XML 47 R22.htm IDEA: XBRL DOCUMENT v2.4.0.6
Fair Values of Financial Instruments
 9 Months Ended
Sep. 30, 2012
Fair Values of Financial Instruments

13. Fair Values of Financial Instruments

The carrying values of cash and cash equivalents, trade receivables and accounts payable approximate fair value due to the short-term maturity of these items. These fair value estimates are considered Level 1 fair value estimates in the fair value hierarchy of fair value accounting.

The estimated fair value of the Company’s outstanding debt balances (including current portion) as of September 30, 2012 and December 31, 2011 is set forth below (in thousands):

 

     September 30, 2012      December 31, 2011  
     Carrying
Value		      Fair
Value		      Carrying
Value		      Fair
Value		  

Borrowings under credit agreements:

            

Revolving credit facility

    $ —         $ —         $ 110,000       $ 110,000   

Term loan facility

      —           —           92,500         92,500   

4.97% Series A Senior Notes

      300,000         336,548         300,000         315,942   

4.27% Series B Senior Notes

      300,000         310,445         —           —     
  

 

 

     

 

 

     

 

 

     

 

 

  

Total debt

    $ 600,000       $ 646,993       $ 502,500       $ 518,442   
  

 

 

     

 

 

     

 

 

     

 

 

  

The carrying values of the balances outstanding under the term loan facility and revolving credit facility at December 31, 2011 approximated their fair values as both facilities had a floating interest rate. The fair value of the 4.97% Series A Senior Notes at September 30, 2012 and December 31, 2011 and the fair value of the 4.27% Series B Senior Notes at September 30, 2012 were measured based on discounted cash flows associated with the respective notes using current market rates of interest at those respective dates. For the 4.97% Series A Senior Notes, the current market rates used in measuring this fair value were 3.24% at September 30, 2012 and 4.07% at December 31, 2011. For the 4.27% Series B Senior Notes, the current market rate used in measuring this fair value was 3.59% at September 30, 2012. These fair value estimates are based on observable market inputs and are considered Level 2 fair value estimates in the fair value hierarchy of fair value accounting.