Fair value of financial instruments

9 Months Ended

Sep. 30, 2015

Investments, Debt and Equity Securities [Abstract]

Fair value of financial instruments

Fair value of financial instruments

Investments in Available-for-sale Securities

We have investments in mutual funds designated as available-for-sale securities that are carried at fair value in the financial statements.  For these investments, fair value was estimated based on quoted prices categorized as a Level 1 valuation.  Valuation levels were defined in our 2014 Form 10-K.

We had mutual funds denominated in Argentine pesos of $12.4 million at September 30, 2015 and $6.2 million at December 31, 2014.

Fixed-Rate Debt

The fair value and carrying value of our fixed-rate debts are as follows:

(In millions)	September 30, 2015		December 31, 2014
Unsecured notes issued in a private placement
Carrying value	$	92.9	100.0
Fair value	96.0		105.6

The fair value estimate of our unsecured private-placement notes is based on the present value of future cash flows, discounted at rates for similar instruments at the respective measurement dates, which we have categorized as a Level 3 valuation.

There were no transfers in or out of any of the levels of the valuation hierarchy in the first nine months of 2015.

Other Financial Instruments

Other financial instruments include cash and cash equivalents, accounts receivable, floating rate debt, accounts payable and accrued liabilities.  The financial statement carrying amounts of these items approximate the fair value.

We have outstanding foreign currency forward and swap contracts to hedge transactional risks associated with foreign currencies.  Our short term contracts have a weighted average maturity of approximately one month.  In 2013, we entered into a cross-currency swap to hedge against the change in value of a long-term intercompany loan denominated in a currency other than the lending subsidiary’s functional currency.  The fair values of these currency contracts, including the cross-currency swap, are determined using Level 2 valuation techniques and are based on the present value of net future cash payments and receipts.  Accordingly, the fair values will fluctuate based on changes in market interest rates and the respective foreign currency to U.S. dollar exchange rate.  The fair values of our outstanding short-term foreign currency contracts at September 30, 2015, were not significant.  At September 30, 2015, the fair value of the cross-currency swap was a net asset of $8.2 million.  There were no transfers in or out of any of the levels of the valuation hierarchy in the first nine months of 2015.