Fair Value Measurements

9 Months Ended

Sep. 30, 2015

The Company’s financial instruments are measured and reported at their estimated fair value. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction. When available, the Company uses quoted prices in active markets to determine the fair values for its financial instruments (level one inputs), or absent quoted market prices, observable market-corroborated inputs over the term of the financial instruments (level two inputs). The Company does not have any unobservable inputs that are not corroborated by market inputs (level three inputs).

The Company holds marketable securities associated with its non-qualified retirement plan, which are valued based on readily available quoted market prices. The Company utilizes derivative instruments to manage its risk of changes in natural gas prices. The fair value of the natural gas derivative instruments are determined using market data of forward prices for all of the Company’s contracts. The estimated fair values for each type of instrument are presented below (in millions).



	September 30, 2015			Level One			Level Two			Level Three
Asset Class:
Mutual fund investments in a non-qualified retirement plan^(a)	$	1.6		$	1.6		$	—		$	—
Total Assets	$	1.6		$	1.6		$	—		$	—
Liability Class:
Liabilities related to non-qualified retirement plan	$	(1.6	)	$	(1.6	)	$	—		$	—
Derivatives – natural gas instruments	(2.6		)	—			(2.6		)	—
Total Liabilities	$	(4.2	)	$	(1.6	)	$	(2.6	)	$	—


(a)	Includes mutual fund investments of approximately 20% in the common stock of large-cap U.S. companies, approximately 5% in the common stock of small-cap U.S. companies, approximately 5% in international companies, approximately 5% in bond funds, approximately 35% in short-term investments and approximately 30% in blended funds.



	December 31, 2014			Level One			Level Two			Level Three
Asset Class:
Mutual fund investments in a non-qualified retirement plan^(a)	$	1.9		$	1.9		$	—		$	—
Total Assets	$	1.9		$	1.9		$	—		$	—
Liability Class:
Liabilities related to non-qualified retirement plan	$	(1.9	)	$	(1.9	)	$	—		$	—
Derivatives – natural gas instruments	(3.4		)	—			(3.4		)	—
Total Liabilities	$	(5.3	)	$	(1.9	)	$	(3.4	)	$	—


(a)	Includes mutual fund investments of approximately 15% in the common stock of large-cap U.S. companies, approximately 5% in the common stock of international companies, approximately 5% in bond funds, approximately 35% in short-term investments and approximately 40% in blended funds.

Cash and cash equivalents, accounts receivable (net of allowance for bad debts) and payables are carried at cost, which approximates fair value due to their liquid and short-term nature. The Company’s investments related to its nonqualified retirement plan of $1.6 million and $1.9 million as of September 30, 2015 and December 31, 2014, respectively, are stated at fair value based on quoted market prices. As of September 30, 2015, the estimated amount a third-party would pay for the fixed-rate 4.875% senior notes due July 2024, based on available trading information, totaled $231.3 million (level two) compared with the aggregate principal amount at maturity of $250.0 million. The estimated amount a third-party would pay at September 30, 2015 for the amounts outstanding under the credit agreement, based upon available bid information received from the Company’s lender, totaled $369.8 million (level two) compared with the aggregate principal balance of $373.5 million.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

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