FINANCING ARRANGEMENTS

The following table is a summary of the Company’s financing arrangements (in thousands):



Current Obligations:	March 31, 2019			December 31, 2018
Senior secured Term Loan Agreement ("Term Loan Agreement")	$	7,535		$	7,535

Long-Term Obligations:
Senior secured Term Loan Agreement due June 30, 2024	$	732,813		$	734,697
Senior unsecured notes, at 5.125%, due June 1, 2021 ("2021 Notes")	845,000			845,000
Long-term obligations, at par	$	1,577,813		$	1,579,697
Unamortized debt issuance costs and premium, net	(13,808		)	(14,676		)
Long-term obligations, at carrying value	$	1,564,005		$	1,565,021

Financing Activities

At March 31, 2019 and December 31, 2018, the fair value of the Term Loan Agreement debt was $738.5 million and $707.0 million, respectively, based on quoted market prices or other available market data. At March 31, 2019 and December 31, 2018, the fair value of the Company's 2021 Notes was $846.1 million and $845.0 million, respectively, based on quoted market prices for the instrument. The fair values of the Company's currently outstanding term loans under the Term Loan Agreement (the "Term Loans") and 2021 Notes are considered Level 2 measures according to the fair value hierarchy.

The Company also maintains a $400.0 million revolving credit facility under which the Company had no outstanding loan balance as of March 31, 2019 and December 31, 2018. At March 31, 2019, approximately $209.1 million was available to borrow and outstanding letters of credit were $153.3 million. At December 31, 2018, $235.4 million was available to borrow and outstanding letters of credit were $130.1 million.

Cash Flow Hedges

The Company’s strategy to hedge against fluctuations in variable interest rates involves entering into interest rate derivative agreements. Although the interest rate on all $740.3 million aggregate principal amount of Term Loans which were outstanding on March 31, 2019 is variable under the Term Loan Agreement, the Company has effectively fixed the interest rate on $350.0 million aggregate principal amount of the Term Loans outstanding by entering into interest rate swap agreements with a notional amount of $350.0 million. Under the terms of the interest rate swap agreements, the Company receives interest based on the one-month LIBOR index and pays interest at a weighted average rate of approximately 2.92%. When combined with the 1.75% interest rate margin for Eurocurrency borrowings, the effective annual interest rate on such $350.0 million aggregate principal amount of Term Loans is therefore approximately 4.67%.

The Company recognizes derivative instruments as either assets or liabilities on the balance sheet at fair value. No ineffectiveness has been identified on these swaps and, therefore, all unrealized changes in fair value are recorded in accumulated other comprehensive loss. Amounts are reclassified from accumulated other comprehensive loss into interest expense on the statement of operations in the same period or periods during which the hedged transaction affects earnings.

As of March 31, 2019 and December 31, 2018, the Company has recorded a derivative liability with a fair value of $13.4 million and $8.8 million, respectively, within accrued expenses in connection with these cash flow hedges.

The fair value of the interest rate swaps included in the Level 2 tier of the fair value hierarchy is calculated using discounted cash flow valuation methodologies based upon the one-month LIBOR yield curves that are observable at commonly quoted intervals for the full term of the swaps. Level 2 utilizes quoted market prices in markets that are not active, broker or dealer quotations, or alternative pricing sources with reasonable levels of price transparency for similar assets and liabilities.