XML 27 R14.htm IDEA: XBRL DOCUMENT v3.7.0.1
Fair Value Measurements
 3 Months Ended
Mar. 31, 2017
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
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 March 31, 2017 and December 31, 2016 (in thousands):
 
 
 
Fair Value at Reporting Date Using
 
March 31, 2017
 
Level 1
 
Level 2
 
Level 3
Derivatives
 
 
 
 
 
 
 
Foreign currency forward contracts
$
977

 
$
—

 
$
977

 
$
—

Interest rate swap contracts
(13,770
)
 
—

 
(13,770
)
 
—

Total
$
(12,793
)
 
$
—

 
$
(12,793
)
 
$
—

 
 
 
 
Fair Value at Reporting Date Using
 
December 31, 2016
 
Level 1
 
Level 2
 
Level 3
Derivatives
 
 
 
 
 
 
 
Foreign currency forward contracts
$
(7,360
)
 
$
—

 
$
(7,360
)
 
$
—

Interest rate swap contracts
(15,684
)
 
—

 
(15,684
)
 
—

Total
$
(23,044
)
 
$
—

 
$
(23,044
)
 
$
—


There were no transfers between Levels 1 and 2 within the fair value hierarchy for the three months ended March 31, 2017.
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 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 December 31, 2016. The fair value of the mortgage facility was 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 March 31, 2017 and December 31, 2016, (in thousands):
 
 
Fair Value at
 
Carrying Value at (2)
Financial Instrument
 
March 31, 2017
 
December 31, 2016
 
March 31, 2017
 
December 31, 2016
Term Loan A
 
$
576,417

 
$
583,538

 
$
575,353

 
$
582,595

New Term Loan B
 
1,910,649

 
—

 
1,889,842

 
—

Prior Term Loan B(1)
 
—

 
1,435,993

 
—

 
1,417,616

Incremental Term Loan Facility(1)
 
—

 
283,413

 
—

 
282,354

Term Loan C(1)
 
—

 
49,436

 
—

 
49,237

Revolver, $400 million
 
—

 
—

 
—

 
—

5.375% Senior secured notes due 2023
 
543,581

 
542,919

 
530,000

 
530,000

5.25% Senior secured notes due 2023
 
509,375

 
515,000

 
500,000

 
500,000

  
______________________________
(1)
Refinanced on February 22, 2017 by the New Term Loan B.
(2)
Excludes net unamortized debt issuance costs.