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Short-Term Borrowings and Credit Lines
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12 Months Ended |
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Dec. 31, 2012
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| Debt Disclosure [Abstract] | |
| Short-Term Borrowings and Credit Lines |
SHORT-TERM BORROWINGS AND CREDIT LINES
The Company has a domestic credit agreement for an unsecured, committed $125,000,000 revolving line of credit. The maturity date of this agreement is July 1, 2016. Interest, payable monthly, is based on the Company’s applicable funded debt ratio, ranging from LIBOR plus 100 to 175 basis points. This line of credit requires the Company to comply with certain financial covenants covering net income, tangible net worth and borrowing basis. If the Company is in default, it is prohibited from paying dividends or repurchasing common stock. At December 31, 2012, the Company was in compliance with all associated covenants. At December 31, 2012 and 2011, no balance was outstanding under this line of credit.
The Company’s Canadian subsidiary has available an unsecured and uncommitted line of credit guaranteed by the parent company providing for borrowing up to a maximum of C$30,000,000 (US$30,239,000) at December 31, 2012. The revolving line accrues interest at the bank’s Canadian prime rate. At December 31, 2012, $156,000 was outstanding under this line of credit. At December 31, 2011, there was no balance outstanding under this line.
The Company’s European subsidiary has available two separate unsecured and uncommitted lines of credit guaranteed by the parent company providing for borrowing up to a maximum of €25,800,000 and €5,000,000, respectively (combined US$40,633,000) at December 31, 2012, of which US$3,694,000 of the €5,000,000 line is designated as a European customs guarantee. These lines accrue interest based on the European Central Bank refinancing rate plus 50 basis points and Euro Overnight Index Average plus 75 basis points, respectively. There was no balance outstanding under either line at December 31, 2012 or 2011.
The Company’s Japanese subsidiary has an unsecured and uncommitted line of credit guaranteed by the parent company providing for borrowing up to a maximum of US$5,000,000 at December 31, 2012. The revolving line accrues interest at LIBOR plus 110 basis points. There was no balance outstanding under this line at December 31, 2012 or 2011.
On September 27, 2012, the Company’s Korean subsidiary increased the maximum borrowing permitted under its unsecured and uncommitted line of credit agreement to US$30,000,000. The revolving line accrues interest at the Korean three-month CD rate plus 220 basis points. There was no balance outstanding under this line at December 31, 2012 or 2011.
Off-Balance Sheet Arrangements
The Company has arrangements in place to facilitate the import and purchase of inventory through import letters of credit. The Company has available unsecured and uncommitted import letters of credit in the aggregate amount of $5,000,000 subject to annual renewal. At December 31, 2012, no balance was outstanding under these letters of credit.
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