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Table of Contents
of the financial covenant since obtaining the waiver in February 2008. Had the Company entered into a trigger period, as a result of excess
availability falling below the limits allowed under the Loan Agreement, the Company would have been in default for failing to meet the financial
covenant during most of 2008.
On March 10, 2009, the Company entered into a Fifth Amendment of the Loan Agreement, whereby the financial covenant was revised: (i) to
state specific cumulative EBITDA measurements, with adjustment for specified charges, based on actual results for the month of December 2008
and subsequent forecast monthly results through November 2009; and (ii) to reduce the minimum excess availability requirements to avoid a
trigger period. As a result of the Fifth Amendment, effective March 10, 2009, the Company’s excess availability may not fall below $10.0
million for three consecutive days or $8.0 million at any time. Such amounts may be further reduced to $7.0 million for three consecutive days or
$5.0 million at any time, during a period in which the Company has filed for, and is awaiting receipt of, a U.S. federal income tax refund in
excess of $10.0 million. In March 2009, the Company intends to file an amended U.S. federal income tax return for the tax year ended December
31, 2006, requesting a refund of approximately $11.2 million.
At December 31, 2008, the Company had borrowings of $17.9 million outstanding under the Loan Agreement and unused, but available,
borrowing capacity of $15 million. At December 31, 2008 and 2007, the Company had $6.7 million and $2.9 million, respectively, in standby
letters of credit which reduce the balance available under the Loan Agreement.
10. INCOME TAXES
Components of the Company’s income (loss) from continuing operations before income taxes were as follows:
The income tax expense (benefit) from continuing operations consisted of the following:
56
Year Ended December 31,
(In thousands)
2008
2007
2006
United States
$
(79,936
)
$
(74,077
)
$
32,163
Non
-
U.S.
(8,773
)
2,049
1,853
$
(88,709
)
$
(72,028
)
$
34,016
Year Ended December 31,
(In thousands)
2008
2007
2006
Current:
U.S. federal
$
(10,376
)
$
(8,481
)
$
9,847
U.S. state
(358
)
(656
)
(2,438
)
Non
-
U.S.
549
1,183
1,227
Total current
(10,185
)
(7,954
)
8,636
Deferred:
U.S. federal
11,324
(16,837
)
1,020
U.S. state
2,922
(1,636
)
(154
)
Non
-
U.S
229
211
(406
)
Total deferred
14,475
(18,262
)
460
$
4,290
$
(26,216
)
$
9,096