Quarterly report pursuant to Section 13 or 15(d)

Fair Value of Financial Instruments

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Fair Value of Financial Instruments
 9 Months Ended
Sep. 30, 2011
Fair Value of Financial Instruments [Abstract]  
Fair Value of Financial Instruments
8.   Fair Value of Financial Instruments
 
    Certain of our assets and liabilities are required to be measured at fair value on a recurring basis. For purposes of recording fair value adjustments for certain financial and non-financial assets and liabilities, and determining fair value disclosures, we estimate fair value at a price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants in the principal market for the asset or liability.
 
    The fair value measurement and disclosure requirements of FASB Accounting Standards Codification Topic No. 820, Fair Value Measurement and Disclosures (ASC 820) requires inputs that we categorize using a three-level hierarchy, from highest to lowest level of observable inputs, as follows:
  •   Level 1 — Unadjusted quoted prices for identical assets or liabilities in active markets
 
  •   Level 2 — Direct or indirect observable inputs, including quoted prices or other market data, for similar assets or liabilities in active markets or identical assets or liabilities in less active markets and
 
  •   Level 3 — Unobservable inputs that require significant judgment for which there is little or no market data.
    When multiple input levels are required for a valuation, we categorize the entire fair value measurement according to the lowest level of input that is significant to the measurement even though we may have also utilized significant inputs that are more readily observable.
 
    The amounts reported in our consolidated condensed balance sheets for cash and cash equivalents, accounts receivable, and accounts payable approximate fair value. Fair values and related carrying values of our debt instruments are as follows:
                                 
    September 30, 2011     December 31, 2010  
    Carrying Amount     Fair Value     Carrying Amount     Fair Value  
    (in thousands)  
Long-term Debt
                               
9.125% Notes
  $ 300,000     $ 301,500     $ 300,000     $ 314,300  
2.125% Notes
    125,000       124,549       125,000       119,400  
 
                       
Total
  $ 425,000     $ 426,049     $ 425,000     $ 433,700  
 
                       
    The carrying amount of our interest rate swap agreements represents the estimated fair value, measured using Level 2. At September 30, 2011, the carrying amount of our interest rate swap agreements was $0.2 million, recorded in other long-term liabilities on our consolidated condensed balance sheets. We did not have any outstanding derivative instruments as of December 31, 2010.
 
    Market conditions could cause an instrument to be reclassified from Level 1 to Level 2, or Level 2 to Level 3. There were no transfers between levels of the fair value hierarchy or any changes in the valuation techniques used during the three and nine months ended September 30, 2011.