Avid 2014 Annual Report Download - page 92

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86
The following table presents the Company’s long-lived assets, excluding intangible assets, by geography at December 31, 2014 and
2013 (in thousands):
December 31,
2014 2013
Long-lived assets:
United States $ 30,465 $ 33,193
Other countries 3,945 4,385
Total long-lived assets $ 34,410 $ 37,578
Q. CREDIT AGREEMENT
On October 1, 2010, Avid Technology, Inc. and certain of its subsidiaries (the “Borrowers”) entered into a credit agreement with Wells
Fargo that established two revolving credit facilities with combined maximum availability of up to $60 million for borrowings and
letter of credit guarantees (the “Credit Agreement”). The actual amount of credit available to the Borrowers will vary depending upon
changes in the level of the respective accounts receivable and inventory, and is subject to other terms and conditions that are more
specifically described in the Credit Agreement. On August 29, 2014, the Company entered into an amendment to its Credit Agreement
with Wells Fargo that extended the maturity date for the credit facilities from October 1, 2014 to October 1, 2015.
The amended Credit Agreement contains customary representations and warranties, covenants, mandatory prepayments, and events of
default under which the Borrowers’ payment obligations may be accelerated, including guarantees and liens on substantially all of the
Borrowers’ assets to secure their obligations under the Credit Agreement. The Credit Agreement prohibits the Company from
declaring or paying any cash dividends. The Credit Agreement requires that Avid Technology, Inc. (“Avid Technology”) maintain
liquidity (comprised of unused availability under its portion of the credit facilities plus certain unrestricted cash and cash equivalents)
of $10.0 million, at least $5.0 million of which must be from unused availability under its portion of the credit facilities. In addition,
its subsidiary, Avid Technology International B.V. (“Avid Europe”), is required to maintain liquidity (comprised of unused availability
under Avid Europe’s portion of the credit facilities plus certain unrestricted cash and cash equivalents) of $5.0 million, at least $2.5
million of which must be from unused availability under Avid Europe’s portion of the credit facilities. Interest accrues on outstanding
borrowings under the credit facilities at a rate of either LIBOR plus 2.75% or a base rate (as defined in the Credit Agreement) plus
1.75%, at the option of Avid Technology or Avid Europe, as applicable. The Borrowers must also pay Wells Fargo a monthly unused
line fee at a rate of 0.625% per annum. Any borrowings under the Credit Agreement are secured by a lien on substantially all the
Borrowers’ assets.
At December 31, 2014, the Company had certain reserves and letters of credit guaranteed under the credit facilities of $3.0 million and
$0.8 million, respectively. At December 31, 2014, the Company had available borrowings under the credit facilities of $29.3 million,
after taking into consideration the outstanding letters of credit and related liquidity covenant. At December 31, 2014, the Company
had no outstanding borrowings under the Credit Agreement.