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Fair Value Measurement Disclosures (Tables)
3 Months Ended
Mar. 31, 2015
Fair Value Disclosures [Abstract]  
Estimated Fair Values of Financial Instrument

The estimated fair values of our financial instruments are as follows (in millions):

 

 

 

 

March 31, 2015

 

 

December 31, 2014

 

 

Fair Value

 

Carrying

 

 

Fair

 

 

Carrying

 

 

Fair

 

Description

Hierarchy

 

Amount

 

 

Value

 

 

Amount

 

 

Value

 

12.5% senior secured notes due 2017

Level 2

 

$

275.0

 

 

 

288.2

 

 

$

275.0

 

 

 

286.5

 

10 3/4% Series B cumulative exchangeable

     redeemable preferred stock

Level 3

 

 

138.8

 

 

 

58.1

 

 

 

136.4

 

 

 

61.8

 

Promissory note payable, included in other long-

     term debt

Level 3

 

 

5.2

 

 

 

4.5

 

 

 

5.2

 

 

 

4.5

 

 

Fair Value of Derivative Instruments

The following table represents required quantitative disclosures regarding fair values of our derivative instruments (in thousands).

 

 

 

 

 

 

Fair value measurements at March 31, 2015

 

 

 

 

 

 

Liabilities

 

Description

March 31, 2015

carrying value and

balance sheet

location of derivative

instruments

 

 

Quoted prices in

active markets

for identical

instruments

(Level 1)

 

 

Significant

other

observable

inputs

(Level 2)

 

 

Significant

unobservable

inputs

(Level 3)

 

Derivative designated as a cash flow

hedging instrument:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest rate swap liability

$

376

 

 

 

 

 

 

376

 

 

 

 

 

 

 

 

 

 

 

Fair value measurements at December 31, 2014

 

 

 

 

 

 

Liabilities

 

Description

December 31, 2014

carrying value  and

balance sheet

location of derivative

instruments

 

 

Quoted prices in

active markets

for identical

instruments

(Level 1)

 

 

Significant

other

observable

inputs

(Level 2)

 

 

Significant

unobservable

inputs

(Level 3)

 

Derivative designated as a cash flow

hedging instrument:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest rate swap liability

$

408

 

 

 

 

 

 

408

 

 

 

 

 

Interest Rate Swaps

The interest rate swap fair value is derived from the present value of the difference in cash flows based on the forward-looking LIBOR yield curve rates, as compared to our fixed rate applied to the hedged amount through the term of the agreement, less adjustments for credit risk. There were no transfers between Levels during the three-month periods ended March 31, 2015 and 2014, respectively.

 

 

 

Three-Months Ended

 

 

 

March 31,

 

Interest rate swaps

 

2015

 

 

2014

 

Gain recognized in other comprehensive loss

     (effective portion)

 

$

32

 

 

 

39