FAIR VALUE MEASUREMENTS

6 Months Ended

Jun. 30, 2012

Fair Value Disclosures [Abstract]

Fair Value Disclosures [Text Block]

8. FAIR VALUE MEASUREMENTS

Derivative Instruments and Hedging Activities

Our derivative instruments are valued using third-party broker or counterparty statements, derived from pricing models using inputs based upon market information, including contractual terms, market prices and yield curves. The inputs to the valuation pricing models are observable in the market, and as such are generally classified as Level 2 in the fair value hierarchy.

Restructuring Charges

As described in Note 5, “Impairment Losses and Restructuring Charges,” during the years ended December 31, 2011 and 2010, we closed several facilities. These costs were valued using a discounted cash flow model. The cash flows consist of the future lease payment obligations required under the lease agreement. We have assumed that we can sublease our facility in Grand Junction for a portion of the remaining lease term and sell our facility in Laramie, Wyoming based on our knowledge of the respective marketplaces, as well as our historical ability to sublease our facilities in other locations in which we operate. In the future, if we sublease for periods that differ from our assumption or if an actual buy-out of a lease differs from our estimate, we may be required to record a gain or loss in the Consolidated Statements of Operations and Other Comprehensive Income (Loss). Future cash flows also include estimated property taxes through the remainder of the lease term, which are valued based upon historical tax payments. Given that the restructuring charges were valued using our internal estimates using a discounted cash flow model, we have classified the accrued restructuring costs as Level 3 in the fair value hierarchy.

Long-Lived Assets

As described in Note 5, “Impairment Losses and Restructuring Charges,” during the quarter ended June 30, 2012, we recorded impairment losses in our Domestic segment, due to the impairment of certain long-lived assets for which the carrying value of those assets is not recoverable based upon our estimated future cash flows. We periodically, on at least an annual basis, evaluate potential impairments of our long-lived assets. In our annual evaluation or when we determine that the carrying value of a long-lived asset may not be recoverable, based upon the existence of one or more indicators of impairment, we evaluate the projected undiscounted cash flows related to the assets. If these cash flows are less than the carrying values of the assets, we measure the impairment based on the excess of the carrying value of the long-lived asset over the long-lived asset’s fair value. Where appropriate we use a probability-weighted approach to determine our future cash flows, based upon our estimate of the likelihood of certain scenarios, primarily whether we expect to sell new business within a current location. These estimates are consistent with our internal projections and external communications and public disclosures. The measurement of the fair value of the buildings was based upon our third-party real estate broker’s non-binding estimate of fair value using the observable market information regarding sale prices of comparable assets. The fair value of these long-lived assets after the impairment charges were $66. Given that the impairment losses were valued using internal estimates of future cash flows or upon non-identical assets using significant unobservable inputs, we have classified the remaining fair value of long-lived assets as Level 3 in the fair value hierarchy.

In 2010, we committed to a plan to sell the buildings and land at our closed facilities in Laramie, Wyoming and Greeley, Colorado, as well as in 2012, we committed to sell the facilities in Enid, Oklahoma. We received estimates of the selling prices of this real estate, and have reduced the value of the buildings and land to fair value, less costs to sell, or approximately $4,969 at June 30, 2012. The measurement of the fair value of the buildings was based upon our third-party real estate broker’s non-binding estimate of fair value using the observable market information regarding sale prices of comparable assets. As these inputs to the determination of fair value are based upon non-identical assets and use significant unobservable inputs, we have classified the assets as Level 3 in the fair value hierarchy.

Fair Value Hierarchy

The following tables set forth our assets and liabilities measured at fair value on a recurring basis and a non-recurring basis by level within the fair value hierarchy. Assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement.

	Assets Measured at Fair Value
	on a Recurring Basis as of June 30, 2012
	Level 1		Level 2		Level 3		Total
Assets:
Foreign exchange contracts	$	-	$	798	$	-	$	798
Total fair value of assets measured on a recurring basis	$	-	$	798	$	-	$	798
Liabilities:
Foreign exchange contracts	$	-	$	147	$	-	$	147
Total fair value of liabilities measured on a recurring basis	$	-	$	147	$	-	$	147

	Assets Measured at Fair Value
	on a Recurring Basis as of December 31, 2011
	Level 1		Level 2		Level 3		Total
Assets:
Foreign exchange contracts	$	-	$	106	$	-	$	106
Total fair value of assets measured on a recurring basis	$	-	$	106	$	-	$	106
Liabilities:
Foreign exchange contracts	$	-	$	616	$	-	$	616
Total fair value of liabilities measured on a recurring basis	$	-	$	616	$	-	$	616

	Assets and Liabilities Measured at Fair Value on a
	Non-Recurring Basis as of June 30, 2012
	Level 1		Level 2		Level 3		Total
Assets:
Assets held for sale	$	-	$	-	$	4,969	$	4,969
Property, plant and equipment, net		-		-		66		66
Total fair value of assets measured on a non-recurring basis	$	-	$	-	$	5,035	$	5,035
Liabilities:
Accrued restructuring costs	$	-	$	-	$	1,308	$	1,308
Total fair value of liabilities measured on a non-recurring basis	$	-	$	-	$	1,308	$	1,308

	Assets and Liabilities Measured at Fair Value on a
	Non-Recurring Basis as of December 31, 2011
	Level 1		Level 2		Level 3		Total
Assets:
Assets held for sale	$	-	$	-	$	4,102	$	4,102
Property, plant and equipment, net		-		-		1,606		1,606
Total fair value of assets measured on a non-recurring basis	$	-	$	-	$	5,708	$	5,708
Liabilities:
Accrued restructuring costs	$	-	$	-	$	5,875	$	5,875
Total fair value of liabilities measured on a non-recurring basis	$	-	$	-	$	5,875	$	5,875