Financial Instruments
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6 Months Ended | |||||||||
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Jun. 30, 2014
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Financial Instruments [Abstract] | ||||||||||
Financial Instruments | Note 8 – 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:
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 our 9.5% senior secured notes based on market quotes, which we determined to be Level 1 inputs, at June 30, 2014 was approximately $319.6 million compared to the carrying amount of $305.7 million. The fair value of our 9.5% senior secured notes based on market quotes, which we determined to be Level 1 inputs, at December 31, 2013 was approximately $306.9 million compared to the carrying amount of $305.2 million. The Company believes the fair value of our variable interest rate Asset Based Loan ("ABL") facility at June 30, 2014 and December 31, 2013 equals the carrying value of $35.0 million and $25.0 million, respectively. As of June 30, 2014 and December 31, 2013 we had no other remaining financial instruments. |