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Fair Value Measurements (Tables)
12 Months Ended
Dec. 31, 2012
Fair Value Disclosures [Abstract]  
Measurement of assets and liabilities at fair value on a recurring basis
The liabilities measured at fair value on a recurring basis were as follows:
 
Level 1
 
Level 2
 
Level 3
 
Total
As of December 31, 2012:
 
 
 
 
 
 
 
Derivative liability for commodity hedges
$

 
$
2,494

 
$

 
$
2,494

As of December 31, 2011:
 
 
 
 
 
 
 
Derivative liability for commodity hedges
$

 
$
2,331

 
$

 
$
2,331

Derivative liability for conversion feature associated with convertible debt

 

 
26,440

 
26,440

Reconciliation of the change in fair value of Level 3 liabilities
The following reconciliation represents the change in fair value of Level 3 liabilities between January 1, 2012 and December 31, 2012:
 
Derivative liability for
conversion  feature
associated with
convertible debt
Fair value as of January 1
$
26,440

Mark-to-market adjustment on conversion feature
15,597

Reclassification from long-term debt to additional paid-in capital
(42,037
)
Fair value as of December 31
$

Fair Value Assumptions
The main inputs and assumptions into the fair value model for the Convertible Notes at December 31, 2012 were as follows:
Company's stock price at the end of the period
$
14.77

Expected volatility
22.3
%
Credit spreads
8.22
%
Risk-free interest rate
0.36
%