Fair Value Measurements

12 Months Ended

Dec. 31, 2019

The following table presents the carrying amount, estimated fair values and categorization under the fair value hierarchy for financial instruments held by the Company at December 31, 2019 and 2018, using market information and what management believes to be appropriate valuation methodologies discussed in further detail below:



	December 31, 2019						December 31, 2018
	Carrying Amount		Fair Value (c)				Carrying Amount		Fair Value (c)
	Carrying Amount		Level 1		Level 2		Carrying Amount		Level 1		Level 2
Assets:
Cash and cash equivalents	$	64,025	$	64,025	$	—	$	108,966	$	108,966	$	—
Interest rate swaps (a)	$	—	$	—	$	—	$	2,131	$	—	$	2,131
Foreign currency forward contracts (a)	$	5,108	$	—	$	5,108	$	7	$	—	$	7

Liabilities (b):
Interest rate swaps (a)	$	639	$	—	$	639	$	—	$	—	$	—
Foreign currency forward contracts (a)	$	1,115	$	—	$	1,115	$	19,873	$	—	$	19,873
Fixed-rate long-term debt	$	585,027	$	—	$	465,449	$	585,824	$	—	$	541,267
Variable-rate long-term debt	$	494,299	$	—	$	498,875	$	599,221	$	—	$	602,652

(a) These items represent derivative instruments.

(b) Liabilities excludes finance lease obligation.

The Company uses the following methods and assumptions in estimating the fair value of its financial instruments:

Cash and cash equivalents — The carrying amount is equal to fair market value.

Derivative instruments — The fair value is calculated based on standard valuation models using quoted prices and market observable data of similar instruments. The interest rate derivatives are based on the LIBOR swap rate, which is observable at commonly quoted intervals for the full term of the swap and therefore is considered Level 2. The foreign currency derivatives are contracts to buy foreign currency at a fixed rate on a specified future date. The foreign exchange rate is observable for the full term of the swap and is therefore considered Level 2. See Note 12 — Derivative Instruments for additional information related to the derivative instruments.

Debt — The fair value of fixed rate debt is based upon quoted market prices for debt with similar terms and maturities. The variable rate debt adjusts with changes in the market rate, therefore the carrying value approximates fair value.

- 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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