Financial Instruments

3 Months Ended

Mar. 31, 2013

Financial Instruments [Abstract]

FINANCIAL INSTRUMENTS

3. FINANCIAL INSTRUMENTS

The following describe the financial instruments held by the Company at March 31, 2013, and December 31, 2012, and the methods and assumptions used to estimate the instruments’ fair values:

Cash and cash equivalents

Carrying value approximates fair value because of the short maturity of the instruments.

Derivative assets and liabilities

Derivative assets and liabilities included the foreign currency exchange and interest rate contracts discussed in Note 4. Fair value and carrying value were the same because the contracts were recorded at fair value. The fair values of the foreign currency contracts were calculated as the difference between the applicable forward foreign exchange rates at the reporting date and the contracted foreign exchange rates multiplied by the contracted notional amounts. The fair values of the interest rate swaps were calculated as the difference between the contracted swap rate and the current market replacement swap rate multiplied by the present value of one basis point for the notional amount of the contract. See the tables that follow these financial instrument descriptions for the reported fair values of derivative assets and liabilities.

Long-term investments

Long-term investments included the mutual fund assets the Company held at the reporting dates to fund a portion of its deferred compensation liabilities and all of its non-qualified supplemental executive defined contribution obligations (see the defined contribution plans section of Note 8). Fair value and carrying value were the same because the mutual fund assets were recorded at fair value in accordance with the fair value option rules set forth in the Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) Topic 825, Financial Instruments. Fair values for the mutual funds were calculated using the published market price per unit at the reporting date multiplied by the number of units held at the reporting date. See the tables that follow these financial instrument descriptions for the reported fair value of long-term investments.

Debt obligations

The fair value of debt with original maturities greater than one year comprised the combined present values of scheduled principal and interest payments for each of the various loans, individually discounted at rates equivalent to those which could be obtained by the Company for new debt issues with durations equal to the average life to maturity of each loan. The fair values of the remaining Company debt obligations approximated their carrying values due to the short-term nature of the debt. The Company’s fair value measurements for debt fall in level 2 of the fair value hierarchy.

At March 31, 2013, and December 31, 2012, the fair value of debt and the related carrying values, including current maturities, were as follows:

(In thousands)	March 31, 2013		December 31, 2012
Fair value	$	207,004	$	194,620
Carrying value		193,916		182,402

The following tables present financial assets and liabilities measured on a recurring basis at fair value as of March 31, 2013, and December 31, 2012, and the level within the fair value hierarchy in which the fair value measurements fall:

(In thousands)	March 2013		Level 1		Level 2		Level 3
Mutual fund assets	$	15,425	$	15,425	$	—	$	—
Derivative assets:
Foreign currency contracts		10		—		10		—
Total assets at fair value	$	15,435	$	15,425	$	10	$	—
Derivative liabilities:
Foreign currency contracts	$	15	$	—	$	15	$	—
Interest rate contracts		43		—		43		—
Total liabilities at fair value	$	58	$	—	$	58	$	—

(In thousands)	December 2012		Level 1		Level 2		Level 3
Mutual fund assets	$	14,093	$	14,093	$	—	$	—
Derivative assets:
Foreign currency contracts		67		—		67		—
Total assets at fair value	$	14,160	$	14,093	$	67	$	—
Derivative liabilities :
Foreign currency contracts	$	2	$	—	$	2	$	—
Interest rate contracts		57		—		57		—
Total liabilities at fair value	$	59	$	—	$	59	$	—