Fair Value Measurements and Derivative Instruments (Tables)

6 Months Ended

Jun. 30, 2013

Fair Value Measurements and Derivative Instruments

Estimated Fair Value of Financial Instruments that are not Measured at Fair Value on Recurring Basis

The estimated fair value of our financial instruments that are not measured at fair value on a recurring basis, categorized based upon the fair value hierarchy, are as follows (in thousands):

	Fair Value Measurementsat June 30, 2013 Using								Fair Value Measurementsat December 31, 2012 Using
Description	Total		Level 1(1)		Level 2(2)		Level 3(3)		Total		Level 1(1)		Level 2(2)		Level 3(3)
Assets:
Cash and cash equivalents(4)	$	205,174	205,174		—		—		$	194,855	194,855		—		—
Total Assets	$	205,174	$	205,174	$	—	$	—	$	194,855	$	194,855	$	—	$	—
Liabilities:
Long-term debt (including current portion of long-term debt)(5)	$	8,571,141	3,215,109		5,356,032		—		$	8,859,310	3,917,398		4,941,912		—
Total Liabilities	$	8,571,141	$	3,215,109	$	5,356,032	$	—	$	8,859,310	$	3,917,398	$	4,941,912	$	—

(1) Inputs based on quoted prices (unadjusted) in active markets for identical assets or liabilities that we have the ability to access.  Valuation of these items does not entail a significant amount of judgment.

(2) Inputs other than quoted prices included within Level 1 that are observable for the liability, either directly or indirectly.  For unsecured revolving credit facilities and unsecured term loans, fair value is determined utilizing the income valuation approach.  This valuation model takes into account the contract terms of our debt such as the debt maturity and the interest rate on the debt.  The valuation model also takes into account our creditworthiness based on publicly available credit default swap rates.

(3) Inputs that are unobservable.  The Company did not use any Level 3 inputs as of June 30, 2013 and December 31, 2012.

(4) Consists of cash and marketable securities with original maturities of less than 90 days.

(5) Consists of unsecured revolving credit facilities, unsecured senior notes, senior debentures and unsecured term loans.  Does not include our capital lease obligations.

Company's Financial Instruments Recorded at Fair Value on Recurring Basis

The following table presents information about the Company’s financial instruments recorded at fair value on a recurring basis (in thousands):

	Fair Value Measurementsat June 30, 2013 Using								Fair Value Measurementsat December 31, 2012 Using
Description	Total		Level 1(1)		Level 2(2)		Level 3(3)		Total		Level 1(1)		Level 2(2)		Level 3(3)
Assets:
Derivative financial instruments(4)	$	81,561	—		81,561		—		$	96,489	—		96,489		—
Investments(5)	$	6,255	6,255		—		—		$	6,231	6,231		—		—
Total Assets	$	87,816	$	6,255	$	81,561	$	—	$	102,720	$	6,231	$	96,489	$	—
Liabilities:
Derivative financial instruments(6)	$	141,307	—		141,307		—		$	85,119	—		85,119		—
Total Liabilities	$	141,307	$	—	$	141,307	$	—	$	85,119	$	—	$	85,119	$	—

(1) Inputs based on quoted prices (unadjusted) in active markets for identical assets or liabilities that we have the ability to access.  Valuation of these items does not entail a significant amount of judgment.

(2) Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly.  For foreign currency forward contracts, interest rate swaps, cross currency swaps and fuel swaps, fair value is derived using valuation models that utilize the income valuation approach.  These valuation models take into account the contract terms, such as maturity, as well as other inputs, such as foreign exchange rates and curves, fuel types, fuel curves and interest rate yield curves.  For fuel call options, fair value is determined by using the prevailing market price for the instruments consisting of published price quotes for similar assets based on recent transactions in an active market. Fair value for foreign currency collar options is determined by using standard option pricing models with inputs based on the options’ contract terms, such as exercise price and maturity, and readily available public market data, such as foreign exchange curves, foreign exchange volatility levels and discount rates. All derivative instrument fair values take into account the creditworthiness of the counterparty and the Company.

(3) Inputs that are unobservable.  The Company did not use any Level 3 inputs as of June 30, 2013 and December 31, 2012.

(4) Consists of foreign currency forward contracts, foreign currency collar options, interest rate swaps, fuel swaps and purchased fuel call options.  Please refer to the “Fair Value of Derivative Instruments” table for breakdown by instrument type.

(5) Consists of exchange-traded equity securities and mutual funds.

(6) Consists of interest rate swaps, fuel swaps, foreign currency forward contracts, foreign currency collar options and sold fuel call options.  Please refer to the “Fair Value of Derivative Instruments” table for breakdown by instrument type.

Fuel Swap Agreements

	Fuel Swap Agreements
	As ofJune 30,2013	As of December 31, 2012
	(metric tons)
2013	402,000	755,000
2014	768,000	635,000
2015	581,000	363,000
2016	296,000	104,000
2017	74,000	—

	Fuel Swap Agreements
Projected fuel purchases for year:	As ofJune 30,2013		As of December 31, 2012
	(% hedged)
2013	60	%	55	%
2014	55	%	45	%
2015	39	%	25	%
2016	20	%	7	%
2017	5	%	—

Fair Value And Line item Caption of Derivative Instruments

	Fair Value of Derivative Instruments
	Asset Derivatives					Liability Derivatives
	Balance Sheet	As of June 30, 2013		As of December 31, 2012		Balance Sheet	As of June 30, 2013		As of December 31, 2012
	Location	Fair Value		Fair Value		Location	Fair Value		Fair Value
In thousands
Derivatives designated as hedging instruments under ASC 815-20(1)
Interest rate swaps	Other Assets	$	44,639	$	5,099	Other long-term liabilities	$	61,424	$	55,471
Foreign currency forward contracts	Derivative Financial Instruments	—		951		Accrued expenses and other liabilities	3,304		338
Foreign currency forward contracts	Other Assets	8,024		11,564		Other long-term liabilities	4,099		1,000
Foreign currency collar options	Other Assets	—		8,974		Other long-term liabilities	2,273		—
Fuel swaps	Derivative Financial Instruments	14,823		48,624		Accrued expenses and other liabilities	12,144		1,761
Fuel swaps	Other Assets	128		8,585		Other long-term liabilities	36,995		6,369
Total derivatives designated as hedging instruments under 815-20		$	67,614	$	83,797		$	120,239	$	64,939
Derivatives not designated as hedging instruments under ASC 815-20
Foreign currency forward contracts	Derivative Financial Instruments	$	7,559	$	—	Accrued expenses and other liabilities	$	4,611	$	—
Foreign currency forward contracts	Other Assets	2,733		4,440		Other long-term liabilities	12,809		11,475
Fuel swaps	Derivative Financial Instruments	6		—		Accrued expenses and other liabilities	59		475
Fuel call options	Derivative Financial Instruments	3,649		8,252		Accrued expenses and other liabilities	3,589		8,230
Total derivatives not designated as hedging instruments under 815-20		13,947		12,692			21,068		20,180
Total derivatives		$	81,561	$	96,489		$	141,307	$	85,119

(1) Accounting Standard Codification 815-20 “Derivatives and Hedging”.

Carrying Value and Line Item Caption of Non-derivative Instruments designated as hedging instruments

Non-derivative instrument designated as hedging		Carrying Value
instrument under ASC 815-20	Balance Sheet Location	As of June 30, 2013		As of December 31, 2012
In thousands
Foreign currency debt	Current portion of long-term debt	$	522,343	$	17,516
Foreign currency debt	Long-term debt	129,526		617,593
		$	651,869	$	635,109

Effect of Non-derivative Instruments Qualifying and Designated as net investment Hedging Instruments on Consolidated Financial Statements

Non-derivative	Amount of Gain (Loss) Recognized in OCI (Effective Portion)									Location of Gain (Loss) in Income (Ineffective Portion and	Amount of Gain (Loss) Recognized in Income (Ineffective Portion and Amount Excluded from Effectiveness Testing)
instruments under ASC 815-20 Net Investment Hedging Relationships	Quarter Ended June 30, 2013			Quarter Ended June 30, 2012		Six Months Ended June 30, 2013		Six Months Ended June 30, 2012		Amount Excluded from Effectiveness Testing)	Quarter Ended June 30, 2013		Quarter Ended June 30, 2012		Six Months Ended June 30, 2013		Six Months Ended June 30, 2012
In thousands
Foreign Currency Debt	$	(7,978	)	$	35,888	$	4,754	$	15,118	Other income (expense)	$	—	$	—	$	—	$	—
	$	(7,978	)	$	35,888	$	4,754	$	15,118		$	—	$	—	$	—	$	—

Not Designated as Hedging Instrument

Derivative Instruments

Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance

Derivatives Not Designated as Hedging	Location of Gain	Amount of Gain (Loss) Recognized in Income on Derivative
Instruments under ASC 815-20	(Loss) Recognized in Income on Derivative	Quarter Ended June 30, 2013			Quarter Ended June 30, 2012			Six Months Ended June 30, 2013			Six Months Ended June 30, 2012
In thousands
Foreign currency forward contracts	Other income (expense)	$	(18,669	)	$	(3,876	)	$	(27,280	)	$	4,497
Fuel swaps	Other income (expense)	(61		)	(1,763		)	48			(1,763		)
Fuel call options	Other income (expense)	(121		)	(10,152		)	37			(7,470		)
		$	(18,851	)	$	(15,791	)	$	(27,195	)	$	(4,736	)

Fair Value Hedging

Derivative Instruments

Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance

Derivatives and	Location of	Amount of Gain (Loss) Recognized in Income on Derivative										Amount of Gain (Loss) Recognized in Income on Hedged Item
related Hedged Items under ASC 815-20 Fair Value Hedging Relationships	Gain (Loss) Recognized in Income on Derivative and Hedged Item	Quarter Ended June 30, 2013			Quarter Ended June 30, 2012		Six Months Ended June 30, 2013			Six Months Ended June 30, 2012		Quarter Ended June 30, 2013		Quarter Ended June 30, 2012			Six Months Ended June 30, 2013		Six Months Ended June 30, 2012
In thousands
Interest rate swaps	Interest expense, net of interest capitalized	$	2,498		$	4,880	$	3,277		$	9,862	$	9,323	$	7,107		$	18,599	$	14,367
Interest rate swaps	Other income (expense)	(57,675		)	5,959		(59,244		)	1,416		54,761		(5,616		)	56,173		(1,902		)
		$	(55,177	)	$	10,839	$	(55,967	)	$	11,278	$	64,084	$	1,491		$	74,772	$	12,465

Cash flow hedge

Derivative Instruments

Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance

	Amount of Gain (Loss) Recognized in OCI on Derivative (Effective Portion)												Location of Gain (Loss) Reclassified from	Amount of Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion)
Derivatives under ASC 815-20 Cash Flow Hedging Relationships	Quarter Ended June 30, 2013			Quarter Ended June 30, 2012			Six Months Ended June 30, 2013			Six Months Ended June 30, 2012			Accumulated OCI into Income (Effective Portion)	Quarter Ended June 30, 2013			Quarter Ended June 30, 2012			Six Months Ended June 30, 2013			Six Months Ended June 30, 2012
In thousands
Cross currency swaps	$	—		$	—		$	—		$	—		Interest expense, net of interest capitalized	$	(880	)	$	—		$	(1,751	)	$	—
Cross currency swaps	—			(8,783		)	—			(12,370		)	Other income (expense)	—			(9,800		)	—			(12,721		)
Interest rate swaps	80,800			(35,478		)	93,488			(30,924		)	Other income (expense)	—			—			—			—
Foreign currency forward contracts	6,087			(47,758		)	(8,995		)	(30,050		)	Depreciation and amortization expenses	(450		)	(196		)	(899		)	(392		)
Foreign currency forward contracts	—			—			—			—			Other income (expense)	(239		)	(239		)	(477		)	(477		)
Foreign currency forward contracts	—			—			—			—			Interest expense, net of interest capitalized	(5		)	—			(5		)	—
Foreign currency collar options	3,714			(12,564		)	(11,247		)	(12,564		)	Depreciation and amortization expenses	—			—			—			—
Fuel swaps	(65,225		)	(165,746		)	(55,200		)	(4,479		)	Fuel	9,408			28,158			26,236			63,985
	$	25,376		$	(270,329	)	$	18,046		$	(90,387	)		$	7,834		$	17,923		$	23,104		$	50,395

Derivatives under ASC	Location of Gain (Loss) Recognized in Income on Derivative (Ineffective Portion and	Amount of Gain (Loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness testing)
815-20 Cash Flow Hedging Relationships	Amount Excluded from Effectiveness Testing)	Quarter Ended June 30, 2013			Quarter Ended June 30, 2012			Six Months Ended June 30, 2013			Six Months Ended June 30, 2012
In thousands
Cross currency swaps	Other income (expense)	$	—		$	—		$	—		$	—
Cross currency swaps	Other income (expense)	—			(234		)	—			(234		)
Interest rate swaps	Other income (expense)	373			(71		)	427			(70		)
Foreign currency forward contracts	Other income (expense)	(5		)	(16		)	(10		)	(9		)
Foreign currency forward contracts	Other income (expense)	—			—			—			—
Foreign currency forward contracts	Other income (expense)	—			—			—			—
Foreign currency collar options	Other income (expense)	—			—			—			—
Fuel swaps	Other income (expense)	(3,649		)	(4,418		)	(4,369		)	(3,889		)
		$	(3,281	)	$	(4,739	)	$	(3,952	)	$	(4,202	)