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FAIR VALUE OF FINANCIAL ASSETS AND FINANCIAL LIABILITIES (Tables)
12 Months Ended
Dec. 31, 2011
Fair Value Disclosures [Abstract]  
Fair value of assets and liabilities
For financial assets and financial liabilities measured at fair value on a recurring basis, information about the fair value measurements for each major category is as follows (in thousands):

As of December 31, 2011
Total
 
Level 1
 
Level 2
 
Level 3
Assets
 
 
 
 
 
 
 
Available-for-Sale Securities (A)
$
6,677

 
$
619

 
$
6,058

 
$

Derivatives – Energy Related Assets (B)
45,596

 
24,689

 
16,582

 
4,325

 
$
52,273

 
$
25,308

 
$
22,640

 
$
4,325

 
 
 
 
 
 
 
 
Liabilities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Derivatives – Energy Related Liabilities (B)
$
46,105

 
$
22,495

 
$
13,327

 
$
10,283

Derivatives – Other (C)
14,046

 

 
14,046

 

 
$
60,151

 
$
22,495

 
$
27,373

 
$
10,283


As of December 31, 2010
Total
 
Level 1
 
Level 2
 
Level 3
Assets
 
 
 
 
 
 
 
Available-for-Sale Securities (A)
$
6,720

 
$
6,720

 
$

 
$

Derivatives – Energy Related Assets (B)
51,069

 
21,204

 
24,878

 
4,987

 
$
57,789

 
$
27,924

 
$
24,878

 
$
4,987

 
 
 
 
 
 
 
 
 Liabilities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Derivatives – Energy Related Liabilities (B)
$
50,938

 
$
19,513

 
$
23,275

 
$
8,150

Derivatives – Other (C)
7,404

 

 
7,404

 

 
$
58,342

 
$
19,513

 
$
30,679

 
$
8,150


(A) Available-for-Sale Securities include securities that are traded in active markets and securities that are not traded publicly.  The securities traded in active markets are valued using the quoted principal market close prices that are provided by the trustees and are categorized in Level 1 in the fair value hierarchy.  The remaining securities consist of funds that are not publicly traded.  These funds, which consist of stocks and bonds that are traded individually in active markets, are valued using quoted prices for similar assets and are categorized in Level 2 in the fair value hierarchy.

(B) Derivatives – Energy Related Assets and Liabilities are traded in both exchange-based and non-exchange-based markets. Exchange-based contracts are valued using unadjusted quoted market sources in active markets and are categorized in Level 1 in the fair value hierarchy. Certain non-exchange-based contracts are valued using indicative price quotations available through brokers or over-the-counter, on-line exchanges and are categorized in Level 2. These price quotations reflect the average of the bid-ask mid-point prices and are obtained from sources that management believes provide the most liquid market. For non-exchange-based derivatives that trade in less liquid markets with limited pricing information, model inputs generally would include both observable and unobservable inputs. In instances where observable data is unavailable, management considers the assumptions that market participants would use in valuing the asset or liability. This includes assumptions about market risks such as liquidity, volatility and contract duration. Such instruments are categorized in Level 3 as the model inputs generally are not observable. Management reviews and corroborates the price quotations to ensure the prices are observable which includes consideration of actual transaction volumes, market delivery points, bid-ask spreads and contract duration.

(C) Derivatives – Other include interest rate swaps that are valued using quoted prices on commonly quoted intervals, which are interpolated for periods different than the quoted intervals, as inputs to a market valuation model. Market inputs can generally be verified and model selection does not involve significant management judgment.

Changes in fair value of significant unobservable inputs
The changes in fair value measurements of Derivatives – Energy Related Assets and Liabilities at December 31, 2011, using significant unobservable inputs (Level 3), are as follows (in thousands):

 
 
Year Ended December 31, 2011
Balance at January 1, 2011
 
$
(3,163
)
   Total gains and (losses) realized/unrealized included in earnings
 
(7,988
)
   Transfers in and/or out of Level 3, net
 

   Settlements
 
5,193

 
 
 
Balance at December 31, 2011
 
$
(5,958
)

 
 
Year Ended December 31, 2010
Balance at January 1, 2010
 
$
(10,299
)
   Total gains and (losses) realized/unrealized included in earnings
 
(774
)
   Transfers in and/or out of Level 3, net
 

   Settlements
 
7,910

 
 
 
Balance at December 31, 2010
 
$
(3,163
)