Quarterly report pursuant to Section 13 or 15(d)

FAIR VALUE MEASUREMENTS

v2.4.0.8
FAIR VALUE MEASUREMENTS
9 Months Ended
Sep. 30, 2013
Fair Value Disclosures [Abstract]  
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS
The fair value of an asset or liability is the price that would be received to sell an asset or transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The Company utilizes a fair value hierarchy that maximizes the use of observable inputs and minimizes the use of unobservable inputs when measuring fair value and defines three levels of inputs that may be used to measure fair value. Level 1 inputs are quoted prices in active markets for identical assets or liabilities. Level 2 inputs are inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly, including quoted prices for similar assets or liabilities in active markets, quoted prices in markets that are not active, inputs other than quoted prices that are observable for the asset or liability, or inputs derived from observable market data. Level 3 inputs are unobservable inputs that are supported by little or no market activity and are significant to the fair value of the assets or liabilities.
The Company’s financial assets and liabilities that are measured at fair value on a recurring basis were as follows (in thousands):
 
Level 1
 
Level 2
 
Level 3
December 31, 2012
 
 
 
 
 
LIABILITIES
 
 
 
 
 
Derivative instruments (included in other current liabilities) (1)
$

 
$
1,025

 
$

 
 
 
 
 
 
September 30, 2013
 
 
 
 
 
ASSETS
 
 
 
 
 
Marketable securities (included in other receivables)
$
83

 
$

 
$

LIABILITIES
 
 
 
 
 
Derivative instruments (included in other current liabilities) (1)

 
712

 


____________________
(1) The fair value of the Company’s derivative instruments was estimated using market data gathered by a third party financial institution, adjusted for market and credit risks applicable to the Company.
The estimated fair values of the Company’s other financial assets and liabilities were as follows (in thousands): 
 
 
 
Estimated Fair Value
 
Carrying
Amount
 
Level 1
 
Level 2
 
Level 3
December 31, 2012
 
 
 
 
 
 
 
ASSETS
 
 
 
 
 
 
 
Cash and cash equivalents
$
11,505

 
$
11,505

 
$

 
$

Notes receivable from other business ventures (included in other
 receivables and other assets)
925

 
925

 

 

LIABILITIES
 
 
 
 
 
 
 
Long-term debt, including current portion
279,735

 

 
283,120

 

 
 
 
 
 
 
 
 
September 30, 2013
 
 
 
 
 
 
 
ASSETS
 
 
 
 
 
 
 
Cash and cash equivalents
$
22,517

 
$
22,517

 
$

 
$

Notes receivable from other business ventures (included in other
  receivables and other assets)
642

 
642

 

 

LIABILITIES
 
 
 
 
 
 
 
Long-term debt, including current portion
242,816

 

 
246,670

 

The carrying values of cash and cash equivalents, accounts receivable, escrow deposits, notes receivable from other business ventures and accounts payable approximate fair value. The fair value of the Company’s long-term debt was estimated using discounted cash flow analysis based on estimated current rates for similar types of arrangements. Considerable judgment was required in developing certain of the estimates of fair value and, accordingly, the estimates presented herein are not necessarily indicative of the amounts that the Company could realize in a current market exchange.