Fair Value Measurements and Derivative Instruments (Tables)

9 Months Ended

Sep. 30, 2013

Not Designated as Hedging Instrument

Sep. 30, 2013

Fair Value Hedging

Sep. 30, 2012

Cash flow hedge

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 Measurements at September 30, 2013 Using								Fair Value Measurements at 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)	$	209,567	209,567		—		—		$	194,855	194,855		—		—

Total Assets	$	209,567	$	209,567	$	—	$	—	$	194,855	$	194,855	$	—	$	—

Liabilities:
Long-term debt (including current portion of long-term debt)(5)	$	8,225,926	3,212,399		5,013,527		—		$	8,859,310	3,917,398		4,941,912		—

Total Liabilities	$	8,225,926	$	3,212,399	$	5,013,527	$	—	$	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 September 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 Measurements At September 30, 2013 Using								Fair Value Measurements at 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)	$	128,484	—		128,484		—		$	96,489	—		96,489		—

Investments(5)	$	5,985	5,985		—		—		$	6,231	6,231		—		—

Total Assets	$	134,469	$	5,985	$	128,484	$	—	$	102,720	$	6,231	$	96,489	$	—

Liabilities:
Derivative financial instruments(6)	$	106,262	—		106,262		—		$	85,119	—		85,119		—

Total Liabilities	$	106,262	$	—	$	106,262	$	—	$	85,119	$	—	$	85,119	$	—

(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 September 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.

Outstanding Fuel Swap Agreements

	Fuel Swap Agreements
	As of September 30, 2013	As of December 31, 2012
	(metric tons)
2013	214,000	755,000
2014	762,000	635,000
2015	590,000	363,000
2016	298,000	104,000
2017	74,000	—

	Fuel Swap Agreements
	As of September 30, 2013		As of December 31, 2012
	(% hedged)
Projected fuel purchases for year:
2013	63	%	55	%
2014	56	%	45	%
2015	40	%	25	%
2016	20	%	7	%
2017	5	%	—

Fair Value And Line item Caption of Derivative Instruments

	Fair Value of Derivative Instruments
	Asset Derivatives					Liability Derivatives
		As of September 30, 2013		As of December 31, 2012			As of September 30, 2013		As of December 31, 2012
	Balance Sheet Location	Fair Value		Fair Value		Balance Sheet Location	Fair Value		Fair Value
In thousands
Derivatives designated as hedging instruments under ASC 815-20(1)

Interest rate swaps	Other assets	$	39,974	$	5,099	Other long-term liabilities	$	60,541	$	55,471
Foreign currency forward contracts	Derivative financial instruments	23,474		951		Accrued expenses and other liabilities	—		338
Foreign currency forward contracts	Other assets	24,494		11,564		Other long-term liabilities	—		1,000
Foreign currency collar options	Other assets	14,529		8,974		Other long-term liabilities	—		—
Fuel swaps	Derivative financial instruments	13,855		48,624		Accrued expenses and other liabilities	4,261		1,761
Fuel swaps	Other assets	1,094		8,585		Other long-term liabilities	23,367		6,369
Total derivatives designated as hedging instruments under 815-20		$	117,420	$	83,797		$	88,169	$	64,939

Derivatives not designated as hedging instruments under ASC 815-20
Foreign currency forward contracts	Derivative financial instruments	$	8,162	$	—	Accrued expenses and other liabilities	$	5,208	$	—
Foreign currency forward contracts	Other assets	98		4,440		Other long-term liabilities	10,242		11,475
Fuel swaps	Derivative financial instruments	138		—		Accrued expenses and other liabilities	—		475
Fuel call options	Derivative financial instruments	2,666		8,252		Accrued expenses and other liabilities	2,643		8,230
Total derivatives not designated as hedging instruments under 815-20		11,064		12,692			18,093		20,180
Total derivatives		$	128,484	$	96,489		$	106,262	$	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 September 30, 2013		As of December 31, 2012
In thousands
Foreign currency debt	Current portion of long-term debt	$	526,123	$	17,516
Foreign currency debt	Long-term debt	134,887		617,593
		$	661,010	$	635,109

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

Non-derivative instruments	Amount of Gain (Loss) Recognized in Other Comprehensive Income (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)
under ASC 815- 20 Net Investment Hedging Relationships	Quarter Ended September 30, 2013			Quarter Ended September 30, 2012			Nine Months Ended September 30, 2013			Nine Months Ended September 30, 2012			Amount Excluded from Effectiveness Testing)	Quarter Ended September 30, 2013		Quarter Ended September 30, 2012		Nine Months Ended September 30, 2013		Nine Months Ended September 30, 2012
In thousands
Foreign Currency Debt	$	(26,347	)	$	(19,915	)	$	(21,593	)	$	(4,797	)	Other income (expense)	$	—	$	—	$	—	$	—
	$	(26,347	)	$	(19,915	)	$	(21,593	)	$	(4,797	)		$	—	$	—	$	—	$	—

Derivative Instruments

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

		Amount of Gain (Loss) Recognized in Income on Derivatives
Derivatives Not Designated as Hedging Instruments under ASC 815-20	Location of Gain (Loss) Recognized in Income on Derivatives	Quarter Ended September 30, 2013			Quarter Ended September 30, 2012			Nine Months Ended September 30, 2013			Nine Months Ended September 30, 2012
In thousands
Foreign currency forward contracts	Other income (expense)	$	16,789		$	4,793		$	(10,491	)	$	9,290
Fuel swaps	Other income (expense)	220			(1,112		)	268			(2,875		)
Fuel call options	Other income (expense)	(38		)	1,799			(1		)	(5,671		)
		$	16,971		$	5,480		$	(10,224	)	$	744

Derivatives and		Amount of Gain (Loss) Recognized in Income on											Amount of Gain (Loss) Recognized in Income on
related Hedged	Location of	Derivative											Hedged Item
Items under ASC 815-20 Fair Value Hedging Relationships	Gain (Loss) Recognized in Income on Derivative and Hedged Item	Quarter Ended September 30, 2013		Quarter Ended September 30, 2012			Nine Months Ended September 30, 2013			Nine Months Ended September 30, 2012			Quarter Ended September 30, 2013			Quarter Ended September 30, 2012		Nine Months Ended September 30, 2013		Nine Months Ended September 30, 2012
In thousands
Interest rate swaps	Interest expense, net of interest capitalized	$	3,022	$	3,054		$	6,299		$	12,916		$	9,503		$	8,634	$	28,102	$	23,001
Interest rate swaps	Other income (expense)	958		(2,300		)	(58,286		)	(884		)	(620		)	2,863		55,553		961
Interest rate swaps	Extinguishment of unsecured senior notes	—		—			—			—			—			9,698		—		9,698
		$	3,980	$	754		$	(51,987	)	$	12,032		$	8,883		$	21,195	$	83,655	$	33,660

	Amount of Gain (Loss) Recognized in Accumulated Other Comprehensive Income on Derivative (Effective Portion)												Location of Gain (Loss) Reclassified from Accumulated Other	Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Income (Effective Portion)
Derivatives under ASC 815- 20 Cash Flow Hedging Relationships	Quarter Ended September 30, 2013			Quarter Ended September 30, 2012			Nine Months Ended September 30, 2013			Nine Months Ended September 30, 2012			Comprehensive Income into Income (Effective Portion)	Quarter Ended September 30, 2013			Quarter Ended September 30, 2012			Nine Months Ended September 30, 2013			Nine Months Ended September 30, 2012
In thousands
Cross currency swaps	$	—		$	13,221		$	—		$	851		Other income (expense)	$	—		$	14,405		$	—		$	2,505
Cross currency swaps	—			—			—			—			Interest expense, net of interest capitalized	(890		)	(498		)	(2,641		)	(1,319		)
Interest rate swaps	(5,816		)	(19,146		)	87,672			(50,070		)	Other income (expense)	—			—			—			—
Foreign currency forward contracts	47,338			19,881			38,343			(10,169		)	Depreciation and amortization expenses	(449		)	(196		)	(1,348		)	(588		)
Foreign currency forward contracts	—			—			—			—			Other income (expense)	19,089			(238		)	18,612			(715		)
Foreign currency forward contracts	—			—			—			—			Interest expense, net of interest capitalized	(217		)	—			(222		)	—
Foreign currency collar options	16,801			4,229			5,554			(8,335		)	Depreciation and amortization expenses	—			—			—			—
Fuel swaps	32,785			100,942			(22,415		)	96,463			Fuel	12,002			24,332			38,238			88,317
	$	91,108		$	119,127		$	109,154		$	28,740			$	29,535		$	37,805		$	52,639		$	88,200

	Location of Gain (Loss) Recognized in Income	Amount of Gain (Loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness testing)
Derivatives under ASC 815-20 Cash Flow Hedging Relationships	on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing)	Quarter Ended September 30, 2013			Quarter Ended September 30, 2012			Nine Months Ended September 30, 2013			Nine Months Ended September 30, 2012
In thousands
Cross currency swaps	Other income (expense)	$	—		$	234		$	—		$	—
Cross currency swaps	Other income (expense)	—			—			—			—
Interest rate swaps	Other income (expense)	(7		)	(277		)	420			(347		)
Foreign currency forward contracts	Other income (expense)	15			(173		)	5			(182		)
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)	(953		)	3,325			(5,322		)	(564		)
		$	(945	)	$	3,109		$	(4,897	)	$	(1,093	)