FINANCIAL INSTRUMENTS

12 Months Ended

Dec. 31, 2011

NOTE 9. FINANCIAL INSTRUMENTS

At December 31, 2011 and 2010, the Company's financial instruments consisted of cash and cash equivalents, receivables, franchise notes receivable, accounts payable, certain accrued liabilities and long-term debt. The carrying amount of cash and cash equivalents, receivables, accounts payable and accrued liabilities approximates their respective fair values because of the short maturities of these instruments. Based on the interest rates currently available and their underlying risk, the carrying value of the franchise notes receivable approximates their fair value. These fair values are reflected net of reserves, which are recognized according to Company policy. The Company determined the estimated fair values of its debt by using currently available market information and estimates and assumptions, where appropriate. Accordingly, as considerable judgment is required to determine these estimates, changes in the assumptions or methodologies may have an effect on these estimates. The actual and estimated fair values of the Company's financial instruments are as follows:

	Year Ended December 31,

	2011				2010
	Carrying Amount		Fair Value		Carrying Amount		Fair Value
	(in thousands)
Cash and cash equivalents	$	128,438	$	128,438	$	193,902	$	193,902
Receivables, net		114,190		114,190		102,874		102,874
Franchise notes receivable, net		6,510		6,510		4,496		4,496
Accounts payable		124,416		124,416		98,662		98,662
Long-term debt (including current portion)		901,542		892,526		1,058,499		1,007,070