Financial Instruments

12 Months Ended

Dec. 31, 2017

Derivative Instrument Detail [Abstract]

Financial Instruments

NOTE 11.  FINANCIAL INSTRUMENTS

FAIR VALUE OF FINANCIAL INSTRUMENTS

Estimated fair values of our financial instruments as of December 31 are as follows: 

	2017						2016
(Dollars in thousands)	Carrying Amount			Fair Value			Carrying Amount			Fair Value
Cash and cash equivalents (Level 1)	$	120,457		$	120,457		$	82,584		$	82,584
Derivative assets related to interest rate    swaps (Level 2)	$	1,169		$	1,169		$	1,395		$	1,395
Derivative liabilities related to interest rate    swaps (Level 2)	$	—		$	—		$	(91	)	$	(91	)
Long-term debt, including current portion (Level 2):
Term loans	$	(343,500	)	$	(345,222	)	$	(349,500	)	$	(350,909	)
Senior notes		(149,528	)		(161,063	)		(149,271	)		(164,250	)
Revenue bonds		(65,735	)		(63,967	)		(65,735	)		(62,205	)
Medium-term notes		(17,250	)		(18,227	)		(22,250	)		(23,926	)
Total long-term debt1	$	(576,013	)	$	(588,479	)	$	(586,756	)	$	(601,290	)
Company owned life insurance (COLI) (Level 3)	$	1,996		$	1,996		$	70		$	70

¹ The carrying amount of long-term debt includes principal and unamortized discounts.

A framework has been established for measuring fair value, which provides a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The three levels of the fair value hierarchy are described below.

Level 1inputs to the valuation methodology are unadjusted quoted prices for identical assets or liabilities in   active markets.

Level 2inputs to the valuation methodology include:

• quoted prices for similar assets or liabilities in active markets;

• quoted prices for identical or similar assets or liabilities in inactive markets;

• inputs other than quoted prices that are observable for the asset or liability; and

• inputs that are derived principally from or corroborated by observable market data by correlation or other means.

Level 3 inputs to the valuation methodology are unobservable and significant to the fair value measurement.

If the asset or liability has a specified (contractual) term, the Level 2 input must correspond to substantially the full term of the asset or liability.

The fair value measurement level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. Valuation techniques used need to maximize the use of observable inputs and minimize the use of unobservable inputs.

• For cash and cash-equivalents, the carrying amount approximates fair value due to the short-term nature of these financial instruments.

• The fair value of the interest rate swaps was determined using discounted cash flow analysis on the expected cash flows of each derivative. The analysis reflects the contractual terms of the derivatives, including the period to maturity, and uses observable market-based inputs, including interest rate forward curves.

• The fair value of our long-term debt is estimated based upon the quoted market prices for the same or similar debt issues, or estimated based on average market prices for comparable debt when there is no quoted market price.

• The contract value of our COLI, the amount at which it could be redeemed, is used to estimate fair value because market prices are not readily available.

COMPANY OWNED LIFE INSURANCE

We are the beneficiary of insurance policies on the lives of certain current and past officers and employees. We have recognized the amount that could be realized upon surrender of the insurance policies in other assets in our Consolidated Balance Sheets. COLI expense and income are included in selling, general and administrative expenses and interest expense, respectively, in the Consolidated Statements of Income. The net effect of these amounts on income was not significant for the years ended December 31, 2017, 2016 and 2015. Cash receipts and disbursements are recorded as investing activities in the Consolidated Statements of Cash Flows.