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LONG-TERM DEBT AND LINES OF CREDIT | 6 Months Ended
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Jun. 30, 2018
Debt Disclosure [Abstract] |
LONG-TERM DEBT AND LINES OF CREDIT | LONG-TERM DEBT AND LINES OF CREDIT As of June 30, 2018 and December 31, 2017, long-term debt consisted of the following:
| June 30, 2018 |  | December 31, 2017
| (in thousands)
Credit Facility: |  |  |
Term loans (face amounts of $4,005,196 and $3,932,677 at June 30, 2018 and December 31, 2017, respectively, less unamortized debt issuance costs of $37,337 and $37,961 at June 30, 2018 and December 31, 2017, respectively) | $ | 3,967,859 |  |  | $ | 3,894,716 |
Revolving Credit Facility | 362,000 |  |  | 765,000 |
Total long-term debt | 4,329,859 |  |  | 4,659,716 |
Less current portion of Credit Facility (face amounts of $83,239 and $108,979 at June 30, 2018 and December 31, 2017, respectively, less unamortized debt issuance costs of $8,522 and $8,671 at June 30, 2018 and December 31, 2017, respectively) | 74,717 |  |  | 100,308 |
Long-term debt, excluding current portion | $ | 4,255,142 |  |  | $ | 4,559,408 |
Maturity requirements on long-term debt as of June 30, 2018 by year are as follows (in thousands):
Years ending December 31, |
2018 | $ | 41,620 |
2019 | 119,109 |
2020 | 154,979 |
2021 | 190,848 |
2022 | 262,587 |
2023 | 3,598,053 |
Total | $ | 4,367,196 |
Credit Facility We are party to a credit facility agreement with Bank of America, N.A., as administrative agent, and a syndicate of financial institutions as lenders and other agents (as amended from time to time, the "Credit Facility"). On March 20, 2018, we entered into the First Refinancing Facility Amendment (the "Refinancing Amendment") to our Second Amended and Restated Credit Agreement, dated July 31, 2015 (as amended from time to time, the "Credit Agreement"). The Refinancing Amendment provided a new term B loan in an aggregate principal amount of $1.14 billion ("Term B-2 Loan") to refinance the entire amount of the previously existing term B-2 loan outstanding immediately prior to giving effect to this amendment. The Refinancing Amendment also reduced the interest rate margin applicable to our Term B-2 Loan by 25 basis points. On June 19, 2018, we entered into the Fifth Amendment (the "Fifth Amendment") to the Credit Agreement. The Fifth Amendment increased the total financing capacity available under the Credit Facility to approximately $5.5 billion; however our aggregate outstanding debt under the Credit Facility did not change as a result of this transaction. The Fifth Amendment reduced the interest rate margin applicable to our Term A Loan, Term A-2 Loan and Revolving Credit Facility (each defined below) by 25 basis points and extended the maturities of Term A Loan, Term A-2 Loan and the Revolving Credit Facility. As of June 30, 2018, the Credit Facility, provided for secured financing comprised of (i) a $1.5 billion revolving credit facility (the "Revolving Credit Facility"); (ii) a $1.5 billion term loan (the "Term A Loan"), (iii) a $1.37 billion term loan (the "Term A-2 Loan") and (iv) the Term B-2 Loan. Substantially all of the assets of our domestic subsidiaries are pledged as collateral under the Credit Facility. The Credit Facility provides for an interest rate, at our election, of either London Interbank Offered Rate ("LIBOR") or a base rate, in each case plus a margin. As of June 30, 2018, the interest rates on the Term A Loan, the Term A-2 Loan and the Term B-2 Loan were 3.59%, 3.48% and 3.84%, respectively. As of June 30, 2018, the interest rate on the Revolving Credit Facility was 3.48%. In addition, we are required to pay a quarterly commitment fee on the unused portion of the Revolving Credit Facility at an applicable rate per annum ranging from 0.20% to 0.30% depending on our leverage ratio. The Term A Loan and the Term A-2 Loan mature, and the Revolving Credit Facility expires, on January 20, 2023. The Term B-2 Loan matures on April 22, 2023. The Term A Loan and Term A-2 Loan principals must be repaid in quarterly installments in the amount of 0.625% of principal through June 2019, increasing to 1.25% of principal through June 2021, increasing to 1.875% of principal through June 2022 and increasing to 2.50% through December 2022, with the remaining principal balance due upon maturity in January 2023. The Term B-2 Loan principal must be repaid in quarterly installments in the amount of 0.25% of principal through March 2023, with the remaining principal balance due upon maturity in April 2023. The Credit Facility allows us to issue standby letters of credit of up to $100 million in the aggregate under the Revolving Credit Facility. Outstanding letters of credit under the Revolving Credit Facility reduce the amount of borrowings available to us. Borrowings available to us under the Revolving Credit Facility are further limited by the covenants described below under "Compliance with Covenants." The total available commitments under the Revolving Credit Facility at June 30, 2018 and December 31, 2017 were $1,125.4 million and $473.3 million, respectively. The portion of deferred debt issuance costs related to the Revolving Credit Facility is included in other noncurrent assets, and the portion of deferred debt issuance costs related to the term loans is reported as a reduction to the carrying amount of the term loans. Debt issuance costs are amortized as an adjustment to interest expense over the terms of the respective facilities. Settlement Lines of Credit In various markets where we do business, we have specialized lines of credit, which are restricted for use in funding settlement. The settlement lines of credit generally have variable interest rates, are subject to annual review and are denominated in local currency but may, in some cases, facilitate borrowings in multiple currencies. For certain of our settlement lines of credit, the available credit is increased by the amount of cash we have on deposit in specific accounts with the lender. Accordingly, the amount of the outstanding line of credit may exceed the stated credit limit. As of June 30, 2018 and December 31, 2017, a total of $48.2 million and $59.3 million, respectively, of cash on deposit was used to determine the available credit. As of June 30, 2018 and December 31, 2017, respectively, we had $547.3 million and $635.2 million outstanding under these lines of credit with additional capacity of $764.2 million as of June 30, 2018 to fund settlement. The weighted-average interest rate on these borrowings was 2.45% and 1.97% at June 30, 2018 and December 31, 2017, respectively. During the three months ended June 30, 2018, the maximum and average outstanding balances under these lines of credit were $667.9 million and $396.4 million, respectively. Compliance with Covenants The Credit Facility contains customary affirmative and restrictive covenants, including, among others, financial covenants based on our leverage and interest coverage ratios, as defined in the agreement. As of June 30, 2018, financial covenants under the Credit Facility required a leverage ratio no greater than: (i) 5.00 to 1.00 as of the end of any fiscal quarter ending during the period from April 1, 2018 through June 30, 2019; (ii) 4.75 to 1.00 as of the end of any fiscal quarter ending during the period from July 1, 2019 through June 30, 2020; and (iii) 4.50 to 1.00 as of the end of any fiscal quarter ending thereafter. The interest coverage ratio is required to be no less than 3.25 to 1.00. The Credit Facility and settlement lines of credit also include various other covenants that are customary in such borrowings. The Credit Facility includes covenants, subject in each case to exceptions and qualifications, that may restrict certain payments, including in certain circumstances, the payment of cash dividends in excess of our current rate of $0.01 per share per quarter. The Credit Facility also includes customary events of default, the occurrence of which, following any applicable cure period, would permit the lenders to, among other things, declare the principal, accrued interest and other obligations to be immediately due and payable. We were in compliance with all applicable covenants as of June 30, 2018. Interest Rate Swap Agreements We have interest rate swap agreements with financial institutions to hedge changes in cash flows attributable to interest rate risk on a portion of our variable-rate debt instruments. Net amounts to be received or paid under the swap agreements are reflected as adjustments to interest expense. Since we have designated the interest rate swap agreements as portfolio cash flow hedges, unrealized gains or losses resulting from adjusting the swaps to fair value are recorded as components of other comprehensive income. The fair values of the interest rate swaps were determined based on the present value of the estimated future net cash flows using implied rates in the applicable yield curve as of the valuation date. These derivative instruments were classified within Level 2 of the valuation hierarchy. The table below presents the fair values of our derivative financial instruments designated as cash flow hedges included in the consolidated balance sheets:
Derivative Financial Instruments |  | Balance Sheet Location |  | Weighted-Average Fixed Rate of Interest at June 30, 2018 |  | Range of Maturity Dates at June 30, 2018 |  | June 30, 2018 |  | December 31, 2017
|  |  |  |  |  |  |  | (in thousands)
Interest rate swaps (Notional of $500 million at June 30, 2018) |  | Prepaid expenses and other current assets |  | 1.52% |  | February 28, 2019 |  | $ | 2,544 |  |  | $ | — |
Interest rate swaps (Notional of $800 million at June 30, 2018 and $1,300 million at December 31, 2017) |  | Other noncurrent assets |  | 1.63% |  | December 31, 2019 - March 31, 2021 |  | $ | 16,003 |  |  | $ | 9,202 |
The table below presents the effects of our interest rate swaps on the consolidated statements of income and comprehensive income for the three and six months ended June 30, 2018 and 2017:
| Three Months Ended |  | Six Months Ended
| June 30, 2018 |  | June 30, 2017 |  | June 30, 2018 |  | June 30, 2017
| (in thousands)
Amount of unrealized gains (losses) recognized in other comprehensive income (loss) | $ | 2,932 |  |  | $ | (3,382 | ) |  | $ | 10,508 |  |  | $ | (2,555 | )
Amount of unrealized (gains) losses reclassified out of other comprehensive income (loss) to interest expense | $ | (1,104 | ) |  | $ | 1,897 |  |  | $ | (1,167 | ) |  | $ | 3,493 |
As of June 30, 2018, the amount of net unrealized gains in accumulated other comprehensive loss related to our interest rate swaps that is expected to be reclassified into interest expense during the next 12 months was approximately $9.7 million. Interest Expense Interest expense was $48.1 million and $47.4 million for the three months ended June 30, 2018 and 2017, respectively, and $93.5 million and $88.5 million for the six months ended June 30, 2018 and 2017, respectively.

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- Definition 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. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -URI http://asc.fasb.org/topic&trid=2208564 + Details
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