Debt

12 Months Ended

Dec. 31, 2022

Debt Disclosure [Abstract]

Debt

6. Debt

At December 31, 2022 and 2021, debt was comprised of the following:

(In thousands)	Maturity Dates	December 31, 2022		December 31, 2021
Senior unsecured notes
3.95% (net of unamortized debt issuance cost of $186 and     $230 for 2022 and 2021, respectively)	2023-2027	$	71,243	$	85,485
3.86% (net of unamortized debt issuance cost of $125 and     $181 for 2022 and 2021, respectively)	2023-2025		42,732		56,962
4.86% (net of unamortized debt issuance cost of $30 and     $69 for 2022 and 2021 respectively)	2023		9,260		18,502
2.30% (net of unamortized debt issuance cost of $122 and     $100 for 2022 and 2021, respectively)	2024-2028		49,878		49,900
2.37% (net of unamortized debt issuance cost of $128 and     $108 for 2022 and 2021, respectively)	2024-2028		49,872		49,892
2.73% (net of unamortized debt issuance cost of $55 and     $22 for 2022 and 2021, respectively)	2025-2031		99,945		99,978
2.83% (net of unamortized debt issuance cost of $40 and     $0 for 2022 and 2021, respectively)	2026-2032		74,960		—
Revolving credit facility and term loan borrowing	2023-2027		189,250		—
Debt of foreign subsidiaries
Unsecured bank debt, foreign currency	2023		—		2,861
Total debt		$	587,140	$	363,580
Less current maturities			132,111		40,718
Long-term debt		$	455,029	$	322,862

The Company’s long-term debt financing is currently comprised of certain senior unsecured notes issued to insurance companies in private placement transactions, totaling $397,890,000 as of December 31, 2022. These notes are denominated in U.S. dollars and have fixed interest rates ranging from 2.30 percent to 4.86 percent. The notes had original maturities of seven to 12 years with mandatory principal payments beginning four, five and six years after issuance. The Company will be required to make principal payments on the currently outstanding notes from 2023 to 2032.

On March 1, 2022, pursuant to a note purchase and master note agreement dated as of June 10, 2021 (the NYL note purchase agreement), the Company issued and sold $25,000,000 in aggregate principal amount of its 2.83% Senior Notes, Series 2022-A, due March 1, 2032 (the Series 2022-A Notes). In addition, on March 1, 2022, pursuant to a note purchase and private shelf agreement dated as of June 10, 2021 (the Prudential note purchase agreement), the Company issued and sold $50,000,000 in aggregate principal amount of its 2.83% Senior Notes, Series 2022-B, due March 1, 2032 (the Series 2022-B Notes). The Series 2022-A Notes and the Series 2022-B Notes bear interest at a fixed rate of 2.83%, with interest to be paid semi-annually and with equal annual principal payments beginning on March 1, 2026 and continuing through final maturity on March 1, 2032. The proceeds of the issuance of the Series 2022-A Notes and the Series 2022-B Notes are being used primarily for capital expenditures, to pay down existing debt and for other corporate purposes. The NYL note purchase agreement and the Prudential note purchase agreement require the maintenance of certain financial ratios and covenants that are substantially similar to the Company’s existing long-term debt and provide for customary events of default.

On June 24, 2022, the Company entered into a credit agreement with a syndicate of banks. The credit agreement provides for credit facilities in an initial aggregate principal amount of $450,000,000, consisting of (a) a $350,000,000 multi-currency revolving credit facility and (b) a $100,000,000 delayed draw term loan credit facility, each of which matures on June 24, 2027. This credit agreement replaced the Company’s prior $350,000,000 revolving credit agreement. The Company maintains import letters of credit, and standby letters of credit under its workers’ compensation insurance agreements and for other purposes, as needed from time to time, which are issued under the revolving credit agreement. As of December 31, 2022, the Company had outstanding letters of credit totaling $10,870,000 and $189,250,000 of outstanding borrowings under the credit agreement, inclusive of a $98,750,000 delayed-draw term loan. There was $249,880,000 available under the credit agreement as of December 31, 2022.

Loans under the credit agreement may be incurred, at the discretion of the Company, with terms to maturity of one month, three months or six months. The Company may choose from two interest rate options: (1) Adjusted Term Secured Overnight Financing

Rate (SOFR) applicable to USD loans and relevant benchmark rates applicable to EUR, GBP and CAD loans plus spreads ranging from 1.125 percent to 1.750 percent, depending on the Company’s net leverage ratio, or (2) the prime rate plus 0.125 percent to 0.750 percent, depending on the Company’s net leverage ratio. The credit agreement requires the Company to pay a commitment fee ranging from 0.125 percent to 0.250 percent per annum, which also depends on the Company’s net leverage ratio. The credit agreement requires the maintenance of certain financial ratios and compliance with certain other covenants that are similar to the Company’s existing debt agreements, including net worth, interest coverage, leverage financial covenants and limitations on restricted payments, indebtedness and liens.

The Company’s foreign subsidiaries had no debt at December 31, 2022.

The Company’s material debt agreements contain provisions which, among other covenants, require maintenance of certain financial ratios and place limitations on additional debt, investments and payment of dividends. Based on the loan agreement provisions that place limitations on dividend payments, unrestricted retained earnings (i.e., retained earnings available for dividend distribution) were $224,189,000 and $468,095,000 at December 31, 2022 and 2021, respectively.

Debt at December 31, 2022, matures as follows: $132,111,000 in 2023; $53,572,000 in 2024; $69,108,000 in 2025; $66,786,000 in 2026; $135,535,000 in 2027 and $130,714,000 after 2027. Debt maturing in 2023 includes $41,608,000 of scheduled repayments under long-term debt agreements. The Company’s foreign subsidiaries routinely have short-term working capital loans. These short-term loan agreements could be supplemented, if necessary, by the Company’s $350,000,000 revolving credit facility entered into on June 24, 2022.

Net interest expense for the years ended December 31, 2022, 2021 and 2020, comprised the following:

(In thousands)	2022			2021			2020
Interest expense	$	17,852		$	10,145		$	9,859
Interest income		(1,080	)		(1,255	)		(2,171	)
		16,772			8,890			7,688
Capitalized interest		(6,963	)		(3,137	)		(2,279	)
Interest expense, net	$	9,809		$	5,753		$	5,409