Quarterly report pursuant to Section 13 or 15(d)

Financial Instruments

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Financial Instruments
9 Months Ended
Sep. 30, 2011
Condensed Notes to Interim Consolidated Financial Statements (Unaudited)  
Fair Value Disclosures Text Block

(5)       Financial Instruments

 

Fair Value of Financial Instruments

The fair value of a financial instrument is the amount at which the instrument could be exchanged in a current transaction between willing parties. At September 30, 2011 and December 31, 2010, the fair values of cash and cash equivalents, net receivables, accounts payable, accrued payroll and payroll related obligations, accrued interest, accrued liabilities, and subscriber deposits approximate their carrying value due to the short-term nature of these financial instruments. The carrying amounts and estimated fair values of our financial instruments at September 30, 2011 and December 31, 2010 follow (amounts in thousands):

 

      September 30,   December 31,
      2011   2010
      Carrying Amount   Fair Value   Carrying Amount   Fair Value
  Current and long-term debt and capital lease obligations $ 942,340   941,804   872,882   908,286
  Other liabilities   86,044   84,518   73,309   72,065

The following methods and assumptions were used to estimate fair values:

 

Current and long-term debt and capital lease obligations: The fair values of our 2021 Notes, 2019 Notes, 2014 Notes, Rural Utilities Service (“RUS”) debt, CoBank mortgage note payable, and capital leases are based upon quoted market prices for the same or similar issues or on the current rates offered to us for the same remaining maturities. The fair value of our Senior Credit Facility is estimated to approximate the carrying value because this instrument is subject to variable interest rates.

 

Other Liabilities: Lease escalation liabilities are valued at the discounted amount of future cash flows using quoted market prices on current rates offered to us. Deferred compensation liabilities are carried at fair value, which is the amount payable as of the balance sheet date. Asset retirement obligations are recorded at their fair value and, over time, the liability is accreted to its present value each period. Our non-employee share-based compensation awards are reported at their fair value at each reporting period.

 

Fair Value Measurements

Assets measured at fair value on a recurring basis as of September 30, 2011 and December 31, 2010 were as follows (amounts in thousands):

 

      Fair Value Measurement at Reporting Date Using
  September 30, 2011 Assets   Quoted Prices in Active Markets for Identical Assets (Level 1)   Significant Other Observable Inputs (Level 2)   Significant Unobservable Inputs (Level 3)
  Deferred compensation plan assets (mutual funds) $ 1,494   -   -
  Total assets at fair value $ 1,494   -   -
               
  December 31, 2010 Assets            
  Deferred compensation plan assets (mutual funds) $ 1,678   -   -
  Total assets at fair value $ 1,678   -   -

The valuation of our mutual funds is determined using quoted market prices in active markets utilizing market observable inputs.