Fair Value Measurements

12 Months Ended

Dec. 31, 2011

Fair Value Measurements [Abstract]

Fair Value Measurements

Note 7    Fair Value Measurements

As defined in the ASC, 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 measure.

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, 2011. 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. 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.

Recurring Fair Value Measurements

	Fair Value as of December 31, 2011
	Level 1		Level 2		Level 3		Total
	(In thousands)
Assets:
Short-term investments:
Available-for-sale equity securities — energy industry	$	60,923	$	10,510	$	—	$	71,433
Available-for-sale debt securities
Commercial paper and CDs		1,230		—		—		1,230
Corporate debt securities		—		51,300		—		51,300
Mortgage-backed debt securities		—		309		—		309
Mortgage-CMO debt securities		—		2,547		—		2,547
Asset-backed debt securities		2,495		—		—		2,495
Trading securities — energy industry		11,600		—		—		11,600
Total short-term investments	$	76,248	$	64,666	$	—	$	140,914
Liabilities:
Derivative contract	$	—	$	1,281	$	—	$	1,281

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 goodwill, oil and gas financing receivables, intangible assets and other long-lived assets, assets acquired and liabilities assumed in a business combination, and asset retirement obligations.

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 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:

	December 31,
	2011				2010
	Carrying Value		Fair Value		Carrying Value		Fair Value
	(In thousands)
5.375% senior notes due August 2012(1)	$	274,604	$	281,188	$	273,977	$	291,500
6.15% senior notes due February 2018		967,490		1,113,986		966,276		1,041,008
9.25% senior notes due January 2019		1,125,000		1,419,514		1,125,000		1,393,943
5.00% senior notes due September 2020		697,343		734,475		697,037		678,335
4.625% senior notes due September 2021		697,667		708,176		—		—
0.94% senior exchangeable notes due May 2011		—		—		1,378,178		1,403,315
Subsidiary preferred stock		69,188		68,625		69,188		68,625
Revolving credit facilities		860,000		860,000		—		—
Other		1,712		1,712		2,676		2,676
	$	4,693,004	$	5,187,676	$	4,512,332	$	4,879,402

(1) Includes $.3 million and $.7 million as of December 31, 2011 and 2010, respectively, related to the unamortized loss on the interest rate swap that was unwound during the fourth quarter of 2005.

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, 2011, our short-term investments were carried at fair market value and included $129.3 million and $11.6 million in securities classified as available-for-sale and trading, respectively. As of December 31, 2010, our short-term investments were carried at fair market value and included $139.9 million and $19.6 million in securities classified as available-for-sale and trading, respectively. The carrying values of our long-term investments that are accounted for using the equity method of accounting approximate fair value. The fair value of these long-term investments totaled $5.9 million and $7.4 million as of December 31, 2011 and 2010, respectively.