Fair Value of Financial Instruments

9 Months Ended

Sep. 30, 2011

Fair Value of Financial Instruments [Abstract]

Fair Value of Financial Instruments

11. Fair Value of Financial Instruments

GAAP establishes a fair value hierarchy that prioritizes the inputs to valuation methods used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are the following:

Level 1: Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities;

Level 2: Quoted prices in markets that are not active, or inputs which are observable, either directly or indirectly, for substantially the full term of the asset or liability; and

Level 3: Prices or valuation techniques requiring inputs that are both significant to the fair value measurement and unobservable (i.e. supported by little or no market activity).

The following table summarizes our financial assets and liabilities that are measured at fair value on a recurring basis and the fair value measurements, by level, within the fair value hierarchy used at September 30, 2011:

			Fair Value Measurements Using:
					Significant Other		Significant
			Quoted Prices in		Observable		Unobservable
			Active Markets		Inputs		Inputs
(in thousands)	Fair Value		(Level 1)		(Level 2)		(Level 3)
Assets:
Investments — equity securities	$	1,937	$	1,937	$	—	$	—
Investments — other	$	1,751	$	1,751	$	—	$	—
Mark-to-market energy assets, including put option	$	1,229	$	—	$	1,229	$	—
Liabilities:
Mark-to-market energy liabilities	$	956	$	—	$	956	$	—

The following table summarizes our financial assets and liabilities that are measured at fair value on a recurring basis and the fair value measurements, by level, within the fair value hierarchy used at December 31, 2010:

			Fair Value Measurements Using:
					Significant Other		Significant
			Quoted Prices in		Observable		Unobservable
			Active Markets		Inputs		Inputs
(in thousands)	Fair Value		(Level 1)		(Level 2)		(Level 3)
Assets:
Investments — equity securities	$	1,515	$	1,515	$	—	$	—
Investments — other	$	2,521	$	2,521	$	—	$	—
Mark-to-market energy assets, including put option	$	1,642	$	—	$	1,642	$	—
Liabilities:
Mark-to-market energy liabilities	$	1,492	$	—	$	1,492	$	—

The following valuation techniques were used to measure fair value assets in the table above on a recurring basis as of September 30, 2011 and December 31, 2010:

Level 1 Fair Value Measurements:

Investments- equity securities - The fair values of these trading securities are recorded at fair value based on unadjusted quoted prices in active markets for identical securities.

Investments- other - The fair values of these investments, comprised of money market and mutual funds, are recorded at fair value based on quoted net asset values of the shares.

Level 2 Fair Value Measurements:

Mark-to-market energy assets and liabilities — These forward contracts are valued using market transactions in either the listed or over the counter (“OTC”) markets.

Propane put option — The fair value of the propane put option is determined using market transactions for similar assets and liabilities in either the listed or OTC markets.

At September 30, 2011, there were no non-financial assets or liabilities required to be reported at fair value. We review our non-financial assets for impairment at least on an annual basis, as required.

Other Financial Assets and Liabilities

Financial assets with carrying values approximating fair value include cash and cash equivalents and accounts receivable. Financial liabilities with carrying values approximating fair value include accounts payable and other accrued liabilities and short-term debt. The carrying value of these financial assets and liabilities approximates fair value due to their short maturities and because interest rates approximate current market rates for short-term debt.

At September 30, 2011, long-term debt, which includes the current maturities of long-term debt, had a carrying value of $126.3 million, compared to a fair value of $150.4 million, using a discounted cash flow methodology that incorporates a market interest rate based on published corporate borrowing rates for debt instruments with similar terms and average maturities, with adjustments for duration, optionality, and risk profile. At December 31, 2010, long-term debt, including the current maturities, had a carrying value of $98.9 million, compared to the estimated fair value of $113.4 million.