XML 28 R15.htm IDEA: XBRL DOCUMENT v3.5.0.2
Fair Value Measurements
 9 Months Ended
Sep. 30, 2016
Fair Value Disclosures [Abstract]  
Fair Value Measurements
Fair Value Measurements
Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date in the principal or most advantageous market for that asset or liability. Guidance on fair value measurements and disclosures establishes a valuation hierarchy for disclosure of inputs used in measuring fair value defined as follows:
Level 1—Inputs are unadjusted quoted prices that are available in active markets for identical assets or liabilities.
Level 2—Inputs include quoted prices for similar assets and liabilities in active markets and quoted prices in non-active markets, inputs other than quoted prices that are observable, and inputs that are not directly observable, but are corroborated by observable market data.
Level 3—Inputs that are unobservable and are supported by little or no market activity and reflect the use of significant management judgment.
The classification of a financial asset or liability within the hierarchy is determined based on the least reliable level of input that is significant to the fair value measurement. In determining fair value, we utilize valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible. We also consider the counterparty and our own non-performance risk in our assessment of fair value.
Assets and Liabilities that are Measured at Fair Value on a Recurring Basis
Available-for-sale Securities—Our available-for-sale securities include securities of a publicly-traded non-U.S. entity. The fair value of these securities is obtained from market quotes as of the last day of the period. Our available-for-sale securities are included in prepaid and other current assets as of September 30, 2016 and in other assets as of December 31, 2015 in our consolidated balance sheets.
Foreign Currency Forward Contracts—The fair value of the foreign currency forward contracts is estimated based upon pricing models that utilize Level 2 inputs derived from or corroborated by observable market data such as currency spot and forward rates.
Interest Rate Swaps—The fair value of our interest rate swaps is estimated using a combined income and market-based valuation methodology based upon Level 2 inputs including credit ratings and forward interest rate yield curves obtained from independent pricing services reflecting broker market quotes.
The following tables present our assets (liabilities) that are required to be measured at fair value on a recurring basis as of September 30, 2016 and December 31, 2015 (in thousands):
 
 
 
Fair Value at Reporting Date Using
 
September 30, 2016
 
Level 1
 
Level 2
 
Level 3
Available-for-sale securities
$
52,614

 
$
52,614

 
$
—

 
$
—

Derivatives

 

 

 

Foreign currency forward contracts
486

 
—

 
486

 
—

Interest rate swap contracts
(19,436
)
 
—

 
(19,436
)
 
—

Total
$
33,664

 
$
52,614

 
$
(18,950
)
 
$
—

 
 
 
 
Fair Value at Reporting Date Using
 
December 31, 2015
 
Level 1
 
Level 2
 
Level 3
Available-for-sale securities
$
36,711

 
$
36,711

 
$
—

 
$
—

Derivatives
 

 
 

 
 

 
 

Foreign currency forward contracts
(1,759
)
 
—

 
(1,759
)
 
—

Interest rate swap contracts
(13,734
)
 
—

 
(13,734
)
 
—

Total
$
21,218

 
$
36,711

 
$
(15,493
)
 
$
—


There were no transfers between Levels 1 and 2 within the fair value hierarchy for the nine months ended September 30, 2016.
Other Financial Instruments
The carrying value of our financial instruments including cash and cash equivalents, and accounts receivable approximates their fair values. The fair values of our senior unsecured notes due 2016, senior secured notes due 2023 and term loans under our Amended and Restated Credit Agreement are determined based on quoted market prices for the similar liability when traded as an asset in an active market, a Level 2 input. The outstanding principal balance of our mortgage facility approximated its fair value as of September 30, 2016 and December 31, 2015. The fair values of the mortgage facility were determined based on estimates of current interest rates for similar debt, a Level 2 input.
The following table presents the fair value and carrying value of our senior notes and borrowings under our senior secured credit facilities as of September 30, 2016 and December 31, 2015 (in thousands):
 
 
Fair Value at
 
Carrying Value at
Financial Instrument
 
September 30, 2016
 
December 31, 2015
 
September 30, 2016
 
December 31, 2015
Term A facility
 
$
592,500

 
$
—

 
$
589,766

 
$
—

Term B facility
 
1,428,000

 
1,705,609

 
1,417,249

 
1,716,048

Incremental term loan facility
 
283,589

 
339,559

 
282,354

 
342,125

Term C facility
 
49,436

 
49,251

 
49,216

 
49,157

New Revolver, $400 million
 
—

 
—

 
—

 
—

Extended Revolver, $370 million (1)
 
—

 
—

 
—

 
—

Unextended Revolver, $35 million (1)
 
—

 
—

 
—

 
—

5.375% Senior secured notes due 2023
 
545,900

 
528,013

 
530,000

 
530,000

5.25% Senior secured notes due 2023
 
511,250

 
494,375

 
500,000

 
500,000

Senior unsecured notes due 2016
 
—

 
165,804

 
—

 
164,628

  
______________________________
(1)
Replaced on July 18, 2016 by the New Revolver.