Fair Value Measurement

9 Months Ended

Sep. 30, 2012

Fair Value Disclosures [Abstract]

Fair Value Measurement

Fair Value Measurement

The fair value hierarchy is based on inputs to valuation techniques that are used to measure fair value that are either observable or unobservable. Observable inputs reflect assumptions market participants would use in pricing an asset or liability based on market data obtained from independent sources while unobservable inputs reflect a reporting entity’s pricing based upon their own market assumptions. The fair value hierarchy consists of the following three levels:

• Level I - Quoted prices for identical instruments in active markets.

• Level II - Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations whose inputs are observable or whose significant value drivers are observable.

• Level III - Instruments whose significant value drivers are unobservable.

The following table presents for each of these hierarchy levels, the Company’s financial assets and liabilities that are measured at fair value on a recurring basis:

	Level I		Level II		Level III		Total
At September 30, 2012:
Assets:
Cash equivalents (a)	$	287,100	$	—	$	—	$	287,100
Liabilities:
Interest rate swap contracts	$	—	$	24,429	$	—	$	24,429
At December 31, 2011:
Assets:
Cash equivalents (a)	$	202,276	$	—	$	—	$	202,276
Liabilities:
Interest rate swap contracts	$	—	$	19,091	$	—	$	19,091

(a) Represents the Company’s investment in money market funds.

The Company’s cash equivalents are classified within Level I of the fair value hierarchy because they are valued using quoted market prices.

The Company’s interest rate swap contracts are classified within Level II of the fair value hierarchy and their fair values are determined based on a market approach valuation technique that uses readily observable market parameters and the consideration of counterparty risk.

Credit Facility Debt and Senior Notes

The fair values of each of the Company’s debt instruments are based on quoted market prices for the same or similar issues or on the current rates offered to the Company for instruments of the same remaining maturities.

The carrying values and estimated fair values of the Company’s financial instruments, excluding those that are carried at fair value in the consolidated balance sheets are summarized as follows:

	September 30, 2012
	Carrying Amount		Estimated Fair Value
Debt instruments:
Credit facility debt	$	1,502,479	$	1,495,866
Senior notes	687,169		791,000
	$	2,189,648	$	2,286,866
	December 31, 2011
	Carrying Amount		Estimated Fair Value
Debt instruments:
Credit facility debt	$	1,604,846	$	1,550,960
Senior notes	686,434		761,250
	$	2,291,280	$	2,312,210

Fair value estimates related to the Company’s debt instruments presented above are made at a specific point in time, based on relevant market information and information about the financial instrument. These estimates are subjective in nature and involve uncertainties and matters of significant judgments and therefore cannot be determined with precision. Changes in assumptions could significantly affect the estimates.