Fair Value of Assets and Liabilities

12 Months Ended

Dec. 31, 2014

Fair Value of Assets and Liabilities

13. Fair Value of Assets and Liabilities

The table below presents certain of our assets carried at fair value at December 31, 2014, categorized by the level of inputs, as defined in the fair value hierarchy under GAAP, used in the valuation of each asset.


		Fair Value at Reporting Date Using
Description	Year Ended December 31, 2014	Quoted Prices in Active Markets for Identical Assets (Level 1)	Significant Other Observable Inputs (Level 2)	Significant Unobservable Inputs (Level 3)
Investment securities(1)	$ 43,160	$ 43,160	$—	$—

(1)

Our investment securities, consisting of our 3,420,000 shares of TA, which are included in other assets in our Consolidated Balance Sheets, are reported at fair value which is based on quoted market prices (Level 1 inputs). Our historical cost basis for these securities is $17,407. The unrealized gain for these securities as of December 31, 2014 is included in cumulative other comprehensive income in our Consolidated Balance Sheets.

In addition to the investment securities included in the table above, our financial instruments include our cash and cash equivalents, restricted cash, revolving credit facility, unsecured term loan, senior notes and security deposits. At December 31, 2014 and December 31, 2013, the fair values of these additional financial instruments were not materially different from their carrying values due to floating rate interest, except as follows:


	December 31, 2014				December 31, 2013
	Carrying		Fair		Carrying		Fair
	Amount		Value		Amount		Value
Senior Notes, due 2014 at 7.875%	$	-	$	-	$	300,000	$	304,035
Senior Notes, due 2015 at 5.125%		-		-		280,000		283,150
Senior Notes, due 2016 at 6.3%		275,000		287,680		275,000		297,443
Senior Notes, due 2017 at 5.625%		300,000		321,675		300,000		327,681
Senior Notes, due 2018 at 6.7%		350,000		386,755		350,000		399,560
Senior Notes, due 2022 at 5.0%		500,000		529,160		500,000		524,810
Senior Notes, due 2023 at 4.5%		300,000		306,516		300,000		289,950
Senior Notes, due 2024 at 4.65%		350,000		360,757		-		-
Senior Notes, due 2025 at 4.5%		350,000		353,701		-		-
Convertible Senior Notes, due 2027 at 3.8%		8,478		8,849		8,478		8,983
Unamortized discounts		(12,865)		-		(9,473)		-
Total financial liabilities	$	2,420,613	$	2,555,093	$	2,304,005	$	2,435,612

At December 31, 2014, we estimate the fair values of our unsecured senior notes using an average of the bid and ask price of our then outstanding issuances of senior notes (Level 1 inputs). We estimated the fair value of our convertible unsecured senior notes using discounted cash flow analysis and current prevailing market interest rates (Level 3 inputs) because no market quotes for these notes were available at December 31, 2014 and December 31, 2013.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

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