Fair Value of Financial Instruments

12 Months Ended

Dec. 31, 2011

Fair Value Disclosures [Abstract]

Fair Value of Financial Instruments

Fair Value of Financial Instruments

Fair value is the price that would be received upon sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price). We utilize market data or assumptions that market participants would use in pricing the asset or liability, including assumptions about risk and the risks inherent in the inputs to the valuation technique. These inputs can be readily observable, market corroborated or generally unobservable.

The market approach is applied for recurring fair value measurements and endeavors to utilize the best available information. Accordingly, we utilize valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs. Fair value balances are classified based on the observability of those inputs.

A fair value hierarchy prioritizes the inputs 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 measurement) and the lowest priority to unobservable inputs (Level 3 measurement). Level 2 measurements utilize observable inputs in markets other than active markets.

In estimating the fair value of the financial instruments presented, we used the following methods and assumptions:

Cash and cash equivalents

For cash and cash equivalents, we believe that the carrying value is a reasonable estimate of fair value due to the short-term nature of the instruments.

Restricted cash

Restricted cash is comprised of certificates of deposit that are pledged for various letters of credit secured by the Company; we deem the carrying value to be a reasonable estimate of fair value due to the nature of these instruments.

Marketable securities

Equity and debt securities are classified as available-for-sale securities and are valued using quoted prices in active markets.

Long-term debt

The fair value of long-term debt was estimated based on the current rates available to us for debt of the same remaining maturities and consideration of our default and credit risk.

Interest rate swap agreements and foreign currency purchase agreements

The fair value of the interest rate swap agreements and forward currency purchase agreements were estimated based on market value quotes received from the counter parties to the agreements.

The fair values of our financial instruments as of December 31, 2011 are presented in the following table:

	Fair Value Measurements Using
(in thousands)	Level 1		Level 2			Level 3		Fair Value
Financial Assets:
Cash and cash equivalents	$	259,266	$	—		$	—	$	259,266
Restricted cash	—		22,044			—		22,044
Equity securities	20,884		—			—		20,884
Total Financial Assets	$	280,150	$	22,044		$	—	$	302,194
Financial Liabilities:
Total debt	—		828,990			—		828,990
Total Financial Liabilities	$	—	$	828,990		$	—	$	828,990
Derivatives:
Interest rate swap agreements	$	—	$	(5,078	)	$	—	$	(5,078	)

The fair values of our financial instruments as of December 31, 2010 are presented in the following table:

	Fair Value Measurements Using
(in thousands)	Level 1		Level 2			Level 3		Fair Value
Financial Assets:
Cash and cash equivalents	$	426,212	$	—		$	—	$	426,212
Restricted cash	—		21,095			—		21,095
Debt securities	1,791		—			—		1,791
Equity securities	73,430		—			—		73,430
Total Financial Assets	$	501,433	$	21,095		$	—	$	522,528
Financial Liabilities:
Total debt	—		727,440			—		727,440
Total Financial Liabilities	$	—	$	727,440		$	—	$	727,440
Derivatives:
Interest rate swap agreements	$	—	$	5,156		$	—	$	5,156
Foreign currency forward purchase agreements, net	$	—	$	(971	)	$	—	$	(971	)