FAIR VALUE OF FINANCIAL INSTRUMENTS

3 Months Ended

Mar. 31, 2013

FAIR VALUE OF FINANCIAL INSTRUMENTS

FAIR VALUE OF FINANCIAL INSTRUMENTS

9. FAIR VALUE OF FINANCIAL INSTRUMENTS

Financial instruments consist primarily of cash and cash equivalents, accounts receivable, accounts payable, accrued expenses and long-term debt. The carrying amount of cash and cash equivalents, accounts receivable, accounts payable and accrued expenses approximate their fair value because of the nature of such instruments. The fair values of our outstanding notes, as shown in the table below, are based on quoted market values. Our ABL Revolver is fair valued using comparable recent third party transactions.

The FASB ASC 820-10 establishes a fair value hierarchy that prioritizes observable and unobservable inputs to valuation techniques used to measure fair value. These levels, in order of highest to lowest priority are described below:

• Level 1 — Quoted prices (unadjusted) in active markets for identical assets or liabilities at the measurement date.

  Level 2 — Observable prices that are based on inputs not quoted on active markets, but corroborated by market data.

  Level 3 — Prices that are unobservable for the asset or liability and are developed based on the best information available under the circumstances, which might include the Company's own data.

The following is a summary of the carrying amounts and estimated fair values of our fixed-rate long-term debt and our ABL Revolver as of March 31, 2013 and December 31, 2012:

	March 31, 2013				December 31, 2012
(In millions)	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Level 1
Long-term debt:
4.625 Notes	$	688.0	$	701.3	$	-	$	-
4.875 Notes		450.0		458.7		-		-
Term Loan		196.3		202.3		-		-
9.0 percent Notes		-		-		448.1		501.8
Level 2
Long term debt:
ABL Revolver		139.0		139.0		-		-