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DERIVATIVE INSTRUMENTS AND FAIR VALUE MEASUREMENTS (Tables)
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12 Months Ended |
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Dec. 31, 2014
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| Derivative Instruments and Hedging Activities Disclosure [Abstract] |
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| Fair value of derivatives instruments |
The following table presents assets and liabilities that were measured at fair value in the Consolidated Balance Sheet on a recurring basis as of December 31, 2014 and 2013: | | | | | | | | | | | | | | | | | | December 31, | | 2014 | | 2013 | | | Assets (1) | | Liabilities (1) | | Assets (1) | | Liabilities (1) | Derivatives designated as cash flow hedging instruments: | | | | | | | | | Commodities futures and options (2) | | $ | — |
| | $ | 9,944 |
| | $ | 4,306 |
| | $ | 129 |
| Foreign exchange contracts (3) | | 2,196 |
| | 2,447 |
| | 2,813 |
| | — |
| Interest rate swap agreements (4) | | — |
| | 29,505 |
| | 22,745 |
| | — |
| Cross-currency swap agreement (5) | | 2,016 |
| | — |
| | — |
| | — |
| | | 4,212 |
| | 41,896 |
| | 29,864 |
| | 129 |
| Derivatives designated as fair value hedging instruments: | | | | | | | | | Interest rate swap agreements (4) | | 1,746 |
| | — |
| | — |
| | — |
| | | | | | | | | | Derivatives not designated as hedging instruments: | | | | | | | | | Deferred compensation derivatives (6) | | 1,074 |
| | — |
| | — |
| | — |
| Foreign exchange contracts (3) | | 4,049 |
| | 2,334 |
| | 610 |
| | 198 |
| | | 5,123 |
| | 2,334 |
| | 610 |
| | 198 |
| Total | | $ | 11,081 |
| | $ | 44,230 |
| | $ | 30,474 |
| | $ | 327 |
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| | (1) | Derivatives assets are classified on our balance sheet within prepaid expenses and other as well as other assets. Derivative liabilities are classified on our balance sheet within accrued liabilities and other long-term liabilities. |
| | (2) | The fair value of commodities futures and options contracts is based on quoted market prices and is, therefore, categorized as Level 1 within the fair value hierarchy. As of December 31, 2014, liabilities include the net of assets of $51,225 and liabilities of $56,840 associated with cash transfers receivable or payable on commodities futures contracts reflecting the change in quoted market prices on the last trading day for the period. The comparable amounts reflected on a net basis in liabilities at December 31, 2013 were assets of $23,780 and liabilities of $23,909. At December 31, 2014, the remaining amount reflected in liabilities related to the fair value of options contracts and other non-exchange traded derivative instruments. At December 31, 2013, the amount reflected in assets related to the fair value of options contracts. |
| | (3) | The fair value of foreign currency forward exchange contracts is the difference between the contract and current market foreign currency exchange rates at the end of the period. We estimate the fair value of foreign currency forward exchange contracts on a quarterly basis by obtaining market quotes of spot and forward rates for contracts with similar terms, adjusted where necessary for maturity differences. These contracts are classified as Level 2 within the fair value hierarchy. |
| | (4) | The fair value of interest rate swap agreements represents the difference in the present value of cash flows calculated at the contracted interest rates and at current market interest rates at the end of the period. We calculate the fair value of interest rate swap agreements quarterly based on the quoted market price for the same or similar financial instruments. Such contracts are categorized as Level 2 within the fair value hierarchy. |
| | (5) | The fair value of the cross-currency swap agreement is categorized as Level 2 within the fair value hierarchy and is estimated based on the difference between the contract and current market foreign currency exchange rates at the end of the period. |
| | (6) | The fair value of deferred compensation derivatives is based on quotes prices for market interest rates and a broad market equity index and is, therefore, categorized as Level 2 within the fair value hierarchy. |
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| Schedule of Carrying Values and Estimated Fair Values of Long-term Debt, including current portion |
The estimated fair value of our long-term debt is based on quoted market prices for similar debt issues and is, therefore, classified as Level 2 within the valuation hierarchy. The fair values and carrying values of long-term debt, including the current portion, was as follows: | | | | | | | | | | | | | | | | | | | | | | Fair Value | | Carrying Value | At December 31, | | 2014 | | 2013 | | 2014 | | 2013 | Current portion of long-term debt | | $ | 257,280 |
| | $ | 914 |
| | $ | 250,805 |
| | $ | 914 |
| Long-term debt | | 1,722,308 |
| | 1,947,023 |
| | 1,548,963 |
| | 1,795,142 |
| Total | | $ | 1,979,588 |
| | $ | 1,947,937 |
| | $ | 1,799,768 |
| | $ | 1,796,056 |
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| Effect of derivatives instruments on the Consolidated Statements of Income |
The effect of derivative instruments on the Consolidated Statements of Income for the years ended December 31, 2014 and December 31, 2013 was as follows: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Non-designated Hedges | | Cash Flow Hedges | | | | | | Gains (losses) recognized in income (a) | | Gains (losses) recognized in other comprehensive income (“OCI”) (effective portion) | | Gains (losses) reclassified from accumulated OCI into income (effective portion) (b) | | Gains recognized in income (ineffective portion) (c) | | | | | | | | | | | | | | | | | | | | 2014 | | 2013 | | 2014 | | 2013 | | 2014 | | 2013 | | 2014 | | 2013 | Commodities futures and options | | $ | 2,339 |
| | $ | — |
| | $ | (11,165 | ) | | $ | 84,746 |
| | $ | 68,500 |
| | $ | (8,400 | ) | | $ | 2,498 |
| | $ | 3,241 |
| Foreign exchange contracts | | (1,486 | ) | | — |
| | 2,056 |
| | 4,049 |
| | 3,403 |
| | 2,641 |
| | — |
| | — |
| Interest rate swap agreements | | — |
| | — |
| | (52,249 | ) | | 27,534 |
| | (4,500 | ) | | (3,606 | ) | | — |
| | — |
| Deferred compensation derivatives | | 2,983 |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| Total | | $ | 3,836 |
| | $ | — |
| | $ | (61,358 | ) | | $ | 116,329 |
| | $ | 67,403 |
| | $ | (9,365 | ) | | $ | 2,498 |
| | $ | 3,241 |
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| | (a) | Gains recognized in income for non-designated commodities futures and options contracts were included in cost of sales. Gains (losses) recognized in income for non-designated foreign currency forward exchange contracts and deferred compensation derivatives were included in selling, marketing and administrative expenses. |
| | (b) | Gains (losses) reclassified from AOCI into income were included in cost of sales for commodities futures and options contracts and for foreign currency forward exchange contracts designated as hedges of purchases of inventory or other productive assets. Other gains for foreign currency forward exchange contracts were included in selling, marketing and administrative expenses. For the year ended December 31, 2014, this included $3,801 relating to unrealized gains on foreign currency forward exchange contracts that were reclassified from AOCI to selling, marketing and administrative expenses as a result of the discontinuance of cash flow hedge accounting because it was determined to be probable that the original forecasted transactions would not occur within the time period originally designated or the subsequent two months thereafter. Losses reclassified from AOCI into income for interest rate swap agreements were included in interest expense. |
| | (c) | Gains representing hedge ineffectiveness were included in cost of sales for commodities futures and options contracts. |
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