Credit Facilities and Restricted Cash

9 Months Ended

Sep. 27, 2015

Credit Facilities And Restricted Cash

Credit Facilities and Restricted Cash

CREDIT FACILITIES AND RESTRICTED CASH

Multibank Credit Agreement

We have a multibank credit agreement (the “Credit Agreement”), which provides for a $100.0 million secured revolving credit facility, including a $50.0 million subfacility for the issuance of letters of credit. The Credit Agreement expires in April 2016. We may, upon notice to JPMorgan Chase Bank, N.A., the Administrative Agent, request to increase the revolving loan commitments by an aggregate amount of up to $50.0 millionwith new or additional commitments subject only to the consent of the lender(s) providing the new or additional commitments, for a total secured credit facility of up to$150.0 million. As of September 27, 2015, there were no revolving loans or letters of credit outstanding under the Credit Agreement, we were in compliance with all covenants and we were not in default under the Credit Agreement.

Credit Facility

In July 2015, we entered into a credit facility agreement (the “Credit Facility”) with HSBC Bank plc (“HSBC”), whereby HSBC has provided us with a revocable, uncommitted credit facility up to an amount of 25.0 million euro. The purpose of this facility is to provide a more efficient means of issuing guarantees to our customers when required by contractual terms. Under the terms of the Credit Facility, when requested, HSBC will issue bank guarantees on behalf of the company and our affiliates. Issuance of the guarantee does not create a liability to the company unless it is called by the customer, at which point we would record a liability for the amount that is due under the guarantee to the bank. As of September 27, 2015, HSBC has issued $4.5 million in guarantees under the Credit Facility and we have no liabilities outstanding under the Credit Facility.

Restricted Cash

As part of our contracts with certain customers, we are required to provide letters of credit or bank guarantees which these customers can draw against in the event we do not perform in accordance with our contractual obligations. Bank guarantees and letters of credit outstanding as of September 27, 2015 were approximately $53.9 million. Restricted cash balances securing bank guarantees that expire within 12 months of the balance sheet date are recorded as a current asset on our consolidated balance sheets. Restricted cash balances securing bank guarantees that expire beyond 12 months from the balance sheet date are recorded as long-term restricted cash on our consolidated balance sheets.