Derivative Financial Instruments and Fair Value Measurement (Tables)

6 Months Ended

Jun. 30, 2015

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Summary of Interest Rate Swap Agreements

The following table summarizes the terms of the interest rate swap agreements as of June 30, 2015:

Fixed Interest Rates	Expiration Date	Notional Amount
		(In thousands)
2.75% to 3.19%	March 31, 2017	$	650,000

Derivatives Recorded at Fair Value in Consolidated Balance Sheets

As of June 30, 2015 and December 31, 2014, derivatives recorded at fair value in our unaudited condensed consolidated balance sheets were as follows:

	Derivative assets				Derivative liabilities
	June 30, 2015		December 31, 2014		June 30, 2015		December 31, 2014
	(In thousands)
Derivatives designated as Hedging Instruments
Foreign currency contracts - current (1)	$	644	$	1,159	$	—	$	—
Derivatives not designated as Hedging Instruments
Interest rate swap contracts - current (1)	—		—		17,219		17,562
Commodities contracts - current (1)	—		—		4,834		9,886
Interest rate swap contracts - noncurrent (2)	—		—		9,744		13,853
Total derivatives	$	644	$	1,159	$	31,797	$	41,301

(1) Derivative assets and liabilities that have settlement dates equal to or less than 12 months from the respective balance sheet date were included in prepaid expenses and other current assets and accounts payable and accrued expenses, respectively, in our unaudited condensed consolidated balance sheets.

(2) Derivative liabilities that have settlement dates greater than 12 months from the respective balance sheet date were included in other long-term liabilities in our unaudited condensed consolidated balance sheets.

Gains and Losses on Derivatives Designated as Cash Flow Hedges

Gains and losses on derivatives designated as cash flow hedges reclassified from accumulated other comprehensive loss into income for the three and six months ended June 30, 2015 and 2014 were as follows:

	Three months ended June 30,						Six months ended June 30,
	2015			2014			2015			2014
	(In thousands)
Losses/(gains) on foreign currency contracts (1)	$	(347	)	$	148		$	(359	)	$	308
Losses/(gains) on commodities contracts (2)	—			(354		)	—			(1,177		)

(1) Recorded in cost of goods sold in our unaudited condensed consolidated statements of income.

(2) Recorded in distribution expense or cost of goods sold, depending on commodity type, in our unaudited condensed consolidated statements of income.

Summary of Derivatives Assets and Liabilities Measured at Fair Value on Recurring Basis

A summary of our financial assets and liabilities subject to recurring fair value measurements and the basis for that measurement according to the levels in the fair value hierarchy as of June 30, 2015 and December 31, 2014 is as follows:

	Fair value as of June 30, 2015		Level 1		Level 2		Level 3
	(In thousands)
Assets:
Cash equivalents	$	23	$	23	$	—	$	—
Supplemental Executive Retirement Plan investments	3,164		3,164		—		—
Foreign currency contracts	644		—		644		—
Deferred compensation investments	4,566		—		4,566		—
	$	8,397	$	3,187	$	5,210	$	—
Liabilities:
Senior unsecured notes	$	530,000	$	530,000	$	—	$	—
Commodities contracts	4,834		—		4,834		—
Interest rate swap contracts	26,963		—		26,963		—
	$	561,797	$	530,000	$	31,797	$	—

As of June 30, 2015, we had no transfers between Level 1 and Level 2. New derivative contracts transacted during the six months ended June 30, 2015 were included in Level 2.

	Fair value as of December 31, 2014		Level 1		Level 2		Level 3
	(In thousands)
Assets:
Cash equivalents	$	25	$	25	$	—	$	—
Supplemental Executive Retirement Plan investments	2,635		2,635		—		—
Foreign currency contracts	1,159		—		1,159		—
Deferred compensation investments	4,674		—		4,674		—
	$	8,493	$	2,660	$	5,833	$	—
Liabilities:
Senior unsecured notes	$	516,250	$	516,250	$	—	$	—
Commodities contracts	9,886		—		9,886		—
Interest rate swap contracts	31,415		—		31,415		—
	$	557,551	$	516,250	$	41,301	$	—