Fair Value of Financial Instruments

3 Months Ended

Mar. 31, 2013

Fair Value of Financial Instruments [Abstract]

Fair Value of Financial Instruments

FAIR VALUE OF FINANCIAL INSTRUMENTS:

The following methods and assumptions were used to estimate the fair value of each class of financial instrument held by the Company:

• Financial Instruments Carried at Fair Value: Derivative instruments are recorded on the balance sheet as either assets or liabilities measured at fair value. As of March 31, 2013, the Company's derivative financial instruments consisted of interest rate swap agreements and cross-currency swap agreements. The Company estimated the fair value of its interest rate swap agreements based on Level 2 valuation inputs, including fixed interest rates, LIBOR implied forward interest rates and the remaining time to maturity. The Company estimated the fair value of its cross-currency swap agreements based on Level 2 valuation inputs, including LIBOR implied forward interest rates, AUD BBSW implied forward interest rates and the remaining time to maturity.

• Financial Instruments Carried at Historical Cost: Since the Company's long-term debt is not actively traded, fair value was estimated using a discounted cash flow analysis based on Level 2 valuation inputs, including borrowing rates the Company believes are currently available to it for loans with similar terms and maturities.

The following table presents the Company's financial instruments that are carried at fair value using Level 2 inputs at March 31, 2013 and December 31, 2012 (dollars in thousands):

	March 31, 2013		December 31, 2012
Financial instruments carried at fair value using Level 2 inputs:
Interest rate swap agreements	$	10,274	$	4,227
Cross-currency swap agreement	—		255
Total financial assets carried at fair value	$	10,274	$	4,482
Interest rate swap agreements	3,310		4,659
Cross-currency swap agreement	165		143
Total financial liabilities carried at fair value	$	3,475	$	4,802

The following table presents the carrying value and fair value using Level 2 inputs of the Company’s financial instruments carried at historical cost at March 31, 2013 and December 31, 2012 (dollars in thousands):

	March 31, 2013				December 31, 2012
	Carrying Value		Fair Value		Carrying Value		Fair Value
Financial liabilities carried at historical cost:
Revolving credit facility	$	14,653	$	14,769	$	25,153	$	25,222
United States term loan	1,539,700		1,550,939		1,576,100		1,562,385
Canadian term loan	—		—		14,446		14,353
Australian term loan	188,461		191,668		190,100		191,057
Amortizing notes component of TEUs	29,590		28,822		32,435		31,484
Other debt	19,871		20,026		19,901		19,759
Total	$	1,792,275	$	1,806,224	$	1,858,135	$	1,844,260

Credit Facilities

During the three months ended March 31, 2013, the Company prepaid in full its Canadian term loan, which resulted in the write-off of unamortized deferred financing costs of $0.5 million.

On March 28, 2013, the Company entered into Amendment No. 1 (the Amendment Agreement) to its New Credit Agreement dated as of October 1, 2012, which provides for a 0.25% reduction in the applicable margins for the Company's existing term loans and loans under its revolving credit facility.