Fair Value of Financial Instruments

12 Months Ended

Dec. 31, 2012

Fair Value of Financial Instruments [Abstract]

Fair Value of Financial Instruments

Note 4. Fair Value of Financial Instruments

Fair value of financial and non-financial assets and liabilities is the price that would be received for an asset or paid to transfer a liability (exit price) in an orderly transaction between market participants. The three levels of the fair value hierarchy for assessing the inputs used in fair value measurements are as follows:

· Level 1 – quoted prices in active markets for identical assets and liabilities

· Level 2 – observable inputs other than quoted prices in active markets for identical assets and liabilities

· Level 3 – unobservable inputs in which there is little or no market data available and require the entity to develop its own assumptions

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The highest priority is given to quoted prices in active markets for identical assets and liabilities (level 1) and the lowest priority is given to unobservable inputs (level 3).

The carrying value of cash and cash equivalents, net accounts receivables, payables, and other short-term monetary assets and liabilities was estimated by management to approximate fair value due to the relatively short period of time to maturity for these instruments.

The fair value estimate for our long-term debt is based on the overall weighted average interest rates and maturity compared to rates and terms currently available in the long-term financing markets. The fair value estimate of our interest rate swaps represents the net present value of future cash flows based on projections of the three-month LIBOR rate over the life of each swap.

The fair value and carrying value of our cash equivalents, investments, long-term debt, after deducting current maturities and our interest rate swaps are as follows at December 31, 2012 and 2011:

(Dollars in thousands)		December 31, 2012				December 31, 2011
	Input Level	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Cash equivalents (1)	2	$	-	$	-	$	16,505	$	16,505
Investments	2	$	3,213	$	3,213	$	4,277	$	4,277
Long-term debt	2	$	135,133	$	138,496	$	118,828	$	122,886
Interest rate swaps	2	$	2,432	$	2,432	$	2,469	$	2,469

(1) Cash equivalents were commercial paper and are included in cash and cash equivalents on the Consolidated Balance Sheet as of December 31, 2011.