FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS

3 Months Ended

Mar. 31, 2012

FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS

FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS

NOTE B — FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS

Financial Instruments

The following table presents the components of cash and cash equivalents, short-term investments and restricted funds:

	March 31		December 31
	2012		2011
	($ thousands)
Cash and cash equivalents
Cash deposits(1)	$	80,127	$	98,258
Variable rate demand notes(1)(2)	29,786		29,735
Money market funds(3)	28,603		13,302
	$	138,516	$	141,295
Short-term investments
Certificates of deposit(1)	$	45,167	$	33,960
Restricted cash equivalents and short-term investments(4)
Cash deposits(1)	$	4,003	$	11,842
Money market funds(3)	5,163		5,375
Certificates of deposit(1)	20,378		35,476
	$	29,544	$	52,693

(1)Recorded at cost plus accrued interest, which approximates fair value.

(2)Amounts may be redeemed on a daily basis as presented to the original issuer.

(3)Recorded at fair value as determined by quoted market prices (see amounts presented in the table of financial assets measured at fair value within this note).

(4)Amounts restricted for use are subject to change based on the requirements of the Company’s collateralized facilities (see Note D).

The Company’s long-term investment financial instruments are presented in the table of financial assets measured at fair value within this note.

The fair value of the Company’s obligations under its notes payable arrangements approximate the amounts recorded in the consolidated balance sheets at March 31, 2012 and December 31, 2011 (see Note D). Fair value was determined using a present value income approach based on quoted interest rates from lending institutions with which the Company would enter into similar transactions (Level 3 of the fair value hierarchy).

Concentrations of Credit Risk of Financial Instruments

The Company is potentially subject to concentrations of credit risk related to its cash, cash equivalents and short-term investments. The Company reduces credit risk by placing its cash, cash equivalents and short-term investments with major financial institutions and corporate issuers that have high credit ratings and by investing unrestricted short-term investments primarily in FDIC-insured certificates of deposit with varying original maturities of ninety-one days to one year. However, certain cash deposits and certificates of deposit, including those pledged as collateral for outstanding letters of credit (see Note D), may exceed federally insured limits. At March 31, 2012 and December 31, 2011, cash, cash equivalents and certificates of deposit of $107.8 million and $98.8 million, respectively, were not FDIC insured.

Financial Assets Measured at Fair Value

The following table presents the assets that are measured at fair value on a recurring basis, based upon quoted prices for identical assets in active markets (Level 1 of the fair value hierarchy):

	March 31		December 31
	2012		2011
	($ thousands)
Money market funds(1)	$	33,766	$	18,677
Equity, bond and money market mutual funds held in trust related to the Voluntary Savings Plan(2)	2,936		3,614
	$	36,702	$	22,291

(1)Included in cash equivalents and restricted cash equivalents.

(2)Nonqualified deferred compensation plan investments consist of U.S. and international equity mutual funds, government and corporate bond mutual funds and money market funds which are held in a trust with a third-party brokerage firm. Quoted market prices are used to determine fair values of the investments which are included in other long-term assets, with a corresponding liability reported within other long-term liabilities.