Fair Value of Financial Instruments

12 Months Ended

Dec. 31, 2011

Fair Value of Financial Instruments [Abstract]

Fair Value of Financial Instruments

(18) Fair Value of Financial Instruments:

Fair value is defined under U.S. GAAP as the exit price associated with the sale of an asset or transfer of a liability in an orderly transaction between market participants at the measurement date. Valuation techniques used to measure fair value under U.S. GAAP must maximize the use of observable inputs and minimize the use of unobservable inputs. In addition, U.S. GAAP establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value.

The following tables represent the Company's pension plan assets measured at fair value on a recurring basis as of December 31, 2011 and 2010:

	Fair Value Measurements at December 31, 2011
				Quoted		Significant
				Prices in Active		Other		Significant
				Markets for		Observable		Unobservable
				Identical Assets		Inputs		Inputs
($ in thousands)		Total		(Level 1)		(Level 2)		(Level 3)
Cash and Cash Equivalents	$	34,087	$	-	$	34,087	$	-
U.S. Government Obligations		120,802		-		120,802		-
Corporate and Other Obligations		323,075		-		323,075		-
Common Stock		251,776		251,776		-		-
Commingled Funds		99,063		-		61,869		37,194
Common/Collective Trust Funds		8,606		-		8,606		-
Interest in Registered Investment Companies		253,752		83,667		170,085		-
Interest in Limited Partnerships		104,033		-		-		104,033
Insurance Contracts		805		-		805		-
Other		141		-		141		-
Total investments, at fair value	$	1,196,140	$	335,443	$	719,470	$	141,227
Receivable for Plan Assets of Acquired Business		51,634
Receivable for Earnings on Plan Assets of Acquired Business		8,869
Interest and Dividends Receivable		2,835
Due from Broker for Securities Sold		30,085
Receivable Associated with Insurance Contract		7,727
Due to Broker for Securities Purchased		(39,300)
Total Plan Assets, at Fair Value	$	1,257,990

	Fair Value Measurements at December 31, 2010
				Quoted		Significant
				Prices in Active		Other		Significant
				Markets for		Observable		Unobservable
				Identical Assets		Inputs		Inputs
($ in thousands)		Total		(Level 1)		(Level 2)		(Level 3)
Cash and Cash Equivalents	$	46,637	$	-	$	46,637	$	-
U.S. Government Obligations		144,390		-		144,390		-
Corporate and Other Obligations		262,390		-		262,390		-
Common Stock		226,369		226,369		-		-
Commingled Funds		107,200		-		69,822		37,378
Common/Collective Trust Funds		38,092		-		38,092		-
Interest in Registered Investment Companies		268,694		103,472		165,222		-
Interest in Limited Partnerships		42,635		-		-		42,635
Insurance Contracts		900		-		900		-
Other		(494)		-		(494)		-
Total investments, at fair value	$	1,136,813	$	329,841	$	726,959	$	80,013
Receivable for Plan Assets of Acquired Business		142,472
Receivable for Earnings on Plan Assets of Acquired Business		24,453
Interest and Dividends Receivable		2,669
Due from Broker for Securities Sold		16,780
Receivable Associated with Insurance Contract		7,400
Due to Broker for Securities Purchased		(40,313)
Total Plan Assets, at Fair Value	$	1,290,274

The table below sets forth a summary of changes in the fair value of the Plan's Level 3 assets for the years ended December 31, 2011 and 2010:

	For  the year ended December 31, 2011
		Interest in
		Limited		Commingled
($ in thousands)		Partnerships		Funds
Balance, beginning of year	$	42,635	$	37,378
Realized gains/(losses)		1,598		12
Unrealized gains/(losses)		305		(196)
Purchases and (sales), net		59,495		-
Balance, end of year	$	104,033	$	37,194

	For  the year ended December 31, 2010
		Interest in
		Limited	Commingled
($ in thousands)		Partnerships	Funds
Balance, beginning of year		$         29,727	$             13,922
Realized gains/(losses)		(246)	-
Unrealized gains		1,531	2,456
Purchases and (sales), net		11,623	21,000
Balance, end of year		$         42,635	$             37,378

The following table provides further information regarding the redemption of the Plan's Level 3 investments as of December 31, 2011:

		Fair Value		Redemption	Redemption	Liquidation
	($ in thousands)			Frequency	Notice Period	Period
Commingled Funds
	JPM Multi-Strat II C-A Ser 11-07 (a)	$	37,194	Quarterly	65 Days	NA
Interest in Limited Partnerships
	Morgan Stanley Institutional Cayman Fund LP  (b)		30,954	Quarterly	60 Days	NA
	MS IFHF SVP LP Cayman (b)		5,904	Through liquidation of underlying investments	None	2 years
	MS IFHF SVP LP Alpha (b)		3,204	Through liquidation of underlying investments	None	2 years
	RII World Timberfund, LLC (c)		5,851	Through liquidation of underlying investments	None	10 years
	100 Comm Drive, LLC (d)		6,505	Through liquidation of underlying investments	None	NA
	100 CTE Drive, LLC (d)		4,805	Through liquidation of underlying investments	None	NA
	6430 Oakbrook Parkway LLC (d)		21,005	Through liquidation of underlying investments	None	NA
	8001 West Jefferson, LLC (d)		25,805	Through liquidation of underlying investments	None	NA
Total Interest in Limited Partnerships		$	104,033

(a)  The fund's investment objective is to generate long-term capital appreciation with relatively low volatility and a low correlation with traditional equity and fixed-income markets.  The fund seeks to accomplish this objective by allocating its assets primarily among a select group of experienced portfolio managers that invest in a variety of markets, either through the medium of investment funds or through discretionary managed accounts.

(b) The partnership investment objective is to seek capital appreciation principally through investing in investment funds managed by third party investment managers who employ a variety of alternative investment strategies.

(c)  The partnership's objective is to realize substantial long-term capital appreciation by investing in timberland properties primarily in South America, New Zealand and Australia.

(d)  The partnership invests in commercial real estate properties that are leased to the Company.  The leases are triple net, whereby the Company is responsible for all expenses, including but not limited to, insurance, repairs and maintenance and payment of property taxes.

In January 2010, the FASB issued Accounting Standards Update (“ASU”) No. 2010-06, “Improving Disclosures about Fair Value Measurements.”  ASU No. 2010-06 requires entities to prepare new disclosures surrounding amounts and reasons for significant transfers in and out of Level 1 and Level 2 fair value measurements, as well as inputs and valuation techniques used to measure fair value for both recurring and nonrecurring fair value measurements that fall in either Level 2 or Level 3, and information on purchases, sales, issuances and settlements on a gross basis in the reconciliation of activity in Level 3 fair value measurements.  These new and revised disclosures are required to be implemented for fiscal years beginning after December 15, 2010.  The adoption of the disclosure requirements of ASU No. 2010-06 did not have a material impact on our financial position, results of operations or cash flows.

There have been no reclassifications of investments between Level 1, 2 or 3 assets during the years ended December 31, 2011 or 2010.

The fair value of our OPEB plan assets, which are all measured using Level 1 inputs, was $5.1 million and $6.2 million as of December 31, 2011 and 2010, respectively.

The following table summarizes the carrying amounts and estimated fair values for certain of our financial instruments at December 31, 2011 and 2010. For the other financial instruments, representing cash, accounts receivables, long-term debt due within one year, accounts payable and other accrued liabilities, the carrying amounts approximate fair value due to the relatively short maturities of those instruments. Other equity method investments, for which market values are not readily available, are carried at cost, which approximates fair value.

($ in thousands)	2011		2010
	Carrying		Carrying
	Amount	Fair Value	Amount	Fair Value
Long-term debt	$     8,205,841	$        7,958,873	$     7,983,614	$     8,376,515

The fair value of our long-term debt is estimated based upon quoted market prices at the reporting date for those financial instruments.