Financial Instruments

3 Months Ended

Mar. 31, 2013

Financial Instruments

Financial Instruments

NOTE 7 — Financial Instruments

Our financial instruments are classified and disclosed in one of the following three categories:

Level 1: Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities;

Level 2: Quoted prices in markets that are not active, or inputs which are observable, either directly or indirectly, for substantially the full term of the asset or liability;

Level 3: Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (i.e., supported by little or no market activity).

The following table summarizes the valuation of our financial instrument pricing levels as of March 31, 2013 and December 31, 2012:

	Total		Level 1		Level 2		Level 3
March 31, 2013
Available-for-sale securities	$	248,000	$	248,000	$	—	$	—
December 31, 2012
Available-for-sale securities	$	239,000	$	239,000	$	—	$	—

Our investments in available-for-sale securities consist of mutual funds.  These investments are included in other assets on our consolidated balance sheets.

We previously had an interest rate swap agreement effectively converting a portion of the outstanding borrowings under our revolving credit agreement to a fixed-rate, thereby hedging against the impact of potential interest rate changes on future interest expense.  The interest rate swap expired in April 2012.  We recognized $69,000, net of income taxes, in unrealized gains on our interest rate swap during the three months ended March 31, 2012.

The carrying amounts of other financial instruments reported in the balance sheet for current assets and current liabilities approximates their fair values because of the short maturity of these instruments.