Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2012

Assets and liabilities measured at fair value on a recurring basis

The following table presents the Company's assets and liabilities that are measured at fair value on a recurring basis at December 31, 2012 and 2011:



(in thousands)	December 31, 2012
Assets (liabilities)	Level 1		Level 2			Level 3		Total
Cash equivalents	$	78,674	$	—		$	—	$	78,674
Restricted cash	398		—			—		398
Commodity derivatives, net	46,966		23,634			—		70,600
Convertible preferred securities (b)	—		—			17,200		17,200
Other assets and liabilities (a)	7,813		(2,109		)	—		5,704
Total	$	133,851	$	21,525		$	17,200	$	172,576



(in thousands)	December 31, 2011
Assets (liabilities)	Level 1		Level 2		Level 3			Total
Cash equivalents	$	183	$	—	$	—		$	183
Restricted cash	18,651		—		—			18,651
Commodity derivatives, net	43,503		22,876		2,467			68,846
Convertible preferred securities (b)	—		—		20,360			20,360
Other assets and liabilities (a)	6,224		—		(2,178		)	4,046
Total	$	68,561	$	22,876	$	20,649		$	112,086


(a)	Included in other assets and liabilities is interest rate and foreign currency derivatives, swaptions and deferred compensation assets.


(b)	Recorded in “Other noncurrent assets” on the Company’s Consolidated Balance Sheets

Beginning and ending balances for the Company's fair value measurements using Level 3 inputs

A reconciliation of beginning and ending balances for the Company’s fair value measurements using Level 3 inputs is as follows:



	2012									2011
(in thousands)	Interest rate derivatives and swaptions			Convertible preferred securities			Commodity derivatives, net			Interest rate derivatives and swaptions			Convertible preferred securities		Commodity derivatives, net
Asset (liability) at December 31,	$	(2,178	)	$	20,360		$	2,467		$	(2,156	)	$	15,790	$	12,406
Gains (losses) included in earnings:
New contracts	—			—			—			—			—		(48		)
Change in market prices	—			—			—			(560		)	—		(5,886		)
Settled contracts	—			—			—			—			—		(3,175		)
Unrealized gains (losses) included in other comprehensive income	—			(3,140		)	—			(62		)	4,570		—
New contracts entered into	—			—			—			600			—		—
Transfers to level 2	2,178			—			(2,467		)	—			—		(1,234		)
Transfers from level 2	—			—			—			—			—		404
Asset (liability) at December 31,	$	—		$	17,220		$	—		$	(2,178	)	$	20,360	$	2,467

Fair Value Inputs, Assets, Quantitative Information

In accordance with ASU 2011-04, the following table summarizes information about the Company's Level 3 fair value measurements as of December 31, 2012:

Quantitative Information about Level 3 Fair Value Measurements

Range

(in thousands)

Fair Value as of 12/31/12

Valuation Method

Unobservable Input

Low

High

Weighted Average

Convertible Preferred Securities

16,720

Market Approach

EBITDA Multiples

5.50x

7.00x

6.60x

Income Approach

Discount Rate

17.5

Fair value of long-term debt estimated using quoted market prices or discounted future cash flows

Based upon the Company’s credit standing and current interest rates offered by the Company on similar bonds and rates currently available to the Company for long-term borrowings with similar terms and remaining maturities, the Company estimates the fair values of its long-term debt instruments outstanding at December 31, 2012 and 2011, as follows:



(in thousands)	Carrying Amount		Fair Value		Fair Value Hierarchy Level
2012:
Fixed rate long-term notes payable	$	263,745	$	279,505	Level 2
Long-term notes payable, non-recourse	785		800		Level 2
Debenture bonds	35,411		37,135		Level 1
	$	299,941	$	317,440

2011:
Fixed rate long-term notes payable	$	179,160	$	186,918	Level 2
Long-term notes payable, non-recourse	954		966		Level 2
Debenture bonds	29,483		30,666		Level 1
	$	209,597	$	218,550