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FAIR VALUE OF FINANCIAL INSTRUMENTS (Block)
3 Months Ended
Mar. 31, 2012
Fair Value Disclosures Abstract  
Fair Value Disclosures Text Block

10.       FAIR VALUE OF FINANCIAL INSTRUMENTS

 

Fair Value Of Financial Instruments Subject To Fair Value Measurements

 

Recurring Fair Value Measurements

 

The following tables set forth, by level within the fair value hierarchy, the Company's financial assets and liabilities that were accounted for at fair value on a recurring basis as of the periods indicated. The financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. The Company's assessment of the significance of a particular input to the fair value measurement requires judgment and may affect the valuation of fair value assets and liabilities and their placement within the fair value hierarchy levels.

 

  March 31, 2012
  Value Measurements At Reporting Date Using
     Quoted Prices      
     In Active      
     Markets For Significant   
    Identical Other Significant
    Assets Or Observable Unobservable
    Liabilities Inputs Inputs
Description  Total (Level 1) (Level 2) (Level 3)
  Assets (Liabilities)
  (amounts in thousands)
Assets            
Cash equivalents (1) $ 10,483 $ 10,483 $ - $ -
             
Liabilities            
Deferred Compensation (2) $ (7,685) $ (7,685) $ - $ -
Interest Rate Cash Flow Hedges Designated            
As Qualifying Instruments (3):             
Short-term $ (558) $ - $ (558) $ -
Lease abandonment liability (4):            
Short-term $ (58) $ - $ (58) $ -
Long-term $ (664) $ - $ (664) $ -

  December 31, 2011
  Value Measurements At Reporting Date Using
     Quoted Prices      
     In Active      
     Markets For Significant   
    Identical Other Significant
    Assets Or Observable Unobservable
    Liabilities Inputs Inputs
Description  Total (Level 1) (Level 2) (Level 3)
  Assets (Liabilities)
  (amounts in thousands)
Assets            
Cash equivalents (1) $ 3,625 $ 3,625 $ - $ -
             
Liabilities            
Deferred Compensation (2) $ (6,824) $ (6,824) $ - $ -
Interest Rate Cash Flow Hedges Designated            
As Qualifying Instruments (3):             
Short-term $ (1,346) $ - $ (1,346) $ -
Lease abandonment liability (4):            
Short-term $ (54) $ - $ (54) $ -
Long-term $ (681) $ - $ (681) $ -

 

 

(1)       Cash equivalents, which are included under current assets as cash and cash equivalents, are invested in institutional money market funds. This investment is considered a Level 1 measurement, using quoted prices in active markets for identical investments.

 

(2)       The Company's deferred compensation liability, which is included in other long-term liabilities, is recorded at fair value on a recurring basis. The unfunded plan allows participants to hypothetically invest in various specified investment options such as equity funds, stock funds, capital appreciation funds, money market funds, bond funds, mid-cap value funds and growth funds. The non-qualified deferred compensation plan liability is valued based on quoted market prices of the underlying investments. The Company classifies its non-qualified deferred compensation plan liability as Level 1.

 

(3)        For the Company's interest rate hedges, the Company pays a fixed rate and receives a variable interest rate that is observable based upon a forward LIBOR interest rate curve and is therefore considered a Level 2 measurement. The Company factors into the fair value of its interest rate hedges an adjustment for a non-performance risk by either the Company and/or by the Company's counterparty. The Company reflects the short-term derivative liability under current liabilities and long-term derivative liability under other long-term liabilities.

 

(4)        The Company's lease abandonment liability is recorded at fair value on a recurring basis. The Company uses Level 2 inputs for its valuation methodology as the fair value of the underlying lease is based on expected future cash flows which are adjusted for a nonperformance risk by the Company. The Company reflects the short-term lease abandonment liability under current liabilities and long-term lease abandonment liability under other long-term liabilities.       

 

Non-Recurring Fair Value Measurements

 

The Company has certain assets that are measured at fair value on a non-recurring basis and are adjusted to fair value only when the carrying values are more than the fair values. The categorization of the framework used to price the assets is considered Level 3, due to the subjective nature of the unobservable inputs used to determine the fair value.

       During the three months ended March 31, 2012 and 2011, there were no non-recurring fair value measurements.

Fair Value Of Financial Instruments Subject To Disclosures

 

       The estimated fair value of financial instruments is determined using the best available market information and appropriate valuation methodologies. Considerable judgment is necessary, however, in interpreting market data to develop the estimates of fair value. Accordingly, the estimates presented are not necessarily indicative of the amounts that the Company could realize in a current market exchange, or the value that ultimately will be realized upon maturity or disposition. The use of different market assumptions may have a material effect on the estimated fair value amounts.

 

       Cash and cash equivalents (other than the cash equivalents separately identified under this Note as a Level 1 measurement), accounts receivable and accounts payable, including accrued liabilities: The carrying amount of these assets and liabilities approximates fair value because of the short maturity of these instruments.

 

       The following table presents the carrying value of financial instruments and, where practicable, the fair value as of the periods indicated:

 

  March 31, December 31,
  2012 2011
  Carrying Fair Carrying Fair
  Value Value Value Value
  (amounts in thousands)
             
Credit Facility (1) $ 375,000 $ 379,557 $ 385,000 $ 385,000
Senior Notes (2) $ 217,162 $ 233,992 $ 217,103 $ 216,696
Finance method lease obligations (3) $ 12,610    $ 12,610   
Letter of credit (4) $ 570   $ 570   

       The following methods and assumptions were used to estimate the fair value of financial instruments:

 

       (1) Senior debt: The Company's determination of the fair value was based on a risk adjusted rate and is considered a Level 3 measurement.

 

       (2) The Senior Notes: We utilize a Level 2 valuation input based upon the market trading prices of the Senior Notes to compute the fair value as these Senior Notes are traded in the debt securities market.

       

       (3) Finance method lease obligations: The Company does not believe it is practicable to estimate the fair value of this obligation as it is unlikely that the Company will be required to repay the amount outstanding.

 

       (4) Outstanding standby letter of credit: The Company does not believe it is practicable to estimate the fair value of this financial instrument and does not expect any material loss since the performance of the letter of credit is not likely to be required.