Financial Instruments

3 Months Ended

Mar. 31, 2013

Fair Value Disclosures [Abstract]

Financial Instruments

FINANCIAL INSTRUMENTS

The following tables illustrate the classification of the Company's financial instruments within the fair value hierarchy as of March 31, 2013. The three levels of the fair value hierarchy are:

Level 1 - Unadjusted quoted prices in active markets for identical assets or liabilities;

Level 2 - Inputs other than quoted prices that are observable for the asset or liability either directly or indirectly; and

Level 3 - Inputs that are not based on observable market data.

The following table sets forth the Company's assets measured at fair value on a recurring basis by level within the fair value hierarchy at March 31, 2013:

	Financial assets measured at fair value as at
	March 31, 2013
	Level 1		Level 2		Level 3		Total
Available for sale investments	$	9,416	$	—	$	—	$	9,416
	$	9,416	$	—	$	—	$	9,416

Available for sale investments in Level 1 are based on the quoted market price for the equity investment. It is possible that some of these investments could be sold in large blocks at a future date via a negotiated agreement and such agreements may include a discount from the quoted price.

The following table sets forth the Company's liabilities measured at fair value on a recurring basis by level within the fair value hierarchy at March 31, 2013:

	Financial liabilities measured at fair value as at
	March 31, 2013
	Level 1		Level 2		Level 3		Total
5% Convertible Debentures	—		—		91,628		91,628
	$	—	$	—	$	91,628	$	91,628

The 5% convertible senior unsecured debentures ("5% Convertible Debentures") are recorded at fair value. The debt component of the 5% Convertible Debentures is valued based on discounted cash flows and the equity component is valued using a Black-Scholes model. Inputs used to determine these values were: discount rate of 8.64%, risk free interest rate of 0.77%, volatility of 40% and a remaining life of 4.17 years. The 5% Convertible Debentures $91.6 million fair value includes $1.3 million of accrued interest at March 31, 2013. See Note 10. Debt for a further discussion of the 5% Convertible Debentures.

As at March 31, 2013, an unrealized gain of $7.6 million was recorded in the Statement of Operations relating to the change in fair value of the 5% Convertible Debentures compared to loss of $0.9 million as at March 31, 2012 related to the 4% convertible senior unsecured debentures.

The following table sets forth the Company's assets measured at fair value on a recurring basis by level within the fair value hierarchy at December 31, 2012:

	Financial assets measured at fair value as at
	December 31, 2012
	Level 1		Level 2		Level 3		Total
Available for sale investments	$	15,034	$	—	$	—	$	15,034
	$	15,034	$	—	$	—	$	15,034

The following table sets forth the Company's liabilities measured at fair value on a recurring basis by level within the fair value hierarchy at December 31, 2012:

	Financial liabilities measured at fair value as at
	December 31, 2012
	Level 1		Level 2		Level 3		Total
5% Convertible Debentures	$	—	$	—	$	99,604	$	99,604
	$	—	$	—	$	99,604	$	99,604