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Long-term debt | 12 Months Ended
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Dec. 31, 2018
Debt Disclosure [Abstract] |
Long-term debt | Long-term debt Long-term debt consists of the following at year-end:
|  | 2018 |  | 2017
2027 Notes |  | $ | 265,000 |  |  | $ | 265,000 |
2023 Notes |  | 348,069 |  |  | 348,069 |
Capital lease obligations |  | 6,503 |  |  | 4,539 |
Other long-term borrowings |  | 16,676 |  |  | 22,900 |
Subtotal |  | 636,248 |  |  | 640,508 |
Discount on 2023 Notes |  | (3,156 | ) |  | (3,804 | )
Premium on 2023 Notes |  | 1,187 |  |  | 1,438 |
Deferred financing costs |  | (4,019 | ) |  | (4,641 | )
Total |  | 630,260 |  |  | 633,501 |
Current portion of long-term debt |  | 3,836 |  |  | 4,359 |
Long-term debt, excluding current portion |  | $ | 626,424 |  |  | $ | 629,142 |
2027, 2023 and 2016 Notes: The following table presents additional information related to the 2027, 2023 and 2016 Notes (the "Notes"):
|  |  |  |  | Principal as of December 31, |  |
| Annual interest rate |  | Currency |  | 2018 |  | 2017 |  | Maturity
2027 Notes | 5.875 | % |  | USD |  | $ | 265,000 |  |  | $ | 265,000 |  |  | April 4, 2027
2023 Notes | 6.625 | % |  | USD |  | 348,069 |  |  | 348,069 |  |  | September 27, 2023
|  | Interest Expense (i) |  | DFC Amortization (i) |  | Amortization of Discount, net (i)
|  | 2018 |  | 2017 |  | 2016 |  | 2018 |  | 2017 |  | 2016 |  | 2018 |  | 2017 |  | 2016
2027 Notes |  | $ | 15,569 |  |  | $ | 11,547 |  |  | $ | — |  |  | $ | 299 |  |  | $ | 224 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
2023 Notes |  | 23,060 |  |  | 23,885 |  |  | 28,516 |  |  | 323 |  |  | 610 |  |  | 943 |  |  | 397 |  |  | 752 |  |  | 1,157 |
2016 Notes |  | — |  |  | — |  |  | 6,668 |  |  | — |  |  | — |  |  | 391 |  |  | — |  |  | — |  |  | (266 | )
(i) | These charges are included within "Net interest expense" in the consolidated statements of income.
On July 13, 2011 and April 24, 2012, the Company issued Brazilian reais notes due in 2016 (the "2016 Notes") amounting to BRL 675,000. Periodic payments of principal were not required and interest was paid semi-annually beginning on January 13, 2012. The Company incurred $3,699 of financing costs related to these issuances, which were capitalized as deferred financing costs ("DFC") and were amortized over the life of the notes. The following table presents information related to the purchase and repayments of the principal of the 2016 Notes:
|  | Amount
Date | Redemption price | BRL | $
November 25, 2015 | 93.75% | 40,000 |  |  | 9,995 |  |
November 30, 2015 | 93.75% | 7,039 |  |  | 1,715 |  |
January 29, 2016 | 97.75% | 1,180 |  |  | 288 |  |
April 21, 2016 | 100.00% | 421,765 |  |  | 118,797 |  |
May 5, 2016 | 97.00% | 4,025 |  |  | 1,106 |  |
July 13, 2016 | 100.00% | 200,991 |  |  | 60,965 |  |
Total |  | 675,000 |  |  | 192,866 |  |
On September 27, 2013, the Company issued senior notes for an aggregate principal amount of $473.8 million, which are due in 2023 (the "2023 Notes"). Periodic payments of principal are not required and interest is paid semi-annually commencing on March 27, 2014. The Company incurred $3,313 of financing costs related to the cash issuance of 2023 Notes, which were capitalized as DFC and are being amortized over the life of the notes. On June 1, 2016, the Company launched a cash tender offer to purchase $80,000 of its outstanding 2023 Notes, at a redemption price equal to 98%, which expired on June 28, 2016. The holders who tendered their 2023 Notes prior to June 14, received a redemption price equal to 101%. As a consequence of this transaction, the Company redeemed 16.90% of the outstanding principal. The total payment was $80,800 (including $800 of early tender payment) plus accrued and unpaid interest. 2027, 2023 and 2016 Notes (continued): The results related to the cash tender offer and the accelerated amortization of the related DFC were recognized as interest expense within the consolidated statement of income. Furthermore, on March 16, 2017, the Company launched another cash tender offer to purchase $80,000 of its outstanding 2023 Notes, at a redemption price equal to 104%, which expired on April 12, 2017. The holders who tendered their 2023 Notes prior to March 29, 2017, received a redemption price equal to 107%. As a consequence of this transaction, the Company redeemed 11.6% of the outstanding principal. The total payment was $48,885 (including $3,187 of early tender payment) plus accrued and unpaid interest. The results related to the cash tender offer and the accelerated amortization of the related DFC were recognized as interest expense within the consolidated statement of income. In April 2017, the Company issued senior notes for an aggregate principal amount of $265 million, which are due in 2027 (the “2027 Notes”). Periodic payments of principal are not required and interest is paid semi-annually commencing on October 4, 2017. The proceeds from the issuance of the 2027 Notes were used to repay the Secured Loan Agreement, unwind the related derivative instruments (described in Note 13), pay the principal and premium on the 2023 Notes (in connection with the aforementioned tender offer) and for general purposes. The Company incurred $3,001 of financing costs related to the issuance of 2027 Notes, which were capitalized as DFC and are being amortized over the life of the notes. The Notes are redeemable, in whole or in part, at the option of the Company at any time at the applicable redemption price set forth in the indenture governing them. The Notes are fully and unconditionally guaranteed on a senior unsecured basis by certain of the Company’s subsidiaries. The Notes and guarantees (i) are senior unsecured obligations and rank equal in right of payment with all of the Company’s and guarantors’ existing and future senior unsecured indebtedness; (ii) will be effectively junior to all of the Company’s and guarantors’ existing and future secured indebtedness to the extent of the value of the Company’s assets securing that indebtedness; and (iii) are structurally subordinated to all obligations of the Company’s subsidiaries that are not guarantors. The indenture governing the Notes limits the Company’s and its subsidiaries’ ability to, among other things, (i) create certain liens; (ii) enter into sale and lease-back transactions; and (iii) consolidate, merge or transfer assets. In addition, the indenture governing the 2027 Notes, limits the Company’s and its subsidiaries’ ability to: incur in additional indebtedness and make certain restricted payments, including dividends. These covenants are subject to important qualifications and exceptions. The indenture governing the Notes also provides for events of default, which, if any of them occurs, would permit or require the principal, premium, if any, and interest on all of the then-outstanding Notes to be due and payable immediately. The 2023 Notes are listed on the Luxembourg Stock Exchange and trade on the Euro MTF Market. Secured Loan Agreement On March 29, 2016, the Company’s Brazilian subsidiary signed a $167,262 Secured Loan Agreement (the "Loan") with five off-shore lenders namely: Citibank N.A., Itaú BBA International plc, Santander (Brasil) S.A., Cayman Islands Branch, Bank of America N.A. and JP Morgan Chase Bank, N.A. Each loan under the agreement bore interest at the following annual interest rates:
Lender |  | Annual Interest Rate
Citibank N.A. |  | 3M LIBOR + 2.439%
Itaú BBA International plc |  | 5.26%
Banco Santander (Brasil) S.A., Cayman Islands Branch |  | 4.7863%
Bank of America N.A. |  | 3M LIBOR + 4.00%
JP Morgan Chase Bank, N.A. |  | 3M LIBOR + 3.92%
Secured Loan Agreement (continued) In order to fully convert each loan of the agreement into BRL, the Brazilian subsidiary entered into five cross-currency interest rate swap agreements with the local subsidiaries of the same lenders. Consequently, the loans were fully converted into BRL amounting to BRL 613,850. Refer to Note 13 for more details. Considering the cross-currency interest rate swap agreements, the final interest rate of the Loan was the Interbank Market reference interest rate (known in Brazil as “CDI”) plus 4.50% per year. Interest payments were made quarterly, beginning June 2016 and principal payments were made semi-annually, beginning September 2017. The Loan would have matured on March 30, 2020 and periodic payments of principal were required. Prepayments were allowed without penalty. On April 11, 2017, the Company repaid the Loan with a total payment of $169.7 million including the outstanding principal, plus accrued and unpaid interest and certain transaction costs. The Company incurred $3,243 of financing costs related to the issuance of the Loan, which were capitalized as DFC and were amortized over the life of the Loan. As a consequence of the repayment, the remaining DFC were recognized as interest expense in the consolidated statement of income. The following table presents information related to the Secured Loan Agreement:
Interest Expense (i) (ii) |  | DFC Amortization (ii) |  | Other Costs (ii) (iii)
2018 |  | 2017 |  | 2016 |  | 2018 |  | 2017 |  | 2016 |  | 2018 |  | 2017 |  | 2016
$ | — |  |  | $ | 2,570 |  |  | $ | 6,519 |  |  | $ | — |  |  | $ | 3,251 |  |  | $ | 814 |  |  | $ | — |  |  | $ | 2,249 |  |  | $ | — |
(i) | These charges do not include the effect of the cross-currency interest rate swap agreements mentioned in Note 13, amounting to a loss of $6,921 and $18,177, during fiscal years 2017 and 2016, respectively. Including these effects the total interest cost amounts to $9,491 and $24,696, respectively.
(ii) | These charges are included within "Net interest expense" in the consolidated statement of income.
(iii) | Transaction costs related to the repayment of the Loan.
Other required disclosure At December 31, 2018, future payments related to the Company’s long-term debt are as follows:
|  | Principal |  | Interest |  | Total
2019 |  | $ | 3,836 |  |  | $ | 40,537 |  |  | $ | 44,373 |
2020 |  | 3,355 |  |  | 40,243 |  |  | 43,598 |
2021 |  | 3,298 |  |  | 39,941 |  |  | 43,239 |
2022 |  | 3,493 |  |  | 39,598 |  |  | 43,091 |
2023 |  | 351,074 |  |  | 39,314 |  |  | 390,388 |
Thereafter |  | 271,192 |  |  | 57,175 |  |  | 328,367 |
Total payments |  | 636,248 |  |  | 256,808 |  |  | 893,056 |
Interest |  | — |  |  | (256,808 | ) |  | (256,808 | )
Discount on 2023 Notes |  | (3,156 | ) |  | — |  |  | (3,156 | )
Premium on 2023 Notes |  | 1,187 |  |  | — |  |  | 1,187 |
Deferred financing cost |  | (4,019 | ) |  | — |  |  | (4,019 | )
Long-term debt |  | $ | 630,260 |  |  | $ | — |  |  | $ | 630,260 |

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