DEBT

The following table summarizes the components of Long-term borrowings and capital lease obligations:



(in millions)	March 31, 2018		December 31, 2017
Amended 2016 Credit Agreement ^(a)	$	266.5	$	277.0
Capital lease obligations	0.8		0.7
Total long-term borrowings and capital lease obligations, including current portion	267.3		277.7
Less: Current capital lease obligations	0.3		0.3
Total long-term borrowings and capital lease obligations	$	267.0	$	277.4


(a)	Defined as the Amended and Restated Credit Agreement, dated January 27, 2016, as amended on June 2, 2017.

As more fully described within Note 11 – Fair Value Measurements, the Company uses a three-level fair value hierarchy that prioritizes the inputs used to measure fair value. The fair value of long-term debt is based on interest rates that we believe are currently available to us for issuance of debt with similar terms and remaining maturities (Level 2 input).

The following table summarizes the carrying amounts and estimated fair values of the Company’s long-term borrowings:



	March 31, 2018				December 31, 2017
(in millions)	Notional Amount		Fair Value		Notional Amount		Fair Value
Long-term borrowings^(a)	$	267.3	$	267.3	$	277.7	$	277.7


(a)	Long-term borrowings includes current portions of long-term debt and current portions of capital lease obligations of $0.3 million and $0.3 million as of March 31, 2018 and December 31, 2017, respectively.

Borrowings under the Amended 2016 Credit Agreement bear interest, at the Company’s option, at a base rate or a LIBOR rate, plus, in each case, an applicable margin. The applicable margin ranges from 0.00% to 1.25% for base rate borrowings and 1.00% to 2.25% for LIBOR borrowings. The Company must also pay a commitment fee to the lenders ranging between 0.15% to 0.30% per annum on the unused portion of the $400.0 million revolving credit facility along with other standard fees. Letter of credit fees are payable on outstanding letters of credit in an amount equal to the applicable LIBOR margin plus other customary fees.

The Company is subject to certain leverage ratio and interest coverage ratio financial covenants under the Amended 2016 Credit Agreement that are to be measured at each fiscal quarter-end. The Company was in compliance with all such covenants as of March 31, 2018.

As of March 31, 2018, there was $266.5 million of cash drawn and $12.7 million of undrawn letters of credit under the Amended 2016 Credit Agreement, with $120.8 million of net availability for borrowings. As of December 31, 2017, there was $277.0 million cash drawn and $17.1 million of undrawn letters of credit under the Amended 2016 Credit Agreement, with $105.9 million of net availability for borrowings.

As of March 31, 2018 and December 31, 2017, there were no borrowings against the Company’s non-U.S. lines of credit which provide for borrowings of up to $0.2 million.

For the three months ended March 31, 2018, gross borrowings under the Amended 2016 Credit Agreement were $8.0 million, while there were $16.6 million of gross payments. For the three months ended March 31, 2017, there were no gross borrowings or gross payments under the 2016 Credit Agreement.

Interest Rate Swap

On June 2, 2017, the Company entered into an interest rate swap (the “Swap”) with a notional amount of $150.0 million, as a means of fixing the floating interest rate component on $150.0 million of its variable-rate debt. The Swap is designated as a cash flow hedge, with a termination date of June 2, 2020. As a result of the application of hedge accounting treatment, all unrealized gains and losses related to the derivative instrument are recorded in Accumulated other comprehensive loss and are reclassified into operations in the same period in which the hedged transaction affects earnings. Hedge effectiveness is tested quarterly. We do not use derivative instruments for trading or speculative purposes.

As more fully described within Note 11 – Fair Value Measurements, the Company uses a three-level fair value hierarchy that prioritizes the inputs used to measure fair value. The fair value of the Swap is derived from a discounted cash flow analysis based on the terms of the contract and the interest rate curve (Level 2 inputs) and measured on a recurring basis in our Consolidated Balance Sheet. At March 31, 2018, the fair value of the Swap, included in Deferred charges and other assets on the Condensed Consolidated Balance Sheets, was $2.6 million. During the three months ended March 31, 2018, an unrealized pre-tax gain of $1.0 million was recorded in Accumulated other comprehensive income.