Page 31 - 2019 Annual Report

NOTES TO FINANCIAL STATEMENTS (continued)

as of the end of any fiscal quarter, provided that the Company may exclude from the Ratio debt incurred in connection with
certain acquisitions during the quarter or three preceding quarters so long as the Ratio calculated without such exclusion does
not exceed 3.75x. Additionally, if no amounts are outstanding under both the Revolving Facility and the trade receivable
securitization facility (discussed later), consolidated debt, including debt for which the Company is a co‐borrower (see Note O),
may be reduced by the Company’s unrestricted cash and cash equivalents in excess of $50.0 million, such reduction
not to exceed $200.0 million, for purposes of the covenant calculation. The Company was in compliance with the Ratio at
December 31, 2019.
On December 5, 2019, the Company extended its Revolving Facility by one year. The Revolving Facility expires on December 5,
2024, with any outstanding principal amounts, together with interest accrued thereon, due in full on that date. Available
borrowings under the Revolving Facility are reduced by any outstanding letters of credit issued by the Company under the
Revolving Facility. At December 31, 2019 and 2018, the Company had $2.3 million of outstanding letters of credit issued under
the Revolving Facility and $697.7 million available for borrowing under the Revolving Facility. The Company paid the bank group
an upfront loan commitment fee that is being amortized over the life of the Revolving Facility. The Revolving Facility includes
an annual facility fee.

The Company, through a wholly‐owned special‐purpose subsidiary, has a $400.0 million trade receivable securitization facility
(the “Trade Receivable Facility”). On September 24, 2019, the Company extended the maturity to September 23, 2020. The
Trade Receivable Facility, with Truist Bank, Regions Bank, PNC Bank, N.A., The Bank of Tokyo‐Mitsubishi UFJ, Ltd., New York
Branch, and certain other lenders that may become a party to the facility from time to time, is backed by eligible trade
receivables, as defined. Borrowings are limited to the lesser of the facility limit or the borrowing base, as defined. These
receivables are originated by the Company and then sold or contributed to the wholly‐owned special‐purpose subsidiary. The
Company continues to be responsible for the servicing and administration of the receivables purchased by the wholly‐owned
special‐purpose subsidiary. Borrowings under the Trade Receivable Facility bear interest at a rate equal to one‐month LIBOR
plus 0.725%, subject to change in the event that this rate no longer reflects the lender’s cost of lending. The Trade Receivable
Facility contains a cross‐default provision to the Company’s other debt agreements.

The Company’s long‐term debt maturities for the five years following December 31, 2019, and thereafter are:

(in millions)
2020 $ 340.0
2021 0.1
2022 0.1
2023 —
2024 696.7
Thereafter 1,736.7
Total $ 2,773.6

The 2020 Floating Rate Notes mature on May 22, 2020. The Company has classified these obligations as noncurrent long‐term
debt on the consolidated balance sheet as of December 31, 2019 as it has the ability and intent to refinance the notes on a
long‐term basis. For the debt maturity schedule, the 2020 Floating Rate Notes are included in 2024.
The Company has a $5.0 million short‐term line of credit. No amounts were outstanding under this line of credit at December 31,
2019 or 2018.
Note I: Financial Instruments

The Company’s financial instruments include temporary cash investments, accounts receivable, notes receivable, accounts
payable, publicly‐registered long‐term notes, debentures and other long‐term debt.
Temporary cash investments are placed primarily in money market funds, money market demand deposit accounts or offshore
time deposit accounts with financial institutions. The Company’s cash equivalents have maturities of less than three months.
Due to the short maturity of these investments, they are carried on the consolidated balance sheets at cost, which
approximates fair value.
Accounts receivable are due from a large number of customers, primarily in the construction industry, and are dispersed across
wide geographic and economic regions. However, accounts receivable are more heavily concentrated in certain states, namely

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