FAIR VALUE MEASUREMENTS

The following tables present our assets and liabilities that are measured at fair value on a recurring basis and the levels of inputs used to measure fair value:



		Fair Value Measurements At December 31, 2014 Using
	Balance Sheet Location	Level 1		Level 2	Level 3	Total
		(In thousands)
Assets:
Interest rate swaps	Prepaid expenses and other current assets	$	—	477	—	477
Interest rate swaps	DFL and other assets	—		4,565	—	4,565
Investments held in Rabbi Trusts:
Cash and cash equivalents		4,418		—	—	4,418
U.S. equity mutual funds		23,589		—	—	23,589
Foreign equity mutual funds		4,724		—	—	4,724
Fixed income mutual funds		5,950		—	—	5,950
Investments held in Rabbi Trusts	DFL and other assets	38,681		—	—	38,681
Total assets at fair value		$	38,681	5,042	—	43,723
Liabilities:
Interest rate swaps	Other non-current liabilities	—		212	—	212
Total liabilities at fair value		$	—	212	—	212

		Fair Value Measurements At December 31, 2013 Using
	Balance Sheet Location	Level 1		Level 2	Level 3	Total
		(In thousands)
Assets:
Interest rate swaps	DFL and other assets	$	—	9,333	—	9,333
Investments held in Rabbi Trusts:
Cash and cash equivalents		7,101		—	—	7,101
U.S. equity mutual funds		16,479		—	—	16,479
Foreign equity mutual funds		4,323		—	—	4,323
Fixed income mutual funds		4,616		—	—	4,616
Investments held in Rabbi Trusts	DFL and other assets	32,519		—	—	32,519
Total assets at fair value		$	32,519	9,333	—	41,852
Liabilities:
Interest rate swaps	Other non-current liabilities	—		1,162	—	1,162
Total liabilities at fair value		$	—	1,162	—	1,162

The following table presents our assets that are measured at fair value on a nonrecurring basis and considered a Level 3 fair value measurement:



				Total Losses ⁽²⁾
	December 31,			Year ended December 31,
	2014		2013	2014		2013
Assets held for sale:
Revenue earning equipment: ⁽¹⁾
Trucks	$	6,135	13,326	$	6,274	9,926
Tractors	4,054		10,339	3,450		4,824
Trailers	789		723	1,040		1,678
Total assets at fair value	$	10,978	24,388	$	10,764	16,428

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(1)	Represents the portion of all revenue earning equipment held for sale that is recorded at fair value, less costs to sell.


(2)	Total losses represent fair value adjustments for all vehicles held for sale throughout the period for which fair value less costs to sell was less than carrying value.

Revenue earning equipment held for sale is stated at the lower of carrying amount or fair value less costs to sell. Only certain vehicles held for sale have carrying amounts greater than the fair value and losses are recorded at the time they arrive at our used truck centers. We typically record gains on the remaining vehicles with carrying amounts greater than fair value at the time they are sold. Losses to reflect changes in fair value are presented within "Other operating expenses" in the Consolidated Statements of Earnings. For revenue earning equipment held for sale, we stratify our fleet by vehicle type (trucks, tractors and trailers), weight class, age and other relevant characteristics and create classes of similar assets for analysis purposes. Fair value was determined based upon recent market prices obtained from our own sales experience for sales of each class of similar assets and vehicle condition. Therefore, our revenue earning equipment held for sale was classified within Level 3 of the fair value hierarchy. During the years ended December 31, 2014, 2013, and 2012, we recorded losses to reflect changes in fair value of $11 million, $16 million and $18 million, respectively.

Total fair value of debt (excluding capital lease obligations) at December 31, 2014 and 2013 was $4.59 billion and $4.28 billion, respectively. For publicly-traded debt, estimates of fair value are based on market prices. Since our publicly-traded debt is not actively traded, the fair value measurement was classified within Level 2 of the fair value hierarchy. For other debt, fair value is estimated based on rates currently available to us for debt with similar terms and remaining maturities. Therefore, the fair value measurement of our other debt was classified within Level 2 of the fair value hierarchy. The carrying amounts reported in the Consolidated Balance Sheets for cash and cash equivalents, accounts receivable and accounts payable approximate fair value because of the immediate or short-term maturities of these financial instruments.