Fair Values of Financial Instruments

3 Months Ended

Mar. 31, 2012

Fair Values of Financial Instruments

13. Fair Values of Financial Instruments

The carrying values of cash and cash equivalents, trade receivables and accounts payable approximate fair value due to the short-term maturity of these items. These fair value estimates are considered Level 1 fair value estimates in the fair value hierarchy of fair value accounting.

The estimated fair value of the Company’s outstanding debt balances (including current portion) as of March 31, 2012 and December 31, 2011 is set forth below (in thousands):

	March 31, 2012				December 31, 2011
	Carrying Value		Fair Value		Carrying Value		Fair Value
Borrowings under Credit Agreement:
Revolving credit facility	$	108,500	$	108,500	$	110,000	$	110,000
Term loan facility		90,000		90,000		92,500		92,500
Senior Notes		300,000		322,849		300,000		315,942
Total debt	$	498,500	$	521,349	$	502,500	$	518,442

The carrying value of the balance outstanding under the term loan facility and revolving credit facility approximates fair value as both facilities have a floating interest rate. The fair value of the 4.97% Series A Senior Notes at March 31, 2012 and December 31, 2011 was measured based on discounted cash flows associated with the Senior Notes using current market rates of interest at those respective dates. The current market rates used in measuring this fair value were 3.91% at March 31, 2012 and 4.07% at December 31, 2011. These fair value estimates are based on observable market inputs and are considered Level 2 fair value estimates in the fair value hierarchy of fair value accounting.