July 25, 2016, the entire balance due is shown in the current liabilities section in the accompanying condensed consolidated balance sheets because the Credit Facility contains a subjective material adverse event clause, which allows the debt holders to call the loans under the Credit Facility if we fail to notify the debt holder of such an event. Our availability under the Credit Facility was further reduced at September 30, 2011 and December 31, 2010 by $1.0 million for a letter of credit issued related to our workers'compensation policy covering claims originating in 2009 through 2011 calendar years. Applicable interest rates on borrowings under the Credit Facility generally range from 0.875 to 1.25 percentage points ("Credit Spread") above the London interbank rate ("LIBOR") or the Canadian Dollar-denominated bankers' acceptance rate ("CDOR"), dependent on our leverage ratio, or the prevailing prime rate plus a maximum spread of up to .25%, dependent on our leverage ratio. Under the Credit Facility, we pay quarterly commitment fees of .15% to .30%, dependent on our leverage ratio, on any unused commitment. The Credit Facility agreement contains financial and other affirmative and negative covenants, as well as customary events of default, that would allow any amounts outstanding under the Credit Facility to be accelerated, or restrict our ability to borrow thereunder, in the event of noncompliance. The single financial covenant requires our ratio of debt to earnings before interest, taxes, depreciation and amortization, defined as the consolidated leverage ratio under the terms of the Credit Facility, not to exceed 3-to-1. At September 30, 2011, we were in compliance with the covenants of the Credit Facility.

In 2009, we entered into two forward fixed interest rate swap agreements to manage the economic effect of variable interest obligations. Under these agreements, beginning on March 31, 2010 the variable interest rate associated with $80 million of borrowings outstanding under the Credit Facility became effectively fixed at 2% plus the Credit Spread through March 30, 2012. In August 2011, we entered into two additional forward fixed interest rate swap agreements for the same purpose. Under these agreements, beginning on March 30, 2012, the variable interest rate associated with $40 million of borrowings outstanding under the Credit Facility will become effectively fixed at 1.36% plus the Credit Spread through June 30, 2016 and beginning on March 28, 2013, the variable interest rate associated with $40 million of borrowings outstanding under the Credit Facility will become effectively fixed at 1.64% plus the Credit Spread through June 30, 2016. See Note 17 for a discussion of our derivative instruments and hedging activities.

At September 30, 2011, our remaining debt instrument is consistent with that discussed in Note 11 to the consolidated financial statements in our Annual Report on Form 10-K for the year ended December 31, 2010.