Fair Value Measurements

12 Months Ended

Dec. 31, 2014

Fair Value Measurements

Fair Value Measurements

Note 8 Fair Value Measurements

       Fair value is the price that would be received upon sale of an asset or paid upon transfer of a liability in an orderly transaction between market participants at the measurement date (exit price). We utilize market data or assumptions that market participants would use in pricing the asset or liability, including assumptions about risk and the risks inherent in the inputs to the valuation technique. These inputs can be readily observable, market-corroborated, or generally unobservable. We primarily apply the market approach for recurring fair value measurements and endeavor to utilize the best information available. Accordingly, we employ valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs. The use of unobservable inputs is intended to allow for fair value determinations in situations where there is little, if any, market activity for the asset or liability at the measurement date. We are able to classify fair value balances utilizing a fair value hierarchy based on the observability of those inputs. Under the fair value hierarchy:

• Level 1 measurements include unadjusted quoted market prices for identical assets or liabilities in an active market;

• Level 2 measurements include quoted market prices for identical assets or liabilities in an active market that have been adjusted for items such as effects of restrictions for transferability and those that are not quoted but are observable through corroboration with observable market data, including quoted market prices for similar assets; and

• Level 3 measurements include those that are unobservable and of a subjective nature.

        The following table sets forth, by level within the fair value hierarchy, our financial assets and liabilities that are accounted for at fair value on a recurring basis as of December 31, 2014. Our debt securities could transfer into or out of a Level 1 or 2 measure depending on the availability of independent and current pricing at the end of each quarter. During 2014, there were no transfers of our financial assets between Level 1 and Level 2 measures. Our financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement.

	Fair Value as of December 31, 2014
	Level 1		Level 2		Level 3		Total
	(In thousands)
Assets:
Short-term investments:
Available-for-sale equity securities from energy industry	$	35,002	$	—	$	—	$	35,002
Available-for-sale debt securities:
Mortgage-CMO debt securities		—		18		—		18
Total short-term investments	$	35,002	$	18	$	—	$	35,020

Nonrecurring Fair Value Measurements

       Fair value measurements were applied with respect to our nonfinancial assets and liabilities measured on a nonrecurring basis, which would consist of measurements primarily to assets held for sale, goodwill, intangible assets and other long-lived assets, assets acquired and liabilities assumed in a business combination and our pipeline contractual commitment.

Fair Value of Financial Instruments

       The fair value of our financial instruments has been estimated in accordance with GAAP. The fair value of our long-term debt, revolving credit facility, commercial paper and subsidiary preferred stock is estimated based on quoted market prices or prices quoted from third-party financial institutions. The carrying and fair values of these liabilities were as follows:

	As of December 31,
	2014							2013
	Effective Interest Rate			Carrying Value		Fair Value		Effective Interest Rate			Carrying Value		Fair Value
	(In thousands, except interest rates)
2.35% senior notes due September 2016		2.56	%	$	349,887	$	346,980		2.56	%	$	349,820	$	354,694
6.15% senior notes due February 2018		6.42	%		930,693		991,920		6.42	%		969,928		1,097,480
9.25% senior notes due January 2019		9.33	%		339,607		403,531		9.33	%		339,607		428,733
5.00% senior notes due September 2020		5.20	%		698,253		687,953		5.20	%		697,947		731,955
4.625% senior notes due September 2021		4.75	%		698,388		661,619		4.75	%		698,148		709,793
5.10% senior notes due September 2023		5.26	%		348,893		332,759		5.26	%		348,765		349,731
Subsidiary preferred stock		0.00	%		—		—		4.00	%		69,188		69,000
Revolving credit facility		3.47	%		450,000		450,000		2.28	%		170,000		170,000
Commercial paper		0.59	%		533,119		533,119		0.45	%		329,844		329,844
Other		0.00	%		6,209		6,209		0.00	%		10,243		10,243
				$	4,355,049	$	4,414,090				$	3,983,490	$	4,251,473

        The fair values of our cash equivalents, trade receivables and trade payables approximate their carrying values due to the short-term nature of these instruments.

       As of December 31, 2014, our short-term investments were carried at fair market value and included $35.0 million in securities classified as available-for-sale. As of December 31, 2013, our short-term investments were carried at fair market value and included $117.2 million in securities classified as available-for-sale.