Financial Instruments

9 Months Ended

Sep. 30, 2011

Financial Instruments [Abstract]

Financial Instruments

Note 7 – Financial Instruments

We have determined the estimated fair value amounts of financial instruments using available market information and other appropriate valuation methodologies. However, considerable judgment is required in interpreting market data to develop the estimates of fair value.  A fair value hierarchy accounting standard exists for those instruments measured at fair value that distinguishes between assumptions based on market data (observable inputs) and our own assumptions (unobservable inputs).  Determining which category an asset or liability falls within the hierarchy requires significant judgment.  We evaluate our hierarchy disclosures each quarter.

The hierarchy consists of three levels:

Level 1	Quoted market prices in active markets for identical assets or liabilities;
Level 2	Inputs other than Level 1 inputs that are either directly or indirectly observable; and
Level 3	Unobservable inputs developed using estimates and assumptions developed by us, which reflect those that a market participant would use.

The carrying amounts of cash and cash equivalents, trade receivables, and accounts payable approximate fair value because of the relatively short maturity of these instruments.  The fair value of debt at September 30, 2011 and December 31, 2010 was $305.2 million and $335.6 million, respectively.  The carrying amounts and related estimated fair values for our remaining financial instruments as of September 30, 2011 and December 31, 2010 are as follows:

			Fair Value
As of September 30, 2011	Carrying Amount		Level 1		Level 2		Level 3
Liabilities
Common stock warrants	$	221	$	221		-		-

			Fair Value
As of December 31, 2010	Carrying Amount		Level 1		Level 2		Level 3
Liabilities
Common stock warrants	$	3,971	$	3,971		-		-

At September 30, 2011 and December 31, 2010, our warrants were included as a component of other current liabilities and other non current liabilities, respectively.

Fair values relating to derivative financial instruments reflect the estimated amounts that we would receive or pay to terminate the contracts at the reporting date based on quoted market prices of comparable contracts as of the balance sheet date.

The following table summarizes changes in fair value of our Level 3 assets and (liabilities) for the periods January 1, 2010 to February 26, 2010 and February 26, 2010 to September 30, 2010.  There were no Level 3 assets or liabilities for the nine month period ending September 30, 2011:

	Prepetition Common Stock Warrants			Postpetition Common Stock Warrants			Conversion Option within our Convertible Notes
Balance at January 1, 2010	$	(76	)	$	-		$	-
Net settlements		76			-			-
Issuance of securities		-			6,618			170,989
Balance at February 26, 2010	$	-		$	6,618		$	170,989
Unrealized gain		-			(4,633	)		(5,623	)
Balance at September 30, 2010	$	-		$	1,985		$	165,366