Financial instruments

12 Months Ended

Dec. 31, 2012

Financial instruments

Note 9 – Financial instruments:

The following table presents the carrying value and estimated fair value of our financial instruments:

	December 31, 2011				December 31, 2012
	Carrying amount		Fair value		Carrying amount		Fair value
	(In thousands)
Accounts receivable, net	$	58,976	$	58,976	$	46,852	$	46,852
Accounts payable		14,334		14,334		8,424		8,424
Long-term debt:
Variable-rate debt		33,630		33,630		34,403		34,403
Fixed-rate debt		984		1,029		1,031		1,058

Due to their near-term maturities, the carrying amounts of accounts receivable and accounts payable are considered equivalent to fair value. The fair value of our variable rate indebtedness is deemed to approximate book value and is a Level 2 input as defined by ASC Topic 820-10-35. The fair value of our fixed-rate indebtedness was based on the net present value of our remaining debt payments at an interest rate commensurate with our variable-rate debt which represents Level 3 inputs as defined in ASC Topic 820-10-35. Note that substantially all of the carrying value of our fixed-rate debt at December 31, 2011 and 2012 relates to a $1.1 million non-interest bearing note. Because it is non-interest bearing, we have calculated an imputed interest rate on the note and carry the note at a value discounted for such interest.