Note 8 - Fair Value Measurements

6 Months Ended

Jun. 30, 2012

Fair Value Disclosures [Text Block]

8.           Fair Value Measurement

     The Company adopted ASC 820, which defines fair value, establishes a framework for measuring fair value and requires additional disclosures about fair value measurements.  The framework that is set forth in this standard is applicable to the fair value measurements where it is permitted or required under other accounting pronouncements.

     ASC 820 defines fair value as the exit price, which is the price that would be received to sell an asset or paid to transfer a liability in a transaction between market participants at the measurement date.  ASC 820 establishes a three-tier fair value hierarchy that prioritizes inputs to valuation techniques used for fair value measurement.

· Level 1 consists of observable market data in an active market for identical assets or liabilities.

· Level 2 consists of observable market data, other than that included in Level 1, that is either directly or indirectly observable.

· Level 3 consists of unobservable market data.  The input may reflect the assumptions of the Company, not a market participant, if there is little available market data and the Company’s own assumptions are considered by management to be the best available information.

    In accordance with ASC 820, the following table represents the Company’s fair value hierarchy for its financial assets and liabilities.

	December 31, 2011
	Fair Value		Level 1		Level 2		Level 3
Liabilities
Interest rate swaps	$	241,438	$	-	$	241,438	$	-
Total liabilities	$	241,438	$	-	$	241,438	$	-

	June 30, 2012
	Fair Value		Level 1		Level 2		Level 3
Liabilities
Interest rate swaps	$	-	$	-	$	-	$	-
Long-term notes payable		261,915,995		-		103,497,657		158,418,338
Total liabilities	$	261,915,995	$	-	$	103,497,657	$	158,418,338

     The interest rate swaps were valued at the end of 2011 based on available market information. The Company’s two interest rate swaps matured on February 8, 2012. See Note 4, Derivative Activities, above.   The Company’s long-term notes payable consist of a term credit facility, senior subordinated notes as a component of IDS units, and senior subordinated notes held separately.  The Company assessed the fair value of both subordinated notes using quoted market prices for notes of similar terms and maturities.  Fair value of the term credit facility was calculated using the Company’s assumptions on interest rate risk related to expected future cash flows.  The terms and agreements of long-term debt are consistent of those contained in the notes to the Company’s consolidated financial statements included in the Company’s annual report on Form 10-K for the year ended December 31, 2011.

Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis

     The Company recorded fair value adjustments totaling approximately $153 million during second quarter of 2012. Fair value adjustments, based on hierarchy input Level 3, reduced the carrying value of property and equipment, goodwill, and intangible assets.  Fair value was determined using the income, market, and cost approaches to valuation.

     The following table presents the Company’s fair value hierarchy for its financial assets and liabilities on a nonrecurring basis.

	Fair Value Measurements Using
	6/30/2012		Level 1		Level 2		Level 3		Total Impairments
Description
Property and equipment, net	$	59,630,728	$	-	$	-	$	59,630,728	$	(2,874,000	)
Goodwill		44,956,840				-		44,956,840		(143,998,000	)
Intangible assets, net		10,328,865		-		-		10,328,865		(5,748,000	)
										(152,620,000	)

     The change in fair value from April 30, 2012 to June 30, 2012 is not material as additions during that period are at fair value.