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NOTE 9 - FAIR VALUE MEASUREMENTS
 3 Months Ended
Mar. 31, 2012
Fair Value Disclosures [Text Block]
NOTE 9 – FAIR VALUE MEASUREMENTS

Assets and liabilities subject to fair value measurements are required to be disclosed within a fair value hierarchy. The fair value hierarchy ranks the quality and reliability of inputs used to determine fair value. Accordingly, assets and liabilities carried at, or permitted to be carried at, fair value are classified within the fair value hierarchy in one of the following categories based on the lowest level input that is significant to a fair value measurement:

Level 1—Fair value is determined by using unadjusted quoted prices that are available in active markets for identical assets and liabilities.

Level 2—Fair value is determined by using inputs other than Level 1 quoted prices that are directly or indirectly observable. Inputs can include quoted prices for similar assets and liabilities in active markets or quoted prices for identical assets and liabilities in inactive markets. Related inputs can also include those used in valuation or other pricing models such as interest rates and yield curves that can be corroborated by observable market data.

Level 3—Fair value is determined by using inputs that are unobservable and not corroborated by market data. Use of these inputs involves significant and subjective judgment.

The table below summarizes the estimated fair values of certain of our financial liabilities that are subject to fair value measurements, and the classification of these liabilities on our consolidated balance sheets, as follows (in thousands):

   
As of March 31, 2012
 
   
Level 1
   
Level 2
   
Level 3
   
Total
 
Accounts payable, accrued expenses and other:
                       
Interest Rate Swaps
  $ -     $ 3,851     $ -     $ 3,851  

   
As of December 31, 2011
 
   
Level 1
   
Level 2
   
Level 3
   
Total
 
Accounts payable, accrued expenses and other:
                               
Interest Rate Swaps
  $ -     $ 5,064     $ -     $ 5,064  

The estimated fair value of these swaps, which are discussed in Note 6, was determined using Level 2 inputs.  More specifically, the fair value was determined by calculating the value of the difference between the fixed interest rate of the interest rate swaps and the counterparty’s forward LIBOR curve, which would be the input used in the valuations.  The forward LIBOR curve is readily available in the public markets or can be derived from information available in the public markets.

The table below summarizes the estimated fair value and carrying amount of our long-term debt follows (in thousands):

   
As of March 31, 2012
 
   
Level 1
   
Level 2
   
Level 3
   
Total Fair Value
   
Total Carrying Value
 
Senior Secured Term Loan
    -       278,602       -       278,602       279,300  
Senior Notes
    -       199,500       -       199,500       200,000  

   
As of December 31, 2011
 
   
Level 1
   
Level 2
   
Level 3
   
Total
   
Total Carrying Value
 
Senior Secured Term Loan
    -       264,600       -       264,600       280,000  
Senior Notes
    -       180,000       -       180,000       200,000  

The estimated fair value of our long-term debt, which is discussed in Note 1, was determined using Level 2 inputs primarily related to comparable market prices

We consider the carrying amounts of cash and cash equivalents, receivables, other current assets and current liabilities to approximate their fair value because of the relatively short period of time between the origination of these instruments and their expected realization or payment.  Additionally, we consider the carrying amount of our capital lease obligations to approximate their fair value because the weighted average interest rate used to formulate the carrying amounts approximates current market rates.