Financial Instruments

9 Months Ended

Sep. 30, 2018

Financial Instruments (Thousands of Dollars) [Abstract]

(6) Financial Instruments

The Company's financial instruments include cash and cash equivalents, accounts receivable, short-term borrowings, accounts payable and certain accrued liabilities. At September 30, 2018, October 1, 2017 and December 31, 2017, the carrying cost of these instruments approximated their fair value. The Company's financial instruments at September 30, 2018, October 1, 2017 and December 31, 2017 also include certain assets and liabilities measured at fair value (see Notes 8 and 10) as well as long-term borrowings. The carrying costs, which are equal to the outstanding principal amounts, and fair values of the Company's long-term borrowings as of September 30, 2018, October 1, 2017 and December 31, 2017 are as follows:

	September 30, 2018				October 1, 2017				December 31, 2017
	Carrying		Fair		Carrying		Fair		Carrying		Fair
	Cost		Value		Cost		Value		Cost		Value
6.35% Notes Due 2040	$	500,000		546,450		500,000		613,750		500,000		601,800
3.50% Notes Due 2027		500,000		466,350		500,000		496,850		500,000		488,300
5.10% Notes Due 2044		300,000		285,390		300,000		324,300		300,000		313,320
3.15% Notes Due 2021		300,000		297,720		300,000		306,840		300,000		302,640
6.60% Debentures Due 2028		109,895		124,698		109,895		132,830		109,895		131,390
Total long-term debt	$	1,709,895		1,720,608		1,709,895		1,874,570		1,709,895		1,837,450
Less: Deferred debt expenses		15,174		-		16,634		-		16,286		-
Long-term debt	$	1,694,721		1,720,608		1,693,261		1,874,570		1,693,609		1,837,450

The fair values of the Company's long-term debt are considered Level 3 fair values (see Note 8 for further discussion of the fair value hierarchy) and are measured using the discounted future cash flows method. In addition to the debt terms, the valuation methodology includes an assumption of a discount rate that approximates the current yield on a similar debt security. This assumption is considered an unobservable input in that it reflects the Company's own assumptions about the inputs that market participants would use in pricing the asset or liability. The Company believes that this is the best information available for use in the fair value measurement.