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Fair Value Measurements
 6 Months Ended
Jun. 30, 2012
Fair Value Measurements  
Fair Value Measurements

(16) Fair Value Measurements

        In accordance with ASC Topic 820—Fair Value Measurements and Disclosures ("ASC 820"), the Company utilizes the market approach to measure fair value for its financial assets and liabilities. The market approach uses prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities.

        ASC 820 utilizes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. The following is a brief description of those three levels:

  • •
    Level 1—Quoted prices in active market for identical assets and liabilities

    •
    Level 2—Other significant observable inputs (including quoted prices in active markets for similar assets or liabilities)

    •
    Level 3—Significant unobservable inputs (including the Company's own assumptions in determining the fair value)

        The following table sets forth the assets and liabilities measured at fair value on a recurring basis, by input level, as of June 30, 2012 and December 31, 2011:

 
   June 30, 2012  
 
   Level 1   Level 2   Level 3   Total  
 
   (in thousands)
  

Location and Description

                          

Cash equivalents

   $ 178,508   $ —   $ —   $ 178,508  

Other current assets (marketable securities)

     31     —     —     31  

Other current assets (other derivative agreements)

     —     6,862     —     6,862  

Other long-term assets (other derivative agreements)

     —     346     —     346  
                   

Total Assets

   $ 178,539   $ 7,208   $ —   $ 185,747  
                   

Other current liabilities (other derivative agreements)

     —     (6,056 )   —     (6,056 )

Other current liabilities (interest rate swap)

     —     (927 )   —     (927 )

Other long-term liabilities (other derivative agreements)

     —     (1,214 )   —     (1,214 )

Other long-term liabilities (interest rate swap)

     —     (1,957 )   —     (1,957 )
                   

Total Liabilities

   $ —   $ (10,154 ) $ —   $ (10,154 )
                   

 
   December 31, 2011  
 
   Level 1   Level 2   Level 3   Total  
 
   (in thousands)
  

Location and Description

                          

Cash equivalents

   $ 187,327   $ —   $ —   $ 187,327  

Other current assets (marketable securities)

     25     —     —     25  

Other current assets (other derivative agreements)

     —     63,051     —     63,051  

Other long-term assets (other derivative agreements)

     —     18,831     —     18,831  
                   

Total Assets

   $ 187,352   $ 81,882   $ —   $ 269,234  
                   

Other current liabilities (interest rate swap)

     —     (905 )   —     (905 )

Other long-term liabilities (interest rate swap)

     —     (1,483 )   —     (1,483 )
                   

Total Liabilities

   $ —   $ (2,388 ) $ —   $ (2,388 )
                   

        As of June 30, 2012 and December 31, 2011, the only financial assets and liabilities that are measured at fair value on a recurring basis are the Company's cash equivalents, available-for-sale marketable securities and derivative instruments. Additionally, the fair value of the Company's Notes is disclosed in Note 13 ("Long-Term Debt"). The Company's commodity derivative contracts are valued using broker quoted market prices of similar commodity contracts using Level 2 inputs. The Partnership has an interest rate swap that is measured at fair value on a recurring basis using Level 2 inputs. The fair value of these interest rate swap instruments are based on discounted cash flow models that incorporate the cash flows of the derivatives, net, as well as the current LIBOR rate and a forward LIBOR curve, along with other observable market inputs. The Company had no transfers of assets or liabilities between any of the above levels during the six months ended June 30, 2012.

        The Company's investments in marketable securities are classified as available-for-sale, and as a result, are reported at fair market value using quoted market prices.