Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2017

Schedule of other financial instruments measured at fair value on a recurring basis

The following tables provide additional information relating to other financial instruments measured at fair value on a recurring basis (in thousands):



	Fair Value Measurements at March 31, 2017 Using
	Level 1		Level 2 ⁽¹⁾		Level 3		Total		Valuation Approach
Assets:
Interest rate swaps	$	—	$	569	$	—	$	569	(c)

Liabilities:
Foreign exchange contracts	$	—	$	23,547	$	—	$	23,547	(c)
Interest rate swaps	—		362		—		362		(c)
Total liability	$	—	$	23,340	$	—	$	23,340



	Fair Value Measurements at December 31, 2016 Using
	Level 1		Level 2 ⁽¹⁾		Level 3		Total		Valuation Approach
Assets:
Interest rate swaps	$	—	$	451	$	—	$	451	(c)

Liabilities:
Foreign exchange contracts	—		38,170		—		38,170		(c)
Interest rate swaps	—		751		—		751		(c)
Total net liability	$	—	$	38,470	$	—	$	38,470

(1)

Unless otherwise indicated, the fair value of our Level 2 derivative instruments reflects our best estimate and is based upon exchange or over-the-counter quotations whenever they are available. Quoted valuations may not be available due to location differences or terms that extend beyond the period for which quotations are available. Where quotes are not available, we utilize other valuation techniques or models to estimate market values. These modeling techniques require us to make estimations of future prices, price correlation and market volatility and liquidity based on market data. Our actual results may differ from our estimates, and these differences could be positive or negative. See Note 14 for further discussion on fair value of our derivative instruments.

Schedule of carrying values and estimated fair values of long-term debt

The carrying values and estimated fair values of our long-term debt are as follows (in thousands):



	March 31, 2017				December 31, 2016
	Carrying Value ⁽¹⁾		Fair Value ⁽²⁾		Carrying Value ⁽¹⁾		Fair Value ⁽²⁾

Term Loan (matures June 2018)	$	185,849	$	187,475	$	192,258	$	192,258
Nordea Q5000 Loan (matures April 2020)	187,500		184,806		196,429		192,746
MARAD Debt (matures February 2027)	80,149		93,644		83,222		92,049
2022 Notes (mature May 2022)	125,000		123,750		125,000		130,156
2032 Notes (mature March 2032)	60,115		60,265		60,115		59,965
Total debt	$	638,613	$	649,940	$	657,024	$	667,174


(1)	Carrying value includes current maturities and excludes the related unamortized debt discount and debt issuance costs. See Note 6 for additional disclosures on our long-term debt.

(2)

The estimated fair value of the 2022 Notes and the 2032 Notes was determined using Level 1 inputs under the market approach. The fair value of the Term Loan, the Nordea Q5000 Loan and the MARAD Debt was estimated using Level 2 fair value inputs under the market approach. The fair value of the Term Loan, the Nordea Q5000 Loan and the MARAD Debt was determined using a third party evaluation of the remaining average life and outstanding principal balance of the indebtedness as compared to other obligations in the marketplace with similar terms.