Debt

12 Months Ended

Dec. 31, 2021

Debt Disclosure [Abstract]

Debt

6. Debt

Debt comprised the following at December 31, 2021 and 2020:

(In thousands)	Maturity Dates	December 31, 2021		December 31, 2020
Unsecured private placement notes
3.95% (net of unamortized debt issuance cost of $230 and     $273 for 2021 and 2020, respectively)	2022-2027	$	85,485	$	99,727
3.86% (net of unamortized debt issuance cost of 181 and     $236 for 2021 and 2020, respectively)	2022-2025		56,962		71,193
4.86% (net of unamortized debt issuance cost of $69 and     $108 for 2021 and 2020 respectively)	2022-2023		18,502		27,749
2.30% (net of unamortized debt issuance cost of $100 and     $0 for 2021 and 2020, respectively)	2024-2028		49,900		—
2.37% (net of unamortized debt issuance cost of $108 and     $0 for 2021 and 2020, respectively)	2024-2028		49,892		—
2.73% (net of unamortized debt issuance cost of $22 and     $0 for 2021 and 2020, respectively)	2025-2031		99,978		—
Debt of foreign subsidiaries
Unsecured bank debt, foreign currency	2022		2,861		—
Total debt		$	363,580	$	198,669
Less current maturities			40,718		37,857
Long-term debt		$	322,862	$	160,812

The Company’s long-term debt financing is currently comprised of certain unsecured private placement notes issued to insurance companies, totaling $360,719,000 as of December 31, 2021. 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 amortization of principal beginning four, five and six years after issuance. The Company will be required to make amortization payments on the currently outstanding notes from 2022 to 2031.

On June 10, 2021, the Company entered into the Prudential note purchase agreement pursuant to which it issued and sold $50,000,000 in aggregate principal amount of its Series 2021-A Notes. The Series 2021-A Notes bear interest at a fixed rate of 2.30%, with interest to be paid semi-annually and with equal annual principal payments beginning on June 10, 2024 and continuing through final maturity on June 10, 2028. On December 10, 2021, pursuant to the Prudential note purchase agreement, the Company issued and

sold $50,000,000 in aggregate principal amount of its Series 2021-D Notes. The Series 2021-D Notes bear interest at a fixed rate of 2.73%, with interest to be paid semi-annually and with equal annual principal payments beginning on December 10, 2025 and continuing through final maturity on December 10, 2031.

On June 10, 2021, the Company entered into the NYL note purchase agreement pursuant to which, on September 23, 2021, the Company issued and sold $50,000,000 in aggregate principal amount of its Series 2021-B Notes. The Series 2021-B Notes bear interest at a fixed rate of 2.37% with interest to be paid semi-annually and with equal annual principal payments beginning on September 23, 2024 and continuing through final maturity on September 23, 2028. On December 10, 2021, pursuant to the NYL note purchase agreement, the Company issued and sold $50,000,000 in aggregate principal amount of its Series 2021-C Notes. The Series 2021-C Notes bear interest at a fixed rate of 2.73% with interest to be paid semi-annually and with equal annual principal payments beginning on December 10, 2025 and continuing through final maturity on December 10, 2031.

The proceeds of the issuance of the Series 2021-A Notes, Series 2021-B Notes, Series 2021-C Notes and Series 2021-D Notes are being used for capital expenditures, to pay down existing debt and for other corporate purposes. The Prudential note purchase agreement and the NYL note purchase agreement require the maintenance of certain financial ratios, contain covenants that are substantially similar to the Company’s existing long-term debt and provide for customary events of default.

The Company has a committed $350,000,000 multi-currency revolving credit agreement that expires on January 30, 2023. 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, 2021, the Company had outstanding letters of credit totaling $6,720,000 and no outstanding borrowings under the revolving credit agreement. There was $343,280,000 available under the revolving credit agreement as of December 31, 2021.

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) LIBOR applicable to each currency plus spreads ranging from 1.25 percent to 1.875 percent, depending on the Company’s net leverage ratio, or (2) the prime rate plus 0.25 percent to 0.875 percent, depending on the Company’s net leverage ratio. The credit agreement requires the Company to pay a commitment fee ranging from 0.15 percent to 0.325 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 and leverage financial covenants and limitations on restricted payments, indebtedness and liens.

The Company’s foreign subsidiaries had $2,861,000 of unsecured debt at December 31, 2021.

The Company’s loan agreements contain provisions, which, among others, 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 $468,095,000 and $373,884,000 at December 31, 2021 and 2020, respectively.

Debt at December 31, 2021, matures as follows: $40,718,000 in 2022; $37,857,000 in 2023; $48,572,000 in 2024; $62,858,000 in 2025; $48,572,000 in 2026 and $125,713,000 after 2026. Debt maturing in 2022 includes $37,857,000 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 agreement entered into on January 30, 2018.

Net interest expense for the years ended December 31, 2021, 2020 and 2019, comprised the following:  

(In thousands)	2021			2020			2019
Interest expense	$	10,145		$	9,859		$	12,744
Interest income		(1,255	)		(2,171	)		(5,717	)
		8,890			7,688			7,027
Capitalized interest		(3,137	)		(2,279	)		(1,095	)
Interest expense, net	$	5,753		$	5,409		$	5,932