Fair Value Measurements

12 Months Ended

Dec. 31, 2012

Fair Value Measurements [Abstract]

Fair Value Measurements

Note 8: Fair Value Measurements

ASC 820-10 establishes a framework for measuring fair value, clarifies the definition of fair value and expands disclosures about fair-value measurements. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants (i.e. the exit price). That framework provides a fair value hierarchy that prioritizes the inputs to valuation techniques 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 described below:

Level 1 Inputs to the valuation methodology are unadjusted quoted prices for identical assets or liabilities in active markets that the Company has the ability to access.

Level 2 Inputs to the valuation methodology include:

• Quoted prices for similar assets and liabilities in active markets;

• Quoted prices for identical or similar assets and liabilities in inactive markets;

• Inputs other than quoted prices that are observable for the assets or liability; and

• Inputs that are derived principally from or corroborated by observable market data by correlation or other means.

If the asset or liability has a specific contractual term, Level 2 input must be observable for substantially the full term of the asset or liability.

Level 3 Inputs to the valuation methodology are unobservable and significant to the fair value measurement.

The asset’s or liability’s fair value measurement level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. Valuation techniques used maximize the use of observable inputs and minimize the use of unobservable inputs.

The methods described above may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. Furthermore, while the Company believes its valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date. These fair value principles are applied to the investments in the Company’s Pension Plan.

The primary investment objective of the Pension Plan is to ensure, over the long-term life of the plan, an adequate pool of assets to support the benefit obligations to participants, retirees and beneficiaries. A secondary objective of the plan is to achieve a level of investment return consistent with the prudent level of portfolio risk that will minimize the financial effect of the Pension Plan on the Company. The investments in the Pension Plan largely consist of low-cost, broad-market index funds to mitigate risks of concentration within market sectors. Each of the funds is diversified across a wide number of securities within its stated asset class.

At December 31, 2012, the Pension Plan investments are in commingled funds which are recorded at fair value as determined by the sponsor of the respective funds based upon closing market quotes of the underlying assets. The following table sets forth by level, within the fair value hierarchy, the Pension Plan’s assets at fair value as of December 31, 2012:

	Level 1		Level 2		Level 3		Total
U.S. equities–large cap	$	–	$	56,388	$	–	$	56,388
U.S. fixed income		–		59,832		–		59,832
International equities		–		42,939		–		42,939
U.S. Equities–Small to Mid Cap		–		17,004		–		17,004
Real Estate Investment Trust		–		7,532		–		7,532
International fixed income		–		5,806		–		5,806
Cash		1,205		–		–		1,205
Other		–		875		–		875
Total assets at fair value	$	1,205	$	190,376	$	–	$	191,581

At December 31, 2011, the Pension Plan investments are in commingled funds which are recorded at fair value as determined by the sponsor of the respective funds based upon closing market quotes of the underlying assets. The following table sets forth by level, within the fair value hierarchy, the Pension Plan’s assets at fair value as of December 31, 2011:

	Level 1		Level 2		Level 3		Total
U.S. equities–large cap	$	–	$	53,021	$	–	$	53,021
U.S. fixed income		–		52,140		–		52,140
International equities		–		30,803		–		30,803
U.S. Equities–Small to Mid Cap		–		9,494		–		9,494
Real Estate Investment Trust		–		6,598		–		6,598
International fixed income		–		5,802		–		5,802
Cash		889		–		–		889
Other		–		76		–		76
Total assets at fair value	$	889	$	157,934	$	–	$	158,823