Quarterly report pursuant to Section 13 or 15(d)

Fair Value Disclosures

v2.4.0.6
Fair Value Disclosures
 6 Months Ended
Jun. 30, 2012
Fair Value Disclosures [Abstract]  
FAIR VALUE DISCLOSURES

NOTE 6 — FAIR VALUE DISCLOSURES

We account for the non-recurring fair value measurements of our non-financial assets and liabilities in accordance with ASC 820-10, Fair Value Measurement and Disclosure. This guidance defines fair value, establishes a framework for measuring fair value and addresses required disclosures about fair value measurements. This standard establishes a three-level hierarchy for fair value measurements based upon the significant inputs used to determine fair value. Observable inputs are those which are obtained from market participants external to the company while unobservable inputs are generally developed internally, utilizing management’s estimates, assumptions and specific knowledge of the assets/liabilities and related markets. The three levels are defined as follows:

 

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Level 1 — Valuation is based on quoted prices in active markets for identical assets and liabilities.

 

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Level 2 — Valuation is determined from quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar instruments in markets that are not active, or by model-based techniques in which all significant inputs are observable in the market.

 

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Level 3 — Valuation is derived from model-based techniques in which at least one significant input is unobservable and based on the company’s own estimates about the assumptions that market participants would use to value the asset or liability.

If the only observable inputs are from inactive markets or for transactions which the company evaluates as “distressed”, the use of Level 1 inputs should be modified by the company to properly address these factors, or the reliance of such inputs may be limited, with a greater weight attributed to Level 3 inputs. Refer to Notes 1 and 2 for additional information regarding the valuation of our non-financial assets.

 

A summary of our long-lived real-estate assets re-measured at fair value as of and during the three and six months ended June 30, 2012 and 2011 is as follows (in thousands):

 

                                         
    Hierarchy     Three Months Ended
June 30, 		    Six Months Ended
June 30, 		 
       2012     2011 (2)     2012     2011 (2)  

Description:

                                        

Adjusted Basis of Long-Lived Real Estate Assets (1)

     Level 3     $ 9,399     $ 12,556     $ 11,688     $ 13,949  

Impairments

             863       590       1,156       1,254  
           

 

 

    

 

 

    

 

 

    

 

 

  

Initial Basis of Long-Lived Real Estate Assets

           $ 10,262     $ 13,146     $ 12,844     $ 15,203  
           

 

 

    

 

 

    

 

 

    

 

 

  

 

(1) The fair values in the table above represent only those real estate assets whose carrying values were adjusted in the respective period.
(2) The carrying values for these real-estate assets may have subsequently increased or decreased from the fair value reported due to activities that have occurred since the measurement date.

Financial Instruments. The fair value of our fixed-rate debt is derived from quoted market prices by independent dealers and is as follows (in thousands):

 

                                         
   
Hierarchy		     June 30, 2012     December 31, 2011  
      Aggregate
Principal		     Estimated
Fair Value		     Aggregate
Principal		     Estimated
Fair Value		  

6.25% senior notes

     Level 2       N/A       N/A     $ 285,000     $ 278,588  

7.731% senior subordinated notes

     Level 2     $ 99,825     $ 103,069     $ 125,875     $ 110,770  

7.15% senior notes

     Level 2     $ 200,000     $ 209,000     $ 200,000     $ 190,000  

7.00% senior notes

     Level 2     $ 300,000     $ 309,750       N/A       N/A  

Due to the short-term nature of other financial assets and liabilities, we consider the carrying amounts of our other short-term financial instruments to approximate fair value.