Fair Value of Financial Instruments

3 Months Ended

Mar. 31, 2013

5. Fair Value of Financial Instruments

The fair value of a financial instrument is the amount at which the instrument could be exchanged in a current transaction between willing parties. The following table and accompanying information present the estimated fair values of our financial instruments at March 31, 2013 and December 31, 2012 and classification of such instruments in accordance with FASB ASC 820 (in thousands):

	March 31, 2013					December 31, 2012
	Carrying Amount			Fair Value		Carrying Amount			Fair Value
Financial assets (liabilities):
Restricted-use investment securities	$	1,052		1,052		$	1,218		1,218
Derivative instruments	26			26		32			32
Long-term debt (including current portion)	(1,403,941		)	(1,407,671	)	(1,405,206		)	(1,410,255	)

The following methods and assumptions were used to estimate the fair value of each class of financial instruments:

· The carrying value of cash and cash equivalents, accounts receivable, notes receivable, accounts payable, and accrued liabilities approximates fair value because of the short maturity of these instruments.

· The carrying value of restricted-use investment securities consists of interest bearing bank accounts and approximates fair value because of their short term maturity and is considered a Level 2 fair value measurement.

· The fair value of derivative assets is based on market prices that generally are observable for similar assets at commonly quoted intervals and are considered a Level 2 fair value measurement. Derivative assets that have maturity dates equal to or less than twelve months from the balance sheet date are included in prepaid and other current assets. Derivative assets that have maturity dates greater than twelve months from the balance sheet date are included in deposits and other assets. See Note 4 for additional information on our derivative instruments held and related Company policies.

· The fair value of long-term debt is based upon market prices that generally are observable for similar assets at commonly quoted intervals and is considered a Level 2 fair value measurement.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References

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+ Details