Fair Value Measurements

12 Months Ended

Dec. 31, 2012

Fair Value Measurements

Fair Value Measurements

Note 7. Fair Value Measurements

        FASB accounting standards provide a comprehensive framework for measuring fair value and sets forth a definition of fair value and establishes a hierarchy prioritizing the inputs to valuation techniques, giving the highest priority to quoted prices in active markets for identical assets and liabilities and the lowest priority to unobservable value inputs. Levels within the hierarchy are defined as follows:

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  Level 1—Unadjusted quoted prices for identical assets and liabilities in active markets;

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  Level 2—Quoted prices for similar assets and liabilities in active markets (other than those included in Level 1) which are observable for the asset or liability, either directly or indirectly; and

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  Level 3—Valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable.

        The following table sets forth financial assets and liabilities measured at fair value in the consolidated balance sheet and the respective levels to which the fair value measurements are classified within the fair value hierarchy as of December 31 (in thousands):

	Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
2012
Investment in short-term commercial paper	$	31,520	$	—	$	31,520	$	—
Commodity futures—financial assets		4,024		—		4,024		—
Commodity futures—financial liabilities		1,854		—		1,854		—
2011
Investment in short-term commercial paper	$	84,830	$	—	$	84,830	$	—
Commodity futures and options—financial assets		3,159		—		3,159		—
Commodity futures—financial liabilities		4,378		—		4,378		—

        The carrying amounts of financial instruments including cash and equivalents approximate fair value. The fair values of short-term commercial paper and commodity futures contracts are estimated by the use of quoted market prices, estimates obtained from brokers, and other appropriate valuation techniques based on references available. The fair value of long-term debt, including current maturities, as determined by quoted market prices (Level 2), was approximately $2.3 billion and $2.5 billion (with a corresponding carrying amount in the consolidated balance sheet of $2.2 billion and $2.4 billion) at December 31, 2012 and 2011, respectively.

        Certain assets of two small joint ventures were analyzed for impairment in the third quarter of 2012 as discussed in Note 1, resulting in an impairment charge of $8.3 million. The $5.8 million current fair value (and new cost basis) was determined utilizing the market approach (Level 3).