Annual report pursuant to Section 13 and 15(d)

Financial Instruments

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Financial Instruments
 12 Months Ended
Dec. 31, 2012
Financial Instruments [Abstract]  
Financial Instruments [Text Block]

(8)       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 December 31, 2012 and 2011, the fair values of cash and cash equivalents, net receivables, inventories, 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 approximate fair values of our financial instruments at December 31, 2012 and 2011 follow (amounts in thousands):

      December 31,   December 31,
      2012   2011
      Carrying Amount   Fair Value   Carrying Amount   Fair Value
  Current and long-term debt and capital lease obligations $ 957,663   979,594   947,326   942,895
  Other liabilities   25,511   24,766   24,456   23,627

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, 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.

 

Fair Value Measurements

Assets measured at fair value on a recurring basis as of December 31, 2012 and 2011 are as follows (amounts in thousands):

      Fair Value Measurement at Reporting Date Using
  December 31, 2012 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) $ 1,758   -   -
  Total assets at fair value $ 1,758   -   -
               
  December 31, 2011 Assets            
  Deferred compensation plan assets (mutual funds) $ 1,600   -   -
  Total assets at fair value $ 1,600   -   -

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