Financial Instruments

12 Months Ended

Dec. 31, 2015

NOTE 17. FINANCIAL INSTRUMENTS

We do not hold or issue financial instruments for trading purposes. The estimated fair values of our financial instruments are as follows:



	December 31, 2015		December 31, 2014
	Carrying amount	Estimated fair value	Carrying amount	Estimated fair value
Assets/(Liabilities), net:
Total debt, including current portion	($1,003.0)	($994.1)	($1,042.6)	($1,028.2)
Foreign currency contracts	6.2	6.2	5.4	5.4
Natural gas contracts	(0.8)	(0.8)	(3.0)	(3.0)
Interest rate swap contracts	(10.6)	(10.6)	(9.3)	(9.3)

The carrying amounts of cash and cash equivalents, receivables, accounts payable, accrued expenses, and short-term debt approximate fair value because of the short-term maturity of these instruments. The fair value estimates of long-term debt were primarily based upon quotes from a major financial institution of recently observed trading levels of our Term Loan B debt. The fair value estimates of foreign currency contract obligations are estimated from market quotes provided by a well-recognized national market data provider. The fair value estimates of natural gas contracts are estimated using internal valuation models with verification by obtaining quotes from major financial institutions. For natural gas swap transactions, fair value is calculated using NYMEX market quotes provided by a well-recognized national market data provider. For natural gas option based strategies, fair value is calculated using an industry standard Black-Scholes model with market based inputs, including but not limited to, underlying asset price, strike price, implied volatility, discounted risk free rate and time to expiration, provided by a well-recognized national market data provider. The fair value estimates for interest rate swap contracts are estimated by obtaining quotes from major financial institutions with verification by internal valuation models. Refer to Note 18 for a discussion of the fair value and the related inputs used to measure fair value.

The fair value measurement of assets and liabilities is summarized below:



	December 31, 2015		December 31, 2014
	Fair value based on		Fair value based on
	Quoted, active markets	Other observable inputs	Quoted, active markets	Other observable inputs
	Level 1	Level 2	Level 1	Level 2
Assets/(Liabilities), net:
Total debt, including current portion	($457.4)	($536.7)	($459.8)	($568.4)
Foreign currency contracts	6.2	-	5.4	-
Natural gas contracts	-	(0.8)	-	(3.0)
Interest rate swap contracts	-	(10.6)	-	(9.3)

We do not have any financial assets or liabilities that are valued using Level 3 (unobservable) inputs.