Fair Value of Financial Instruments

3 Months Ended

Mar. 31, 2014

Fair Value of Financial Instruments [Abstract]

Fair Value of Financial Instruments [Text Block]

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, 2014, 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, Australian dollar 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, 2014 and December 31, 2013 (dollars in thousands):



	March 31, 2014		December 31, 2013
Financial instruments carried at fair value using Level 2 inputs:
Financial assets carried at fair value:
Interest rate swap agreements	$	25,869	$	36,987
Cross-currency swap agreement	12,495		16,056
Total financial assets carried at fair value	$	38,364	$	53,043
Financial liabilities carried at fair value:
Interest rate swap agreements	$	2,921	$	2,439
Total financial liabilities carried at fair value	$	2,921	$	2,439

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, 2014 and December 31, 2013 (dollars in thousands):



	March 31, 2014				December 31, 2013
	Carrying Value		Fair Value		Carrying Value		Fair Value
Financial liabilities carried at historical cost:
Revolving credit facility	$	16,302	$	16,305	$	15,949	$	15,956
United States term loan	1,418,579		1,415,660		1,433,414		1,429,204
Australian term loan	106,401		106,832		134,436		135,491
Amortizing notes component of TEUs	19,249		19,157		21,878		21,698
Other debt	19,028		18,997		19,035		18,996
Total	$	1,579,559	$	1,576,951	$	1,624,712	$	1,621,345

Credit Facilities

On March 28, 2013, the Company entered into Amendment No. 1 (the Amendment Agreement) to its Credit Agreement, which provided for a 0.25% reduction in the applicable margins for the Company’s existing term loans and loans under its revolving credit facility.

As of March 31, 2014, the Company’s $425.0 million revolving credit facility consisted of $16.3 million in borrowings, $3.2 million in letter of credit guarantees and $405.5 million of unused borrowing capacity. As of March 31, 2014, the Company had outstanding revolving loans of $11.0 million in the United States with an interest rate of 1.90% and €3.9 million in Europe (or $5.3 million at the exchange rate on March 31, 2014) with an interest rate of 1.97%.

During the three months ended March 31, 2014, the Company made prepayments on its Australian term loan of A$34.0 million (or $30.5 million at the average exchange rates during the periods in which paid). As of March 31, 2014, the Company had outstanding term loans of $1.4 billion in the United States with an interest rate of 1.90% and A$114.8 million in Australia (or $106.4 million at the exchange rate on March 31, 2014) with an interest rate of 4.44%.

- 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.

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