Borrowing Arrangements

12 Months Ended

Dec. 31, 2011

Borrowing Arrangements [Abstract]

BORROWING ARRANGEMENTS

5. BORROWING ARRANGEMENTS

Under the terms of an unsecured credit facility with Bank of the West, the Company has a $5 million line of credit available for general working capital needs, which includes a $5 million letter of credit sub-facility including a $2 million foreign exchange sub-facility. As of December 31, 2010, interest under the line of credit facility would accrue based on one of three interest rates, at the Company’s option: (1) a variable alternate base rate plus 1.00%, the alternate base rate being the greater of (x) Bank of the West’s prime rate, (y) the Fed Funds Rate plus 0.5% or (z) daily adjusted one-month LIBOR plus 1.00%; (2) floating one-month LIBOR plus 2.25% or (3) fixed LIBOR for one, two, three or six month periods, plus 2.25%.

On April 22, 2011, the expiration date of the line of credit was extended from April 30, 2011 to April 30, 2013. Interest rates under the amended agreement are based on one of three interest rates, at the Company’s option: (1) a variable alternate base rate plus 1.0%, the alternate base rate being the greater of (x) Bank of the West’s prime rate, (y) the Fed Funds Rate plus 0.5% or (z) daily adjusted one-month LIBOR plus 1.0%; (2) floating one-month LIBOR plus 2.0% or (3) fixed LIBOR for one, two, three or six month periods, plus 2.0%. As of December 31, 2011, the Company had no borrowings under the line of credit. The agreement includes certain restrictive covenants and, as of December 31, 2011, the Company was in compliance with such covenants.

The credit facility also includes a $15 million term loan facility to finance the repurchase of shares of the Company’s common stock. In May 2009, the Company borrowed $15 million under the term loan. Interest under the term loan facility was payable at a rate equal to floating one-month LIBOR plus 2.25%. Borrowings were payable over 21 equal monthly installments, which commenced on August 31, 2009. The final payment was made on May 31, 2011.

The following table summarizes the Company’s long-term debt (in thousands):

	December 31, 2011		December 31, 2010
Notes payable bearing variable interest at 1 month LIBOR plus 2.25%	$	0	$	2,857
Current portion		0		(2,857	)
Long-term debt	$	0	$	0

As of December 31, 2010, the estimated fair value of the Company’s notes payable was not materially different than its respective carrying value.