Financial Instruments (Tables)

9 Months Ended

Sep. 30, 2015

Derivative Instrument Detail [Abstract]

Fair Value, by Balance Sheet Grouping

The following table presents the estimated fair values of our financial instruments:

	September 30, 2015				December 31, 2014
(Dollars in thousands)	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Cash and short-term investments (Level 1)	$	1,346	$	1,346	$	31,012	$	31,012
Derivative asset related to interest rate swaps (Level 2)	$	1,522	$	1,522	$	793	$	793
Long-term debt, including fair value adjustments related to fair value hedges (Level 2)	$	630,175	$	653,029	$	629,343	$	657,943
Company owned life insurance asset (COLI) (Level 3)	$	1,906	$	1,906	$	877	$	877

Fair Values of Derivative Instruments

The following table presents the gross fair values of derivative instruments on our Condensed Consolidated Balance Sheets:

(Dollars in thousands)	Location	September 30, 2015		December 31, 2014
Derivatives designated as hedging instruments:
Interest rate contracts	Current assets	$	112	$	372
Interest rate contracts	Non-current assets	1,410		421
Total derivatives designated as hedging instruments		$	1,522	$	793

Effect of Derivatives on Consolidated Condensed Statements of Income

The following table details the effect of derivatives on our Consolidated Statements of Income:

		Gain Recognized in Income
	Location	Quarter Ended   September 30,				Nine Months Ended   September 30,
(Dollars in thousands)		2015		2014		2015		2014
Derivatives designated in fair value hedging relationships:
Realized gain on interest rate contract 1	Interest expense	$	385	$	239	$	1,173	$	740
Net gain recognized in income from fair value hedges		$	385	$	239	$	1,173	$	740

¹Realized gain on hedging instrument consists of net cash settlements and interest accruals on the interest rate swaps during the periods. Net cash settlements are included in the supplemental cash flow information within interest, net of amounts capitalized in the Condensed Consolidated Statements of Cash Flows.