Forward-looking statements are not guarantees of performance. They involve risks, uncertainties, and assumptions. Our future results of operations may differ materially from those expressed in the forward-looking statements. Many of the important factors that will determine these results and values are beyond our ability to control or predict. You should not put undue reliance on any forward-looking statements. We undertake no obligation to publicly update any forward-looking statement, whether as a result of new information, future events, or otherwise. For a discussion of important factors that may cause our actual results to differ materially from those suggested by the forward-looking statements, you should read carefully the section captioned "Risk Factors" in Part I, Item 1A, of this Report.

Our continuing operations are comprised of two reportable operating segments, Papermaking Systems and Wood Processing Systems, and a separate product line, Fiber-based Products. Through our Papermaking Systems segment, we develop, manufacture, and market a range of equipment and products for the global papermaking, paper recycling, and other process industries. Through our Wood Processing Systems segment, we design, manufacture, and market stranders and related equipment used in the production of OSB and sell debarking and wood chipping equipment used in the forest products and the pulp and paper industries. Through our Fiber-based Products business, we manufacture and sell granules derived from pulp fiber for use as carriers for agricultural, home lawn and garden, and professional lawn, turf and ornamental applications, as well as for oil and grease absorption.

Our research and development expenses were $6.7 million, $6.2 million, and $6.7 million in 2015*, 2014, and $6.0 million in 2014, 2013, and 2012, respectively.

The primary raw materials used in our Wood Processing Systems segment are steel and stainless steel, which have generally been available through a number of suppliers.

The raw material used in the manufacture of our fiber-based granules is a by-product from the production of paper whichthat we obtain from two paper mills. If the mills were unable or unwilling to supply us sufficient fiber, we would be forced to find one or more alternative suppliers for this raw material.

Financial information about exports by domestic operations and about foreign operations is summarized in Note 1211 to the consolidated financial statements, which begin on page F-1 of this Report.

Mr. Painter has been our chief executive officer and a director since January 2010 and our president since September 1, 2009. Between 1997 and September 2009, Mr. Painter served as an executive vice president and from March 2007 through September 2009 had supervisory responsibility for our stock-preparation and fiber-based products businesses. He served as president of our composite building products business from 2001 until its sale in 2005. He also served as our treasurer and the treasurer of Thermo Electron from 1994 until 1997. Prior to 1994, Mr. Painter held various managerial positions with us and Thermo Electron.

Mr. Langevin has been an executive vice president and our chief operating officer since January 2010. Prior to January 2010, Mr. Langevin had been a senior vice president since March 2007 and had supervisory responsibility for our paperline business, consisting of our Fluid-Handling and our Doctoring, Cleaning, & Filtration product lines. He served as vice president, with responsibility for our Doctoring, Cleaning, & Filtration product lines, from 2006 to 2007. From 2001 to 2006, Mr. Langevin was president of Kadant Web Systems Inc. (now our Kadant Solutions division) and before that served as its senior vice president and vice president of operations. Prior to 2001, Mr. Langevin managed several product groups and departments within Kadant Web Systems after joining us in 1986 as a product development engineer.

Mr. O'Brien has been an executive vice president since 1998 and our chief financial officer since 2001. He served as our treasurer from 2001 to February 2005 and also as vice president, finance, from 1991 to 1998. Prior to joining us, Mr. O'Brien held various finance positions at Racal Interlan, Inc., Prime Computer, Compugraphic Corporation, and the General Electric Company. The Company has announced that Mr. O'Brien will retire on June 30, 2015.

Ms. Lambert has been a vice president and our general counsel since 2001, and our secretary since our incorporation in 1991. Prior to joining us, she was a vice president and the secretary of Thermo Electron from 1999 and 1990, respectively, to 2001 and before that was a member of Thermo Electron's legal department.

Mr. McKenneyMs. Selwood has been oura vice president finance and our chief accounting officer since January 2002 andJune 2015. She served as our corporate controller from 19972007 to 2015 and as assistant controller from 2004 to 2007. Mr. McKenney was controller of our Kadant AES division (now part of our Kadant Solutions division) from 1993 to 1997. Prior to 1993, Mr. McKenney2004, Ms. Selwood held various financial positions at Albany International Corp.Arthur Andersen LLP and Genuity Inc.

In addition, orders from customers in China, particularly for large stock-preparation systems that have been tailored to a customer's specific requirements, have credit risks higher than we generally incur elsewhere, and some orders are subject to the receipt of financing approvals from the Chinese government or can be impacted by the availability of credit and more restrictive monetary policies. For this reason,example, we reversed a booking of $16 million in the fourth quarter of 2015 due to uncertainty regarding financing for a project in China. We generally do not record bookings for signed contracts from customers in China for large stock-preparation systems as orders until we receive the down payments for such contracts. The timing of the receipt of these orders and the down payments are uncertain and there is no assurance that we will be able to recognize revenue on these contracts. Delays in the receipt of payments and letters of credit affect when revenues can be recognized on these contracts, making it difficult to accurately forecast our future financial performance. We may experience a loss if a contract is canceled prior to the receipt of a down payment if we have commenced engineering or other work associated with the contract. We typically have inventory awaiting shipment to customers. We could incur a loss if contracts are canceled and we cannot re-sell the equipment. In addition, we may experience a loss if the contract is canceled, or the customer does not fulfill its obligations under the contract, prior to the receipt of a letter of credit or final payments covering the remaining balance of the contract, which could represent 80% or more of the total order.

A significant portion of our revenue in China is recognized upon shipment once we have secured final payment. In some cases, we will be unable to recognize any revenue on completed orders until after installation or acceptance of the equipment.

We rely on suppliers to secure commodity and component products required for the manufacture of our products. A disruption in deliveries to or from suppliers or decreased availability of such components or commodities could have an adverse effect on our ability to meet our commitments to customers or increase our operating costs. We believe our sources of raw materials and component products will generally be sufficient for our needs in the foreseeable future. However, our operating results could be negatively impacted if supply is insufficient for our operations.

The raw material used in the manufacture of our fiber-based granules is obtained from two paper mills. Although we believe that our relationships with the mills are good, the mills may not continue to supply sufficient raw material. From time to time, we have experienced some difficulty in obtaining sufficient raw material to operate at optimal production levels. We continue to work with the mills to ensure a stable supply of raw material. To date, we have been able to meet all of our customer delivery requirements, but there can be no assurance that we will be able to meet future delivery requirements. If the mills were to be unable or unwilling to supply us sufficient fiber, we would be forced to find one or more alternative suppliers for this raw material.

Any acquisition we complete may be made at a substantial premium over the fair value of the net identifiable assets of the acquired business. We are required to assess the realizability of goodwill and indefinite-lived intangible assets annually as well asand whenever events or changes in circumstances indicate that these assets may be impaired. These events or circumstances would generally include operating losses or a significant decline in earnings associated with the acquired business or asset, and our ability to realize the value of goodwill and indefinite-lived intangible assets will depend on the future cash flows of these businesses. We may incur impairment charges to write down the value of our goodwill and acquired intangible assets in the future if the assets are not deemed recoverable, which could have a material adverse effect on our operating results.

Our ability to satisfy our obligations and to reduce our total debt depends on our future operating performance and on economic, financial, competitive, and other factors beyond our control. Our business may not generate sufficient cash flows to meet these obligations or to successfully execute our business strategy. The 2012 Credit Agreement includes certain financial covenants, and our failure to comply with these covenants could result in an event of default under the 2012 Credit Agreement, the swap agreement,agreements, and our other credit facilities, and would have significant negative consequences for our current operations and our future ability to fund our operations and grow our business. If we were unable to service our debt and fund our business, we could be forced to reduce or delay capital expenditures or research and development expenditures, seek additional financing or equity capital, restructure or refinance our debt, curtail or eliminate our cash dividend to stockholders, or sell assets.

Furthermore, our 2012 Credit Agreement requires that any amounts borrowed under the facility be repaid by the maturity date in 2018. If we are unable to roll over the amounts borrowed into a new credit facility and we do not have sufficient cash in the United StatesU.S. to repay our borrowings, we may need to repatriate cash from our overseas operations to fund the repayment and we would be required to pay taxes on the repatriated amounts. Such repatriation would have an adverse effect on our effective tax rate and cash flows.

We seek to protect trade secrets and proprietary know-how, in part, through confidentiality and noncompetitionnon-competition agreements with our collaborators, employees, and consultants. These agreements may be breached, we may not have adequate remedies for any breach, and our trade secrets may otherwise become known or be independently developed by our competitors, or our competitors may otherwise gain access to our intellectual property.

We could incur substantial costs to defend ourselves in suits brought against us, including for alleged infringement of third partythird-party rights, or in suits in which we may assert our intellectual property or contractual rights against others. An unfavorable outcome of any such litigation could have a material adverse effect on our business and results of operations.

The following table sets forth the high and low sales prices of our common stock for 20142015 and 2013,2014, as reported in the consolidated transaction reporting system.

On March 9, 2015,8, 2016, our board of directors raised our quarterly cash dividend to $0.17$0.19 per share and we expect to pay comparable cash dividends in the future. Nonetheless, the payment of dividends in the future will be at the discretion of the board of directors and will depend upon among other factors, our earnings, capital requirements, and financial condition.condition, among other factors. The payment of cash dividends is subject to our compliance with the consolidated leverage ratio contained in our 2012 Credit Agreement.

Our continuing operations are comprised of two reportable operating segments: Papermaking Systems and Wood Processing Systems, and a separate product line, Fiber-based Products. Through our Papermaking Systems segment, we develop, manufacture, and market a range of equipment and products for the global papermaking, paper recycling, and other process industries. Through our Wood Processing Systems segment, we design, manufacture, and market stranders and related equipment used in the production of OSB and sell debarking and wood chipping equipment used in the forest products and the pulp and paper industries. Through our Fiber-based Products business, we manufacture and sell granules derived from pulp fiber for use as carriers

Critical accounting policies are defined as those that entail significant judgments and uncertainties, and could potentially result in materially different results under different assumptions and conditions. We believe that our most critical accounting policies upon which our financial position depends, and which involve the most complex or subjective decisions or assessments, are those described below. For a discussion on the application of these and other accounting policies, see Note 1 to the consolidated financial statements.

We exercise judgment in determining our allowance for bad debts, which is based on our historical collection experience, current trends, credit policies, specific customer collection issues, and accounts receivable aging categories. In determining this allowance, we look at historical writeoffs of our receivables. We also look at current trends in the credit quality of our customer base as well as changes in our credit policies. We perform ongoing credit evaluations of our customers and adjust credit limits based upon payment history and each customer's current creditworthiness. We continuously monitor collections and payments from our customers. In addition, in some instances we utilize letters of credit as a way to mitigate credit exposure. While actual bad debts have historically been within our expectations and the provisions established, we cannot guarantee that we will continue to experience the same rate of bad debts that we have had in the past. A significant change in the liquidity or financial position of any of our customers could result in the uncollectibility of the related accounts receivable and could adversely affect our operating results and cash flows in that period.

A significant increase in warranty occurrence rates or costs to repair our products would lead to an increase in the warranty provision and could have a material adverse impact on our consolidated results for the period or periods in which such returns or additional costs occur.

We estimate the degree to which our deferred tax assets on deductible temporary differences and tax loss or credit carryforwards will result in an income tax benefit based on the expected profitability by tax jurisdiction, and provide a valuation allowance for these deferred tax assets if it is more likely than not that they will not be realized in the future. If it were to become more likely than not that these deferred tax assets would be realized, we would reverse the related valuation allowance. Our tax valuation allowance was $13.0$11.5 million at year-end 2014.2015. Should our actual future taxable income by tax jurisdiction vary from our estimates, additional allowances or reversals thereof may be necessary. When assessing the need for a valuation allowance in a tax jurisdiction, we evaluate the weight of all available evidence to determine whether it is more likely than not that some portion or all of the deferred income tax assets will not be realized. As part of this evaluation, we consider our cumulative three-year history of earnings before income taxes, taxable income in prior carryback years, future reversals of existing taxable temporary differences, prudent and feasible tax planning strategies, and expected future results of operations. As of year-end 2014,2015, we continued to maintain a valuation allowance in the U.S. against certain of our state operating loss carryforwards due to the uncertainty of future profitability in state jurisdictions in the U.S. As of year-end 2014,2015, we maintained valuation allowances in certain foreign jurisdictions because of the uncertainty of future profitability. In the ordinary course of business there is inherent uncertainty in quantifying our income tax positions. It is our policy to provide for uncertain tax positions and the related interest and penalties based upon our assessment of whether a tax benefit is more likely than not to be sustained upon examination by tax authorities. At year-end 2014,2015, we believe that we have appropriately accounted for any liability for unrecognized tax benefits. To the extent we prevail in matters for which a liability for an unrecognized tax benefit is established or are required to pay amounts in excess of the liability, our effective tax rate in a given financial statement period may be affected.

We reinvest certain earnings of our international subsidiaries indefinitely, and accordingly, we do not provide for U.S. income taxes that could result from the remittance of such foreign earnings. Through year-end 2014,2015, we have not provided for U.S. income taxes on approximately $169.2$168.2 million of unremitted foreign earnings. The U.S. tax cost has not been determined due to the fact that it is not practicable to estimate at this time. The related foreign tax withholding, which would be required if we were to remit these foreign earnings to the U.S., would be approximately $3.0$3.6 million.

At January 3, 2015,2, 2016, we performed a quantitativequalitative goodwill impairment analysis. This impairment analysis included an assessment for allof certain qualitative factors including the results of prior fair value calculations, the movement of our share price and market capitalization, the reporting units, which indicatedunit and overall financial performance, and macroeconomic and industry conditions. We considered the qualitative factors and weighed the evidence obtained, and determined that it was not more likely than not that the fair value of eachany of the reporting unit exceededunits was less than its carrying value and, as a result,amount. Although we believe the second stepfactors considered in the impairment analysis are reasonable, significant changes in any one of the quantitative process was not required.assumptions used could have produced a different result.

At January 3, 2015,2, 2016, we performed a quantitative impairment analysis on our indefinite-lived intangible asset and determined that the asset was not impaired.

Intangible assets subject to amortization are evaluated for impairment if events or changes in circumstances indicate that the carrying value of an asset might be impaired. No indicators of impairment were identified in 2014.2015.

Our judgments and assumptions regarding the determination of the fair value of an intangible asset or goodwill associated with an acquired business could change as future events impact such fair values. A prolonged economic downturn, weakness in demand for our products, especially capital equipment products, or contraction in capital spending by paper companies or OSB manufacturers in our key markets could negatively affect the revenue and profitability assumptions used in our assessment of goodwill and intangible assets, which could result in additional impairment charges. Any future impairment loss could have a material adverse effect on our long-term assets and operating expenses in the period in which an impairment is determined to exist.

The cost and obligations of these arrangements are calculated using many assumptions to estimate the benefits that the employee earns while working, the amount of which cannot be completely determined until the benefit payments cease. Major assumptions used in accounting for these employee benefit plans include the discount rate, expected return on plan assets and rate of increase in employee compensation levels. Assumptions are determined based on Company data and appropriate market indicators in consultation with third-party actuaries, and are evaluated each year as of the plans' measurement dates. The fair value of plan assets is determined based on quoted market prices and observable market inputs. The unrecognized actuarial loss before tax associated with these plans totaled $9.1$8.9 million at year-end 2014, $0.52015, $0.6 million of which we expect to recognize in 2015.2016. Should any of these assumptions change, they would have an effect on net periodic pension costs and the unfunded benefit obligation. The projected benefit obligation and expense associated with these plans are sensitive to changes in the discount rate. For the noncontributory benefit retirement plan at our Kadant Solutions division, a 50 basis point decrease in the 20142015 discount rate would have resulted in an increase in pension expense of $0.2$0.3 million and an increase in the projected benefit obligation of $2.6$2.4 million.

Our bookings decreased 13% to $376 million in 2015 compared to $433 million in 2014. This decrease included a $34 million, or 8%, decrease from the unfavorable effects of foreign currency translation and a $16 million, or 4%, decrease from the reversal of a booking, originally recorded in 2014, due to uncertainty regarding financing for a project in China. These decreases were offset in part by a $7 million, or 2%, increase from an acquisition. Our revenue and income tends to be variable as producer demand for our capital equipment products is highly dependent on regional economic conditions and industry perceptions. This compares to demandthe level of capital spending by our customers, among other factors. Demand for our parts and consumables products which tends to be more predictable. In 2014, approximately 38% ofBookings for our revenue was from the sale of capital equipment and 62% was from the sale of parts and consumables products.products were $252 million, or 67% of total bookings, in 2015, compared to $258 million, or 60% of total bookings, in 2014.

In 2014, the North American papermakingThe largest and paper recyclingmost important regional market continued to befor our most significant market. Based on information provided by Resource Information Systems Inc., paper and board productionproducts in 2015 was North America, experienced a slight decline in 2014 attributed entirelytrend we expect to printing, writing, and newsprint grades which decreased 5.4% in 2014 compared to 2013. Board production, on the other hand, was up 1.5% in 2014 compared to 2013 led by containerboard production. Operating rates in the relatively strong containerboard sector were 95% for 2014 while paper mills rancontinue into 2016, although at an average operating rate of 89% in 2014 and 2013. U.S. OSB production increased 4.1% in 2014 compared to 2013, while Canadian OSB production increased 9.7%. The outlook for U.S. lumber and structural wood panels, which includes OSB, is expected to see continued growth in 2015 due in large part to new housing starts and home sales expected to be the highest since 2007, according to Freddie Mac's U.S. Economic and Housing Market Outlook for March 2015.lower revenue levels. Our bookings in North America were $231$213 million in 2014, up 43% compared to 2013, including 14% from acquisitions.

Revenues in our Stock-Preparation product line in 2014 increased $4.8 million, or 4%, due to the inclusion of $6.0 million in revenues from acquisitions and increased demand for our products at our North American operations, offset in part by decreased demand for our products at our South American and Chinese operations. Revenues in our Doctoring, Cleaning, & Filtration product line in 2014 included $2.5 million in revenues from acquisitions and a decrease of $0.9 million from the unfavorable effect of currency translation compared to 2013. Excluding revenues from acquisitions and the unfavorable effect of currency translation, revenues from our Doctoring, Cleaning, & Filtration product line in 2014 increased $3.3 million compared to 2013, primarily due to increased demand for our products at our North American operations. Excluding the unfavorable effect of currency translation, revenues in our Fluid-Handling product line increased $10.8 million, or 12%, in 2014 compared to 2013, primarily due to increased demand for our parts and consumables products at our European and North American operations.

Total stock-based compensation expense was $5.8 million and $5.2 million in 2014 and 2013, respectively, and is included in selling, general, and administrative expenses.

Research and development expenses decreased $0.5 million, or 8%, to $6.2 million in 2014 from $6.7 million in 2013 and represented 2% of revenues in both periods. The decrease in research and development expenses in 2014 primarily related to a reduction in product development costs at our Stock-Preparation product line. This decrease was offset in part by an increase at our Wood Processing Systems segment due to a full year of costs in 2014 compared to approximately two months in 2013.

The 2014 restructuring charges included severance costs of $0.3 million associated with the reduction of eight employees in Brazil and $0.1 million associated with the reduction of three employees in Sweden. In addition, we recorded facility-related costs of $0.4 million. We estimate annualized savings of $0.7 million in selling, general, and administrative expenses and $0.3 million in cost of revenues once theserelated to restructuring actions have been completed.plans prior to 2014.

We recorded net costs of $0.1 million in 2013, including restructuring charges of $1.8 million, net of a pre-tax gain of $1.7 million on the sale of assets in China. The restructuring costs included severance costs of $1.1 million associated with the reduction of 22 employees in Brazil and severance costs of $0.5 million associated with the reduction of 25 employees in Sweden. Also included in restructuring costs were facility-related costs of $0.2 million. 

These actions were taken to streamline our operations as a result of our acquisitions in 2013 and 2014. All of these itemsactions occurred in the Papermaking Systems segment.

Our investing activities used cash of $18.5 million in 2014, including $12.0 million for acquisitions and $6.8 million for purchases of property, plant, and equipment.

Our financing activities used cash of $32.3 million in 2014, including cash used for principal payments on our outstanding debt obligations of $37.0 million, repurchases of our common stock on the open market of $15.1 million, and the payment of $6.3 million in cash dividends to stockholders. These uses of cash were offset in part by $24.5 million of proceeds from borrowings under our 2012 Credit Agreement.

Our investing activities used cash of $68.2 million in 2013, including $65.6 million for acquisitions and $6.3 million for purchases of property, plant, and equipment. These uses of cash were offset in part by proceeds of $3.5 million from the sale of property, plant, and equipment, primarily from the sale of real estate in China.

Our financing activities provided cash of $22.6 million in 2013 including $53.6 million of proceeds from borrowings under our 2012 Credit Agreement. This source of cash was offset in part by cash used for principal payments on our outstanding debt obligations of $21.8 million, repurchases of our common stock on the open market of $5.4 million, and the payment of $4.2 million in cash dividends to stockholders.

We paid cash dividends of $29.1$7.2 million and $6.3 million in 2015 and 2014, respectively. On November 18, 2015, we declared a quarterly cash dividend totaling $0.17 per outstanding share of our common stock, or approximately $1.8 million, which was paid on February 11, 2016. In addition, on March 8, 2016, we declared a quarterly cash dividend of $0.19 per outstanding share of our common stock, which will be paid on May 12, 2016. Future declarations of dividends are subject to our board of directors' approval and may be adjusted as business needs or market conditions change. The payment of cash dividends is subject to our compliance with the consolidated leverage ratio contained in our 2012 including $30.5Credit Agreement.

As of year-end 2015, we had cash and cash equivalents of $65.5 million, providedof which $64.5 million was held by our continuing operations and $1.4 million used byforeign subsidiaries. It is our discontinued operation. A decrease in other current liabilities used cash of $12.8 million in 2012 largely dueintention to decreases in billings in excess of costs and fees and customer deposits both due to timing. A decrease in accounts payable used cash of $5.9 million in 2012 primarily due to a reduction in raw material purchases. Decreases in inventory and accounts receivable contributed cash of $10.3 million in 2012. The decrease in inventory resulted primarily from lower inventory requirements in 2012 compared toreinvest indefinitely the prior year period and the decrease in accounts receivable resulted primarily from lower revenues. A decrease in the accrued liabilitiesearnings of our discontinued operation used cashinternational subsidiaries in order to support the current and future capital needs of $1.4their operations. Through year-end 2015, we have not provided for U.S. income taxes on approximately $168.2 million in 2012. This decrease wasof unremitted foreign earnings. The U.S. tax cost has not been determined due to the payment of claims and associated costsfact that it is not practicable to estimate at this time. The related foreign tax withholding, which would be required if we were to remit the foreign earnings to the Composites LLC class action settlement on October 24, 2011.U.S., would be approximately $3.6 million.

Our investing activities used cashAlthough we currently have no material commitments for capital expenditures, we plan to make expenditures of $3.4approximately $7 to $8 million in 2012, including $4.3 millionduring 2016 for purchases of property, plant, and equipment, offset in part by proceeds of $0.8 million from the sale of property, plant, and equipment.

Our financing activities usedIn the future, our liquidity position will be primarily affected by the level of cash flows from operations, cash paid to satisfy debt repayments, capital projects, dividends, stock repurchases, or acquisitions. We believe that our existing resources, together with the cash available from our credit facilities and the cash we expect to generate from continuing operations, will be sufficient to meet the capital requirements of $19.3 million in 2012, including $14.5 millionour current operations for the repurchase of our common stock on the open market and $10.4 million for principal payments on our outstanding debt obligations. These uses of cash were offset in part by borrowings of $5.0 million made under our revolving credit facility in 2012.foreseeable future.

As of year-end 2014,2015, the outstanding balance under the 2012 Credit Agreement was $20 million. As of January 3, 2015,$26 million and we had $77.5$72.1 million of borrowing capacity available under the committed portion of our 2012 Credit Agreement. The amount we are able to borrow under the 2012 Credit Agreement is the total borrowing capacity of $100 million less any outstanding borrowings, letters of credit and multi-currency borrowings issued under the 2012 Credit Agreement.

Our obligations under the 2012 Credit Agreement may be accelerated upon the occurrence of an event of default under the 2012 Credit Agreement, which includes customary events of default including without limitation payment defaults, defaults in the performance of affirmative and negative covenants, the inaccuracy of representations or warranties, bankruptcy- and insolvency-related defaults, defaults relating to such matters as the Employment Retirement Income Security Act (ERISA), unsatisfied judgments, the failure to pay certain indebtedness, and a change of control default. In addition, the 2012 Credit Agreement

Loans under the 2012 Credit Agreement are guaranteed by certain of our domestic subsidiaries pursuant to a Guarantee Agreement, effective August 3, 2012.

Our obligations under the 2006 Commercial Real Estate Loan may be accelerated upon the occurrence of an event of default under the 2006 Commercial Real Estate Loan and the mortgage and security agreements, which includes customary events of default including without limitation payment defaults, defaults in the performance of covenants and obligations, the inaccuracy of representations or warranties, bankruptcy- and insolvency-related defaults, liens on the properties or collateral and uninsured judgments. In addition, the occurrence of an event of default under the 2012 Credit Agreement or any successor credit facility would be an event of default under the 2006 Commercial Real Estate Loan.

The counterparty to the 2006 and 2015 Swap Agreementsswap agreements could demand an early termination of the swap agreementagreements if we are in default under the 2012 Credit Agreement, or any agreement that amends or replaces the 2012 Credit Agreement in which the counterparty is a member, and we are unable to cure the default. An event of default under the 2012 Credit Agreement includes customary events of default and failure to comply with financial covenants, including a maximum consolidated leverage ratio of 3.5 to 1 and a minimum consolidated interest coverage ratio of 3 to 1.