XML 72 R12.htm IDEA: XBRL DOCUMENT v2.4.0.8
Fair Value Measurements
 6 Months Ended
Jun. 30, 2013
Fair Value Measurements [Abstract]  
Fair Value Measurements
6)       Fair Value Measurements

We follow authoritative guidance regarding fair value measurements for all assets and liabilities measured at fair value.  That guidance establishes a fair value hierarchy that prioritizes the inputs the Company uses to measure fair value based on the significance level of the following inputs:

·  
Level 1 - Quoted prices (unadjusted) for identical assets or liabilities in active markets.
·  
Level 2 - Quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, and model-derived valuations whose inputs or significant value drivers are observable.
·  
Level 3 - Significant inputs to the valuation model are unobservable.

Our assessment of the significance of a particular input to the fair value measurement requires judgment and may affect the valuation of the nonfinancial assets and liabilities and their placement in the fair value hierarchy levels.  As of June 30, 2013, we held $82,000 of investments in marketable securities.  We determine our estimate of the fair value of derivative instruments using a market approach based on several factors, including quoted prices in active markets, and quotes from third parties.
 
The following table summarizes, by major security type, the fair value and any unrealized gain of our available for sale securities.  The unrealized gain is recorded on the condensed consolidated balance sheets as other comprehensive income, a component of shareho
lders’ equity.
 
 
              
   
(In thousands)
 
      
Fair Value Measurements at June 30, 2013 Using
 
   
June 30,
  
Quoted Prices in Active Markets for Identical Assets
  
Significant Other Observable Inputs
  
Significant Unobservable Inputs
 
Description
 
2013
  
(Level 1)
  
(Level 2)
  
(Level 3)
 
              
Commodity risk management assets
 $220  $--  $220  $-- 
Available for sale securities
  82   82   --   -- 
                  
Total assets
 $302  $82  $220  $-- 
                  
Commodity risk management liability
 $36  $--  $36  $-- 
Other accrued liabilities
  734   --   --   734 
                  
Total liabilities
 $770  $--  $36  $734 
                  
 
Our other financial instruments include cash and cash equivalents, accounts receivable, accounts payable, other current liabilities and long-term debt.  The carrying amount of cash and cash equivalents, accounts receivable, accounts payable and other current liabilities approximate fair value because of their immediate or short-term maturities.  The carrying value of our debt approximates its fair market value since interest rates have remained generally unchanged from the issuance of the debt.  The fair value and carrying value of our debt was $19.7 million as of June 30, 2013.