Note 9 - Fair Value Measurements

12 Months Ended

Dec. 31, 2017

Notes to Financial Statements

Fair Value Disclosures [Text Block]

9

.    Fair Value Measurements

Assets and Liabilities Measured at Fair Value on a Recurring Basis

Our assets and liabilities measured at fair value are based on valuation techniques which consider prices and other relevant information generated by market transactions involving identical or comparable assets and liabilities. These valuation methods are based on either quoted market prices (Level

1

) or inputs, other than quoted prices in active markets, that are observable either directly or indirectly (Level

2

). The following are assets and liabilities measured at fair value on a recurring basis (in millions):

	Asset/(Liability) Balance
	December 31,
	2017			2016			Input Level
Trading investments	$	16.4		$	14.9			1
Interest rate swaps	$	(1.4	)	$	2.9			2
Senior notes, net of unamortized discount and debt issuance costs	$	(595.6	)	$	(599.0	)		2

The fair value of trading investments has been measured using the market approach (Level

1

) and reflect quoted market prices. The fair values of interest rate swaps and corresponding senior notes have been measured using the income approach (Level

2

), which include relevant interest rate curve inputs. Trading investments

are classified in other assets in our Consolidated Balance Sheets. Depending on their period end fair value, interest rate swaps are classified in other assets or other long-term liabilities in our Consolidated Balance Sheets. The senior notes are classified in long-term debt in our Consolidated Balance Sheets.

Financial Instruments

The carrying

amount of our senior revolving line of credit and remaining senior notes

not

measured at fair value on a recurring basis was

$490.0

million and

$387.3

million at

December 31, 2017

and

2016,

respectively. The estimated fair value of these liabilities using the income approach (Level

2

), based on their net present value, discounted at our current borrowing rate, was

$506.3

million and

$402.3

million at

December 31, 2017

and

2016,

respectively.

In

2017,

we remeasured a

n advance deposit previously made for the purchase of new trailing equipment from a carrying amount of

$20.2

million to a fair value of

zero

, due the manufacturer

not

being able to meet delivery. The resulting charge is included in general and administrative expenses, net of asset dispositions in our Consolidated Statements of Earnings. The carrying amounts of all other instruments at

December 31, 2017

and

2016,

approximate their fair value due to the short maturity of these instruments.