v2.3.0.11
Fair Value Measurements
 6 Months Ended
Jun. 30, 2011
Fair Value Measurements  
Fair Value Measurements

Note 7. Fair Value Measurements

We use the market and income approaches to value our financial assets and liabilities, and there were no changes in valuation techniques during the six months ended June 30, 2011. The tables below present information about our financial assets and liabilities that are measured at fair value on a recurring basis and indicate the fair value hierarchy of the valuation techniques we utilized to determine such fair value. The tiers in the fair value hierarchy include: Level 1, defined as observable inputs such as quoted market prices in active markets; Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions.

Our Level 2 assets and liabilities are valued using inputs from third parties and market observable data. We obtain valuation data for the cash surrender value of life insurance and deferred compensation liabilities from third party sources, which determine the net asset values for our accounts using quoted market prices, investment allocations and reportable trades. We value the interest rate swaps using a third party valuation model that performs a discounted cash flow analysis based on the terms of the contracts and market observable inputs such as LIBOR and forward interest rates.

 

The following tables present information about our financial assets and liabilities measured at fair value on a recurring basis as of June 30, 2011 and December 31, 2010 (in thousands):

 

     Balance as
of June 30,
2011		      Fair Value Measurements as of June 30, 2011  
      Level 1      Level 2      Level 3  

Assets:

            

Cash surrender value of life insurance

    $ 13,127       $ —         $ 13,127       $ —     

Interest rate swaps

      874         —           874         —     
                                   

Total Assets

    $ 14,001       $ —         $ 14,001       $ —     
                                   

Liabilities:

            

Deferred compensation liabilities

    $ 13,278       $ —         $ 13,278       $ —     

Interest rate swaps

      857         —           857         —     
                                   

Total Liabilities

    $ 14,135       $ —         $ 14,135       $ —     
                                   
     Balance as
of December 31,
2010		      Fair Value Measurements as of December 31, 2010  
                             
        Level 1      Level 2      Level 3  

Assets:

            

Cash surrender value of life insurance

    $ 10,517       $ —         $ 10,517       $ —     

Interest rate swaps

      4,815         —           4,815         —     
                                   

Total Assets

    $ 15,332       $ —         $ 15,332       $ —     
                                   

Liabilities:

            

Deferred compensation liabilities

    $ 11,245       $ —         $ 11,245       $ —     

Interest rate swaps

      1,416         —           1,416         —     
                                   

Total Liabilities

    $ 12,661       $ —         $ 12,661       $ —     
                                   

The cash surrender value of life insurance and deferred compensation liabilities are included in Other Assets and Other Noncurrent Liabilities, respectively, on our Unaudited Consolidated Condensed Balance Sheets