FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS

9 Months Ended

Sep. 30, 2011

FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS

FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS

NOTE B — FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS

Financial Instruments

The following table presents the components of cash and cash equivalents, short-term investments and restricted funds:

	September 30		December 31
	2011		2010
	($ thousands)
Cash and cash equivalents
Cash deposits(1)	$	70,561	$	63,282
Variable rate demand notes(1)(2)	29,681		—
Money market funds(3)	36,857		39,296
	$	137,099	$	102,578
Short-term investments
Certificates of deposit(1)	$	30,992	$	39,288
	$	30,992	$	39,288
Restricted cash equivalents and short-term investments(4)
Cash deposits(1)	$	6,072	$	2,816
Certificates of deposit(1)	41,166		43,758
Money market funds(3)	5,085		5,087
	$	52,323	$	51,661

(1)	Recorded at cost plus accrued interest, which approximates fair value.
(2)	Amounts may be redeemed on a daily basis as presented to the original issuer.
(3)	Recorded at fair value as determined by quoted market prices (see amounts presented in the table of financial assets measured at fair value within this note).
(4)	Amounts restricted for use are subject to change based on the requirements of the Company’s collateralized facilities (see Note D).

The Company’s long-term investment financial instruments are presented in the table of financial assets measured at fair value within this note.

Concentrations of Credit Risk of Financial Instruments

The Company is potentially subject to concentrations of credit risk related to its cash, cash equivalents and short-term investments. The Company reduces credit risk by placing its cash, cash equivalents and short-term investments with major financial institutions and corporate issuers that have high credit ratings and by investing unrestricted short-term investments primarily in FDIC-insured certificates of deposit with varying original maturities of ninety-one days to one year. However, certain cash deposits and certificates of deposit, primarily those pledged as collateral for outstanding letters of credit (see Note D), may exceed federally insured limits. At September 30, 2011 and December 31, 2010, cash and certificates of deposit of $49.0 million and $48.1 million, respectively, exceeded FDIC-insured limits.

Financial Assets Measured at Fair Value

The following table presents the assets that are measured at fair value on a recurring basis, based upon quoted prices for identical assets in active markets (level one of the fair value hierarchy):

	September 30, 2011		December 31, 2010
	Fair Value		Fair Value
	($ thousands)
Money market funds(1)	$	41,942	$	44,383
Equity, bond and money market mutual funds held in trust related to the Voluntary Savings Plan(2)	3,322		5,761
	$	45,264	$	50,144

(1)

Included in cash equivalents and restricted cash equivalents.

(2)

Nonqualified deferred compensation plan investments consist of U.S. and international equity mutual funds, government and corporate bond mutual funds and money market funds which are held in a trust with a third-party brokerage firm. Quoted market prices are used to determine fair values of the investments which are included in other long-term assets, with a corresponding liability reported within other long-term liabilities.