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Fair Value Of Financial Instruments
 12 Months Ended
Dec. 31, 2013
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 three input levels in the hierarchy of fair value measurements are defined by the FASB generally as follows:

Input Level              Description of Input

Level 1                    Observable inputs such as quoted prices in active markets for identical assets.

Level 2                    Inputs other than quoted prices in active markets that are either directly or indirectly observable.

Level 3                    Unobservable inputs in which little or no market data exists.

 

 

The following tables represent the Company’s pension plan assets measured at fair value on a recurring basis as of December 31, 2013 and 2012:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

($ in thousands)

 

Fair Value Measurements at December 31, 2013

 

 

Total

 

Level 1

 

Level 2

 

Level 3

Cash and Cash Equivalents

 

$
8,503 

 

$
8,503 

 

$

 -

 

$

 -

U.S. Government Obligations

 

 
26,070 

 

 

 -

 

 
26,070 

 

 

 -

Corporate and Other Obligations

 

 
235,723 

 

 

 -

 

 
235,723 

 

 

 -

Common Stock

 

 
120,801 

 

 
120,801 

 

 

 -

 

 

 -

Commingled Funds

 

 
604,975 

 

 

 -

 

 
571,531 

 

 
33,444 

Interest in Registered Investment Companies

 

 
80,221 

 

 
80,221 

 

 

 -

 

 

 -

Interest in Limited Partnerships and

 

 

 

 

 

 

 

 

 

 

 

 

Limited Liability Corporations

 

 
129,276 

 

 

 -

 

 

 -

 

 
129,276 

Insurance Contracts

 

 
629 

 

 

 -

 

 
629 

 

 

 -

Other

 

 
1,660 

 

 

 -

 

 
1,660 

 

 

 -

Total investments at fair value

 

$
1,207,858 

 

$
209,525 

 

$
835,613 

 

$
162,720 

Interest and Dividend Receivable

 

 
2,832 

 

 

 

 

 

 

 

 

 

Due from Broker for Securities Sold

 

 
8,916 

 

 

 

 

 

 

 

 

 

Receivable Associated with Insurance Contract

 

 
7,044 

 

 

 

 

 

 

 

 

 

Due to Broker for Securities Purchased

 

 
(10,125)

 

 

 

 

 

 

 

 

 

Total Plan Assets, at Fair Value

 

$
1,216,525 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

($ in thousands)

 

Fair Value Measurements at December 31, 2012

 

 

Total

 

Level 1

 

Level 2

 

Level 3

Cash and Cash Equivalents

 

$
42,391 

 

$

 -

 

$
42,391 

 

$

 -

U.S. Government Obligations

 

 
14,166 

 

 

 -

 

 
14,166 

 

 

 -

Corporate and Other Obligations

 

 
246,024 

 

 

 -

 

 
246,024 

 

 

 -

Common Stock

 

 
133,631 

 

 
133,631 

 

 

 -

 

 

 -

Commingled Funds

 

 
612,707 

 

 

 -

 

 
572,893 

 

 
39,814 

Interest in Registered Investment Companies

 

 
99,161 

 

 
99,161 

 

 

 -

 

 

 -

Interest in Limited Partnerships and

 

 

 

 

 

 

 

 

 

 

 

 

Limited Liability Corporations

 

 
101,678 

 

 

 -

 

 

 -

 

 
101,678 

Insurance Contracts

 

 
799 

 

 

 -

 

 
799 

 

 

 -

Other

 

 
96 

 

 

 -

 

 
96 

 

 

 -

Total investments at fair value

 

$
1,250,653 

 

$
232,792 

 

$
876,369 

 

$
141,492 

Interest and Dividend Receivable

 

 
3,252 

 

 

 

 

 

 

 

 

 

Due from Broker for Securities Sold

 

 
3,788 

 

 

 

 

 

 

 

 

 

Receivable Associated with Insurance Contract

 

 
7,610 

 

 

 

 

 

 

 

 

 

Due to Broker for Securities Purchased

 

 
(11,637)

 

 

 

 

 

 

 

 

 

Total Plan Assets, at Fair Value

 

$
1,253,666 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The Company classified $8.5 million of cash equivalents as Level 1 assets at December 31, 2013 as these investments were held in cash accounts in 2013.  There have been no reclassifications of investments between Levels 1, 2 or 3 assets during the years ended December 31, 2013 or 2012.

 

 

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, 2013 and 2012:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

($ in thousands)

 

2013

 

 

Interest in Limited Partnerships and Limited Liability Corporations

 

Commingled Funds

Balance, beginning of year

 

$
101,678 

 

$
39,814 

Realized gains

 

 
10,835 

 

 
975 

Unrealized gains

 

 
18,033 

 

 
2,656 

Contributed assets

 

 
23,422 

 

 

 -

Sales

 

 
(24,692)

 

 
(10,001)

Balance, end of year

 

$
129,276 

 

$
33,444 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

($ in thousands)

 

2012

 

 

Interest in Limited Partnerships and Limited Liability Corporations

 

Commingled Funds

Balance, beginning of year

 

$
104,033 

 

$
37,194 

Realized gains

 

 
5,587 

 

 

 -

Unrealized gains

 

 
454 

 

 
2,620 

Sales

 

 
(8,396)

 

 

 -

Balance, end of year

 

$
101,678 

 

$
39,814 

 

 

 

 

 

 

 

 

 

The following table provides further information regarding the redemption of the Plan’s Level 3 investments as of December 31, 2013:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

($ in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fair Value

 

Redemption Frequency

 

Redemption Notice Period

 

Liquidation Period

Commingled Funds

 

 

 

 

 

 

 

 

 

 

 

 

JPM Multi-Strat II C-A Ser 11-07 (a)

 

$
33,444 

 

 

Quarterly

 

 

65 days

 

 

NA

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest in Limited Partnerships and Limited

 

 

 

 

 

 

 

 

 

 

 

 

Liability Corporations

 

 

 

 

 

 

 

 

 

 

 

 

Morgan Stanley Institutional Cayman Fund LP (b)

 

$
26,188 

 

 

Quarterly

 

 

60 days

 

 

NA

MS IFHF SVP LP Cayman (b)

 

 
2,772 

 

 

Through liquidation of
underlying investments

 

 

None

 

 

2 years

MS IFHF SVP LP Alpha (b)

 

 
1,504 

 

 

Through liquidation of
underlying investments

 

 

None

 

 

2 years

RII World Timberfund, LLC (c)

 

 
5,761 

 

 

Through liquidation of
underlying investments

 

 

None

 

 

10 years

100 Comm Drive, LLC (d)

 

 
8,557 

 

 

Through liquidation of
underlying investments

 

 

None

 

 

NA

100 CTE Drive, LLC (d)

 

 
6,922 

 

 

Through liquidation of
underlying investments

 

 

None

 

 

NA

6430 Oakbrook Parkway, LLC (d)

 

 
24,955 

 

 

Through liquidation of
underlying investments

 

 

None

 

 

NA

8001 West Jefferson, LLC (d)

 

 
29,318 

 

 

Through liquidation of
underlying investments

 

 

None

 

 

NA

1500 MacCorkle Ave SE, LLC (d)

 

 
15,987 

 

 

Through liquidation of
underlying investments

 

 

None

 

 

NA

400 S. Pike Road West, LLC (d)

 

 
1,079 

 

 

Through liquidation of
underlying investments

 

 

None

 

 

NA

601 N US 131, LLC (d)

 

 
1,063 

 

 

Through liquidation of
underlying investments

 

 

None

 

 

NA

9260 E. Stockton Blvd., LLC (d)

 

 
5,170 

 

 

Through liquidation of
underlying investments

 

 

None

 

 

NA

Total Interest in Limited Partnerships and Limited

 

 

 

 

 

 

 

 

 

 

 

 

Liability Corporations

 

$
129,276 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(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 partnerships’ 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 fund’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 entity 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.

 

The following table represents the Plan’s Level 3 financial instruments for its interest in certain limited partnerships and limited liability corporations, the valuation techniques used to measure the fair value of those financial instruments as of December 31, 2013, and the significant unobservable inputs and ranges of values for those inputs:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Instrument

Property

 

Fair Value

Principal Valuation Technique

Significant Unobservable Inputs

Significant Input Values

 

 

 

 

Direct Capitalization

Capitalization Rate

8.50%

 

100 Comm Drive, LLC

$
8,557 

Discounted

Discount Rate

9.50%

 

 

 

 

Cash Flow

Duration (years)

10

 

 

 

 

Direct Capitalization

Capitalization Rate

8.50%

 

100 CTE Drive, LLC

$
6,922 

Discounted

Discount Rate

10.00%

 

 

 

 

Cash Flow

Duration (years)

15

Interest in

 

 

 

Direct Capitalization

Capitalization Rate

8.50%

Limited Partnerships

6430 Oakbrook Parkway, LLC

$
24,955 

Discounted

Discount Rate

10.50%

and Limited

 

 

 

Cash Flow

Duration (years)

10

Liability Corporations

 

 

 

Direct Capitalization

Capitalization Rate

8.50%

 

8001 West Jefferson, LLC

$
29,318 

Discounted

Discount Rate

10.50%

 

 

 

 

Cash Flow

Duration (years)

10

 

1500 MacCorkle Ave SE, LLC

$
15,987 

Direct Capitalization

Capitalization Rate

8.85%

 

400 S. Pike Road West, LLC

$
1,079 

Direct Capitalization

Capitalization Rate

10.50%

 

601 N US 131, LLC

$
1,063 

Direct Capitalization

Capitalization Rate

10.00%

 

9260 E. Stockton Blvd., LLC

$
5,170 

Direct Capitalization

Capitalization Rate

9.00%

 

 

 

 

 

 

 

 

The fair value of our OPEB plan assets, which are all measured using Level 1 inputs, was $2.3 million and $5.1 million as of December 31, 2013 and 2012, respectively.

 

The following table summarizes the carrying amounts and estimated fair values for long-term debt at December 31, 2013 and 2012.  For the other financial instruments including cash, accounts receivable, long-term debt due within one year, accounts payable and other current 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)

 

2013

 

2012

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Carrying

 

 

 

 

 

Carrying

 

 

 

 

 

 

Amount

 

 

Fair Value

 

 

Amount

 

 

Fair Value

 

 

 

 

 

 

 

 

 

 

 

 

 

Long-term debt

 

$
7,873,667 

 

$
8,191,744 

 

$
8,381,947 

 

$
9,091,416 

 

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