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FAIR VALUE OF FINANCIAL INSTRUMENTS | 6 Months Ended
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Jun. 30, 2016
Fair Value Disclosures [Abstract] |
FAIR VALUE OF FINANCIAL INSTRUMENTS | FAIR VALUE OF FINANCIAL INSTRUMENTS Forward Foreign Exchange and Currency Option Contracts The Corporation has foreign currency exposure primarily in the United Kingdom, Europe, and Canada. The Corporation uses financial instruments, such as forward and option contracts, to hedge a portion of existing and anticipated foreign currency denominated transactions. The purpose of the Corporation’s foreign currency risk management program is to reduce volatility in earnings caused by exchange rate fluctuations. Guidance on accounting for derivative instruments and hedging activities requires companies to recognize all of the derivative financial instruments as either assets or liabilities at fair value in the Condensed Consolidated Balance Sheets based upon quoted market prices for comparable instruments. Interest Rate Risks and Related Strategies The Corporation’s primary interest rate exposure results from changes in U.S. dollar interest rates. The Corporation’s policy is to manage interest cost using a mix of fixed and variable rate debt. The Corporation periodically uses interest rate swaps to manage such exposures. Under these interest rate swaps, the Corporation exchanges, at specified intervals, the difference between fixed and floating interest amounts calculated by reference to an agreed-upon notional principal amount. For interest rate swaps designated as fair value hedges (i.e., hedges against the exposure to changes in the fair value of an asset or a liability or an identified portion thereof that is attributable to a particular risk), changes in the fair value of the interest rate swaps offset changes in the fair value of the fixed rate debt due to changes in market interest rates. On February 5, 2016, the Corporation terminated its March 2013 and January 2012 interest rate swap agreements. As a result of the termination, the Corporation received a cash payment of $20.4 million, representing the fair value of the interest rate swaps on the date of termination. In connection with the termination, the Corporation and the counterparties released each other from all obligations under the interest rate swaps agreement, including, without limitation, the obligation to make periodic payments under such agreements. The gain on termination is reflected as a bond premium to our notes' carrying value and amortized prospectively into interest expense over the remaining terms of the Senior Notes. The fair value accounting guidance requires that assets and liabilities carried at fair value be classified and disclosed in one of the following three categories: Level 1: Quoted market prices in active markets for identical assets or liabilities that the company has the ability to access. Level 2: Observable market based inputs or unobservable inputs that are corroborated by market data such as quoted prices, interest rates and yield curves. Level 3: Inputs are unobservable data points that are not corroborated by market data. Based upon the fair value hierarchy, all of the forward foreign exchange contracts and interest rate swaps are valued at a Level 2. Effects on Consolidated Balance Sheets The location and amounts of derivative instrument fair values in the condensed consolidated balance sheet are below.
(In thousands) | June 30, 2016 |  | December 31, 2015
Assets |  |  |
Designated for hedge accounting |  |  |
Interest rate swaps | $ | — |  |  | $ | 3,083 |
Undesignated for hedge accounting |  |  |
Forward exchange contracts | $ | 374 |  |  | $ | 223 |
Total asset derivatives (A) | $ | 374 |  |  | $ | 3,306 |
Liabilities |  |  |
Undesignated for hedge accounting |  |  |
Forward exchange contracts | 961 |  |  | 673 |
Total liability derivatives (B) | $ | 961 |  |  | $ | 673 |
(A)Forward exchange derivatives are included in Other current assets and interest rate swap assets are included in Other assets. (B)Forward exchange derivatives are included in Other current liabilities. Effects on Condensed Consolidated Statements of Earnings Fair value hedge The location and amount of gains on the hedged fixed rate debt attributable to changes in the market interest rates and the offsetting loss on the related interest rate swaps for the three and six months ended June 30, 2016 and 2015, were as follows:
|  | Three Months Ended |  | Six Months Ended |
(In thousands) |  | June 30, |  | June 30, |
|  | 2016 |  | 2015 |  | 2016 |  | 2015 |
Other income, net |  |  |  |  |  |  |  |  |
Loss on interest rate swaps |  | $ | — |  |  | $ | (16,232 | ) |  | $ | — |  |  | $ | (4,322 | ) |
Gain on hedged fixed rate debt |  | — |  |  | 16,232 |  |  | — |  |  | 4,322 |  |
Total |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |
Undesignated hedges The location and amount of gains and (losses) recognized in income on forward exchange derivative contracts not designated for hedge accounting for the three and six months ended June 30, were as follows:
|  | Three Months Ended |  | Six Months Ended
(In thousands) |  | June 30, |  | June 30,
Derivatives not designated as hedging instrument |  | 2016 |  | 2015 |  | 2016 |  | 2015
Forward exchange contracts: |  |  |  |  |  |  |  |
General and administrative expenses |  | $ | (4,452 | ) |  | $ | 2,528 |  |  | $ | (5,036 | ) |  | $ | 1,556 |
Debt The estimated fair value amounts were determined by the Corporation using available market information that is primarily based on quoted market prices for the same or similar issues as of June 30, 2016. Accordingly, all of the Corporation’s debt is valued at a Level 2. The fair values described below may not be indicative of net realizable value or reflective of future fair values. Furthermore, the use of different methodologies to determine the fair value of certain financial instruments could result in a different estimate of fair value at the reporting date.
| June 30, 2016 |  | December 31, 2015
(In thousands) | Carrying Value |  | Estimated Fair Value |  | Carrying Value |  | Estimated Fair Value
5.51% Senior notes due 2017 | 150,000 |  |  | 156,982 |  |  | 150,000 |  |  | 158,024 |
3.84% Senior notes due 2021 | 100,000 |  |  | 105,589 |  |  | 100,307 |  |  | 100,307 |
3.70% Senior notes due 2023 | 225,000 |  |  | 235,497 |  |  | 225,000 |  |  | 224,322 |
3.85% Senior notes due 2025 | 100,000 |  |  | 105,565 |  |  | 100,450 |  |  | 100,450 |
4.24% Senior notes due 2026 | 200,000 |  |  | 216,485 |  |  | 201,422 |  |  | 201,422 |
4.05% Senior notes due 2028 | 75,000 |  |  | 79,699 |  |  | 75,904 |  |  | 75,904 |
4.11% Senior notes due 2028 | 100,000 |  |  | 106,909 |  |  | 100,000 |  |  | 99,720 |
Other debt | 1,113 |  |  | 1,113 |  |  | 1,259 |  |  | 1,259 |
Total debt | 951,113 |  |  | 1,007,839 |  |  | 954,342 |  |  | 961,408 |
Unamortized debt issuance costs (1) | (1,060 | ) |  | (1,060 | ) |  | (1,137 | ) |  | (1,137 | )
Unamortized interest rate swap proceeds (2) | 17,511 |  |  | 17,511 |  |  | — |  |  | — |
Total debt, net | $ | 967,564 |  |  | $ | 1,024,290 |  |  | $ | 953,205 |  |  | $ | 960,271 |
(1) Effective for 2016, the Company adopted ASU 2015-03 - Simplifying the Presentation of Debt Issuance Costs requiring unamortized debt issuance costs to be presented on the balance sheet as a direct deduction from the carrying amount of the related debt liability. Prior year balances have been reclassified to reflect the current year presentation. (2) In February 2016, the Company terminated its interest rate swap agreements. Upon termination of the interest rate swaps, the Corporation received $20.4 million in cash and recorded a deferred gain of $18.3 million. As of June 30, 2016, the remaining benefit of $17.5 million was recorded as an increase in the long-term debt balance and will be recognized ratably as a reduction to future interest expense over the remaining life of the related debt. Nonrecurring measurements As discussed in Note 2, Discontinued Operations and Assets Held For Sale, the Corporation classified certain businesses as held for sale during 2014. In accordance with the provisions of the Impairment or Disposal of Long-Lived Assets guidance of FASB Codification Subtopic 360–10, the carrying amount of the disposal groups were written down to their estimated fair value, less costs to sell, resulting in an impairment charge of $40.8 million, which was included in the loss from discontinued operations before income taxes for the six months ended June 30, 2015. The fair value of the disposal groups were determined primarily by using non-binding quotes. In accordance with the fair value hierarchy, the impairment charge is classified as a Level 3 measurement as it is based on significant other unobservable inputs.

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- Definition The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=66048111&loc=d3e19207-110258 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 30 -URI http://asc.fasb.org/extlink&oid=6957238&loc=d3e14172-108612 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 28 -URI http://asc.fasb.org/extlink&oid=6957238&loc=d3e14064-108612 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 21 -URI http://asc.fasb.org/extlink&oid=73719730&loc=d3e13537-108611 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 16 -URI http://asc.fasb.org/extlink&oid=73719730&loc=d3e13504-108611 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 10 -URI http://asc.fasb.org/extlink&oid=73719730&loc=d3e13433-108611 + Details
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