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FAIR VALUE OF FINANCIAL INSTRUMENTS
 9 Months Ended
Sep. 30, 2014
FAIR VALUE OF FINANCIAL INSTRUMENTS  
FAIR VALUE OF FINANCIAL INSTRUMENTS

9. FAIR VALUE OF FINANCIAL INSTRUMENTS

Financial instruments consist primarily of cash and cash equivalents, accounts receivable, accounts payable, accrued expenses and long-term debt. The carrying amounts of cash and cash equivalents, accounts receivable, accounts payable and accrued expenses approximate their fair value because of the nature of such instruments. The fair values of our outstanding notes, as shown in the table below, are based on quoted market values. The fair value of our Term Loan facility is based on present rates for indebtedness with similar amounts, durations and credit risk. Our commodity purchase contracts are fair valued with Level 2 inputs based on quoted market values for similar but not identical financial instruments. When computed for the purposes of impairment testing, the fair values of our goodwill and other acquired intangible assets are determined using Level 3 inputs. For further details concerning the fair value of goodwill and other intangible assets, see Note 6 to the unaudited condensed consolidated financial statements.

The FASB ASC 820-10 establishes a fair value hierarchy that prioritizes observable and unobservable inputs to valuation techniques used to measure fair value. These levels, in order of highest to lowest priority are described below:

Level 1  —   Quoted prices (unadjusted) in active markets for identical assets or liabilities at the measurement date.

Level 2  —
 
Observable prices that are based on inputs not quoted on active markets, but corroborated by market data.

Level 3  —
 
Prices that are unobservable for the asset or liability and are developed based on the best information available under the circumstances, which might include the Company's own data.

The following is a summary of the carrying amounts and estimated fair values of our long-term debt as of September 30, 2014 and December 31, 2013:

 
   September 30, 2014   December 31, 2013  
(In millions)
   Carrying
Amount		   Fair
Value		   Carrying
Amount		   Fair
Value		  

Level 1:

   ​     ​     ​     ​    

Long-term debt:

                          

4.625 Notes

     $ 688.0     $ 663.9     $ 688.0     $ 676.4  

4.875 Notes

     $ 450.0     $ 432.8     $ 450.0     $ 426.9  

Level 2:

   ​     ​     ​     ​    

Long-term debt:

                          

Term Loan (net of debt issuance costs totaling $2.0 million at September 30, 2014 and $2.4 million at December 31, 2013)

     $ 193.1     $ 194.2     $ 194.8     $ 199.0  

Derivative instrument:

                          

Commodity purchase contracts

     $ 1.7     $ 1.7     $ -     $ -