Fair Value

6 Months Ended

Jun. 30, 2011

Fair Value

9.  Fair Value

The Company defines fair value as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The Company applies the following fair value hierarchy, which prioritizes the inputs used to measure fair value into three levels as follows:

Level 1-Quoted prices in active markets for identical assets or liabilities.

Level 2-Observable inputs other than quoted prices in active markets for identical assets and liabilities, quoted prices for identical or similar assets or liabilities in inactive markets, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.

Level 3-Inputs that are generally unobservable and typically reflect management’s estimates of assumptions that market participants would use in pricing the asset or liability.

The following table presents the Company’s assets and liabilities measured at fair value on a recurring basis as of June 30, 2011 and December 31, 2010 (in thousands):

	Level 1		Level 2		Level 3
Total	As of June 30, 2011:
Liabilities:
Interest rate swap	$	-	$	120	$	-
Total	As of December 31, 2010:
Liabilities:
Interest rate swap	$	-	$	64	$	-

The estimate of fair values for the interest rate swap is based on applicable and commonly used pricing models and prevailing financial market information as of June 30, 2011 and December 31, 2010.

The Company also has financial assets and liabilities that are not required to be remeasured to fair value on a recurring basis.  The Company’s cash and cash equivalents carrying value approximates fair market value. In addition, the term loans and revolving credit facility are both variable rate debt instruments and the fair value approximates the carrying values as of June 30, 2011 and December 31, 2010.