|12 Months Ended|
Mar. 31, 2021
|Debt Disclosure [Abstract]|
Note 9 - Debt:
The Company and its subsidiaries had no short-term borrowings outstanding at March 31, 2021 and 2020.
On December 2, 2020, the Company entered into a revolving credit facility agreement with JPMorgan Chase Bank, N.A. that provides a $22,000 line of credit, expandable at the Company's option and upon the bank's approval at any time up to $37,000, including a $7,000 commitment for letters of credit and bank guarantees. The agreement has aterm.
At the Company's option, amounts outstanding under the agreement will bear interest at either: (i) a rate equal to the bank's prime rate; or (ii) a rate equal to LIBOR plus 1.75%. Amounts available for borrowing under the agreement are subject to an unused commitment fee of 0.375%. The bank’s prime rate was 3.25% at March 31, 2021 and 2020.
Outstanding letters of credit under the agreement are subject to a fee of 0.75%. The agreement requires the Company to secure outstanding letters of credit with cash and cash equivalents and investments. At March 31, 2021, all outstanding letters of credit were secured by a certificate of deposit. At March 31, 2021, there were $5,416 letters of credit outstanding on the JPMorgan Chase Bank, N.A. revolving credit facility. Availability under the line of credit was $16,584 at March 31, 2021.
Under the revolving credit facility, the Company covenants to maintain a maximum funded debt to earnings before interest expense, income taxes, depreciation and amortization ("EBITDA") ratio, as defined in such credit facility, of 3.5 to 1.0 and a minimum earnings before interest expense and income taxes ("EBIT") to interest ratio, as defined in such credit facility, of 4.0 to 1.0. The agreement also provides that the Company is permitted to pay dividends without limitation if it maintains a maximum funded debt to EBITDA ratio equal to or less than 2.0 to 1.0 and permits the Company to pay dividends in an amount equal to 25% of net income if it maintains a funded debt to EBITDA ratio of greater than 2.0 to 1.0. The Company was in compliance with all such provisions as of and for the years ended March 31, 2021 and 2020. Assets with a book value of $117,360 have been pledged to secure borrowings under the credit facility.
At March 31, 2020, the Company had an additional letter of credit facility agreement with HSBC Bank USA, N.A. to further support its international operations. The agreement provided a $10,000 line of credit to be used for the issuance of letters of credit. On May 1, 2020 and October 8, 2020, the Company entered into agreements to amend the letter of credit facility agreement and increase the letter of credit facility to $14,000 and $15,000, respectively. Under the current agreement, the Company incurs an annual facility fee of $5 and outstanding letters of credit are subject to a fee of between 0.75% and 0.85%, depending on the term of the letter of credit. Interest is payable on the principal amounts of unreimbursed letter of credit draws under the facility at a rate of 3% plus the bank’s prime rate. The bank’s prime rate was 3.25% at March 31, 2021. The Company's obligations under the agreement are secured by cash or certificates of deposit held with the bank. At March 31, 2021 there were $6,151 letters of credit outstanding, and availability under the letter of credit facility was $8,849.
The Company and its subsidiaries had long-term capital lease obligations outstanding as follows:
With the exception of capital leases, the Company has no long-term debt payment requirements over the next five years as of March 31, 2021.
No definition available.
The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.
Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef