—Financing Arrangements

Debt consists of the following:



	October 31,
	2015		2014
Credit Agreement —interest at 4.44% and 2.15% at October 31, 2015 and October 31, 2014, respectively	$	293,300	$	260,500
Equipment security note	1,496		1,985
Capital lease obligations	5,434		6,967
Insurance broker financing agreement	723		568
Total debt	300,953		270,020
Less: Current debt	2,080		1,918
Total long-term debt	$	298,873	$	268,102

At October 31, 2015, the Company had total debt, excluding capital leases, of $295,519, consisting of a revolving line of credit under the Credit Agreement of floating rate debt of $293,300 and fixed rate debt of $2,219. The weighted average interest rate of all debt was 2.82% and 2.08% for fiscal years 2015 and 2014, respectively.

The Company and its subsidiaries are party to a Credit Agreement, dated October 25, 2013 (the "Credit Agreement"), with Bank of America, N.A., as Administrative Agent, Swing Line Lender, Dutch Swing Line Lender and L/C Issuer, JPMorgan Chase Bank, N.A. as Syndication Agent, Merrill Lynch, Pierce, Fenner & Smith Incorporated and J.P. Morgan Securities, LLC as Joint Lead Arrangers and Joint Book Managers, The PrivateBank and Trust Company, Compass Bank and Citizens Bank, N.A., as Co-Documentation Agents, and the other lender parties thereto.

On October 30, 2015, the Company executed a Fifth Amendment (the "Fifth Amendment") to the Credit Agreement that increases the permitted leverage ratio with periodic reductions beginning after July 30, 2016. In addition, the Fifth Amendment reduces various cumulative baskets, provides a new basket for certain investments in China, and permits the Company to issue up to $40,000 aggregate outstanding principal amount of subordinated indebtedness, subject to certain conditions. Finally, the Fifth Amendment provides for a consolidated fixed charge coverage ratio, and provides for up to $50,000 of capital expenditures by the Company and its subsidiaries throughout the year ending October 31, 2016, subject to certain quarterly baskets.

On April 29, 2015, the Company executed a Fourth Amendment to the Credit Agreement that allows for an incremental increase of $25,000 (or if certain ratios are met, $100,000) in the existing revolving commitments of $360,000, subject to the Company's pro forma compliance with financial covenants, the administrative agent's approval, and the Company obtaining commitments for such increase.

The Fourth Amendment includes scheduled commitment reductions beginning after January 30, 2016 as well as scheduled commitment reductions totaling $30,000, allocated proportionately between the Aggregate Revolving A and B commitments.

Borrowings under the Credit Agreement bear interest, at the Company's option, at LIBOR or the base (or "prime") rate established from time to time by the administrative agent, in each case plus an applicable margin. The Fifth Amendment provides for an interest rate margin on LIBOR loans of 1.5% to 4.0% and on base rate loans of 0.50% to 3.0%, depending on the Company's leverage ratio.

The Credit Agreement contains customary restrictive and financial covenants, including covenants regarding the Company’s outstanding indebtedness and maximum leverage and interest coverage ratios. The Credit Agreement also contains standard provisions relating to conditions of borrowing. In addition, the Credit Agreement contains customary events of default, including the non-payment of obligations by the Company and the bankruptcy of the Company. If an event of default occurs, all amounts outstanding under the Credit Agreement may be accelerated and become immediately due and payable. The Company was in compliance with the financial covenants as of October 31, 2015 and October 31, 2014.

After considering letters of credit of $4,230 that the Company has issued, unused commitments under the Credit Agreement was $62,470 at October 31, 2015.

Borrowings under the Agreement are collateralized by a first priority security interest in substantially all of the tangible and intangible property of the Company and its domestic subsidiaries and 65% of the stock of foreign subsidiaries.

Other Debt:

On August 3, 2015, the Company entered into a finance agreement with an insurance broker for various insurance policies that bears interest at a fixed rate of 1.95% and requires monthly payments of $104 through May 2016. As of October 31, 2015, $723 of principal remained outstanding under this agreement and was classified as current debt in the Company’s consolidated balance sheets.

On September 2, 2013, the Company entered into an equipment security note that bears interest at a fixed rate of 2.47% and requires monthly payments of $44 through September 2018. As of October 31, 2015, $1,496 of principal remained outstanding under this agreement and $501 was classified as current debt and $995 was classified as long term debt in the Company’s consolidated balance sheets.

The Company maintains capital leases for equipment used in its manufacturing facilities with lease terms expiring between 2018 and 2021. As of October 31, 2015, the present value of minimum lease payments under its capital leases amounted to $5,434.

Derivatives:

On February 25, 2014, the Company entered into an interest rate swap with an aggregate notional amount of $75,000 designated as a cash flow hedge to manage interest rate exposure on the Company’s floating rate LIBOR based debt under the Credit Agreement. The interest rate swap is an agreement to exchange payment streams based on the notional principal amount. This agreement fixes the Company’s future interest payments at 2.74% plus the applicable rate (as described above), on an amount of the Company’s debt principal equal to the then-outstanding swap notional amount. The forward interest rate swap commenced on March 1, 2015 with an initial $25,000 base notional amount. The second notional amount of $25,000 commenced on September 1, 2015 with the final notional amount to commence on March 1, 2016. The base notional amount plus each incremental addition to the base notional amount have a five year maturity of February 29, 2020, August 31, 2020 and February 28, 2021, respectively. On the date the interest swap was entered into, the Company designated the interest rate swap as a hedge of the variability of cash flows to be paid relative to its variable rate monies borrowed. Any ineffectiveness in the hedging relationship is recognized immediately into earnings. The Company determined the mark-to-market adjustment for the interest rate swap to be a loss of $1,618, net of tax, for the fiscal year ended October 31, 2015 and $1,558, net of tax, for the fiscal year ended October 31, 2014, which is reflected in other comprehensive loss. The first and second base notional amounts of $25,000 each or $50,000 total that commenced during 2015 resulted in realized losses of $433 of interest expense related to the interest rate swap settlements.

Scheduled repayments under the terms of the Credit Agreement and repayments of other debt are listed below:



Twelve Months Ending October 31,	Credit Agreement		Equipment Security Note		Capital Lease Obligations		Other Debt		Total

2016	$	—	$	501	$	856	$	723	$	2,080
2017	—		513		872		—		1,385
2018	—		482		888		—		1,370
2019	293,300		—		617		—		293,917
2020	—		—		393		—		393
Thereafter	—		—		1,808		—		1,808
Total	$	293,300	$	1,496	$	5,434	$	723	$	300,953