v2.3.0.15
Fair Value of Financial Instruments (Tables)
9 Months Ended
Sep. 30, 2011
Fair Value of Financial Instruments 
Fair value of assets and liabilities measured on recurring basis

September 30, 2011

 

December 31, 2010

 

 

 

Fair Value Measurements Using

 

Fair Value Measurements Using

 

(in thousands)

 

Total

 

Quoted Prices
in Active
Markets for
Identical Assets
(Level 1)

 

Significant
Other
Observable
Inputs
(Level 2)

 

Significant
Unobservable
Inputs
(Level 3)

 

Total

 

Quoted Prices
in Active
Markets for
Identical Assets
(Level 1)

 

Significant
Other
Observable
Inputs
(Level 2)

 

Significant
Unobservable
Inputs
(Level 3)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

147,520

 

$

147,520

(1)

$

—

 

$

—

 

$

43,794

 

$

20,498

(1)

$

23,296

(2)

$

—

 

Marketable securities, current

 

58,154

 

—

 

58,154

(2)

—

 

141,192

 

—

 

141,192

(2)

—

 

Deferred compensation trusts

 

74,964

 

74,964

(3)

—

 

—

 

73,916

 

73,916

(3)

—

 

—

 

Marketable securities, noncurrent

 

293,969

 

—

 

293, 969

(4)

—

 

279,080

 

—

 

279,080

(4)

—

 

Derivative assets(5)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commodity swap forward contracts

 

3,693

 

—

 

3,693

 

—

 

5,138

 

—

 

5,138

 

—

 

Foreign currency contracts

 

17,173

 

—

 

17,173

 

—

 

731

 

—

 

731

 

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Derivative liabilities(5)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commodity swap forward contracts

 

$

65

 

$

—

 

$

65

 

$

—

 

$

64

 

$

—

 

$

64

 

$

—

 

Foreign currency contracts

 

8,636

 

—

 

8,636

 

—

 

2,527

 

—

 

2,527

 

—

 

 

(1)   Consists of registered money market funds valued at fair value. These investments represent the net asset value of the shares of such funds as of the close of business at the end of the period.

 

(2)   Consists of investments in U.S. agency securities, U.S. Treasury securities, corporate debt securities, commercial paper and other debt securities which are valued at the last reported sale price on the last business day at the end of the period. Securities not traded on the last business day are valued at the last reported bid price.

 

(3)   Consists of registered money market funds and an equity index fund valued at fair value. These investments represent the net asset value of the shares of such funds as of the close of business at the end of the period.

 

(4)   Consists of investments in U.S. agency securities, U.S. Treasury securities, international government and government-related securities, corporate debt securities and other debt securities with maturities ranging from one to five years which are valued at the last reported sale price on the last business day at the end of the period. Securities not traded on the last business day are valued at the last reported bid price.

 

(5)   See Note 8 for the classification of commodity swap forward contracts and foreign currency contracts on the Condensed Consolidated Balance Sheet. Commodity swap forward contracts are estimated using standard pricing models with market-based inputs, which take into account the present value of estimated future cash flows. Foreign currency contracts are estimated by obtaining quotes from brokers.

 

Estimated fair values of financial instruments that are not measured on a recurring basis

 

 

 

September 30, 2011

 

December 31, 2010

 

(in thousands)

 

Carrying Value

 

Fair Value

 

Carrying Value

 

Fair Value

 

 

 

 

 

 

 

 

 

 

 

Assets:

 

 

 

 

 

 

 

 

 

Cash and cash equivalents(1)

 

$

2,238,769

 

$

2,238,769

 

$

2,091,203

 

$

2,091,203

 

Marketable securities, current(2)

 

20,992

 

20,992

 

52,087

 

52,087

 

Notes receivable, including noncurrent portion

 

43,512

 

43,512

 

44,789

 

44,789

 

Liabilities:

 

 

 

 

 

 

 

 

 

3.375% Senior Notes

 

495,614

 

502,175

 

—

 

—

 

1.5% Convertible Senior Notes

 

23,653

 

52,068

 

96,692

 

230,214

 

5.625% Municipal Bonds

 

17,772

 

17,899

 

17,759

 

18,039

 

 

(1)   Consists of bank deposits.

 

(2)   Consists of held-to-maturity time deposits.

 

Fair values were determined as follows:

 

·     The carrying amounts of cash and cash equivalents, marketable securities, current and notes receivable that are current approximate fair value because of the short-term maturity of these instruments. Amortized cost is not materially different from the fair value.

 

·     Notes receivable classified as noncurrent are carried at net realizable value which approximates fair value.

 

·     The fair value of the 3.375 percent Senior Notes, 1.5 percent Convertible Senior Notes and 5.625 percent Municipal Bonds are estimated based on quoted market prices for the same or similar issues or on the current rates offered to the company for debt of the same maturities.