FAIR VALUE MEASUREMENTS

3 Months Ended

Mar. 31, 2016

Fair Value Disclosures [Abstract]

FAIR VALUE MEASUREMENTS

3. FAIR VALUE MEASUREMENTS

We account for certain assets and liabilities at fair value. The hierarchy below lists three levels of fair value based on the extent to which inputs used in measuring fair value are observable in the market. We categorize each of our fair value measurements in one of these three levels based on the lowest level input that is significant to the fair value measurement in its entirety. These levels are:

· Level 1: Quoted prices in active markets for identical assets or liabilities;

· Level 2: Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities; and

· Level 3: Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.

Assets and liabilities measured at fair value on a recurring basis are summarized as follows (in thousands): 

	Level 1		Level 2		Level 3		Total
March 31, 2016:
Foreign currency contracts (note 6)	$	—	$	147	$	—	$	147
Interest rate swap (note 6)		—		581		—		581
Asset retirement obligations(1)		—		—		2,655		2,655
December 31, 2015:
Foreign currency contracts (note 6)		—		1,019		—		1,019
Interest rate swap (note 6)		—		728		—		728
Asset retirement obligations(1)		—		—		2,803		2,803

⁽¹⁾ We calculate the fair value of asset retirement obligations by discounting the estimated amount using the current Treasury bill rate adjusted for our credit non-performance. At March 31, 2016 and December 31, 2015, the balance of the asset retirement obligation was $0 and $0.2 million, respectively, which we included in “Other current liabilities,” and $2.7 million and $2.6 million, respectively, which we included in “Other long-term liabilities,” in the accompanying consolidated balance sheets.

The following table provides a summary of changes in our Level 3 asset retirement obligations for the three months ended March 31, 2016 (in thousands): 

Balance, January 1, 2016	$	2,803
Accretion		52
Payments		(174	)
Gain on settlement		(26	)
Balance, March 31, 2016	$	2,655

The fair values of our other Level 3 debt liabilities, estimated using a discounted cash flow analysis based on incremental borrowing rates for similar types of borrowing arrangements, are as follows (in thousands): 

	March 31, 2016				December 31, 2015
	Carrying Amount		Fair  Value		Carrying Amount		Fair  Value
Term loan	$	293,250	$	299,000	$	294,000	$	303,000
Revolving credit facility		32,500		31,800		31,000		30,400