Annual report pursuant to Section 13 and 15(d)

FAIR VALUE MEASUREMENTS

v2.4.0.8
FAIR VALUE MEASUREMENTS
 12 Months Ended
Dec. 31, 2013
Fair Value Disclosures [Abstract]  
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS
The fair value of an asset or liability is the price that would be received to sell an asset or transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The Company utilizes a fair value hierarchy that maximizes the use of observable inputs and minimizes the use of unobservable inputs when measuring fair value and defines three levels of inputs that may be used to measure fair value. Level 1 inputs are quoted prices in active markets for identical assets or liabilities. Level 2 inputs are observable inputs other than quoted prices included in Level 1 that are observable for the asset or liability either directly or indirectly, including quoted prices for similar assets or liabilities in active markets, quoted prices in markets that are not active, inputs other than quoted prices that are observable for the asset or liability, or inputs derived from observable market data. Level 3 inputs are unobservable inputs that are supported by little or no market activity and are significant to the fair value of the assets or liabilities.
The Company’s financial assets and liabilities as of December 31 that are measured at fair value on a recurring basis were as follows (in thousands):
 
 
Level 1
 
Level 2
 
Level 3
2013
 
 
 
 
 
 
LIABILITIES
 
 
 
 
 
 
Derivative instruments (included in other current liabilities)
 
$
—

 
$
621

 
$
—

 
 
 
 
 
 
 
2012
 
 
 
 
 
 
LIABILITIES
 
 
 
 
 
 
Derivative instruments (included in other current liabilities)
 
$
—

 
$
1,025

 
$
—


The estimated fair value of the Company’s other financial assets and liabilities as of December 31 were as follows (in thousands):
 
 
 
 
Estimated Fair Value
2013
 
Carrying Amount
 
Level 1
 
Level 2
 
Level 3
ASSETS
 
 
 
 
 
 
 
 
Cash and cash equivalents
 
$
31,335

 
$
31,335

 
$
—

 
$
—

Notes receivable from other business ventures (included in other
 receivables and other assets)
 
169

 
169

 
—

 
—

LIABILITIES
 
 
 
 
 
 
 
 
Long-term debt, including current portion
 
282,178

 
—

 
297,399

 
—

 
 
 
 
 
 
 
 
 
2012
 
 
 
 
 
 
 
 
ASSETS
 
 
 
 
 
 
 
 
Cash and cash equivalents
 
$
11,505

 
$
11,505

 
$
—

 
$
—

Notes receivable from other business ventures (included in other
 receivables and other assets)
 
925

 
925

 
—

 
—

LIABILITIES
 
 
 
 
 
 
 
 
Long-term debt, including current portion
 
279,735

 
—

 
283,120

 
—


The carrying values of cash, cash equivalents and the Company’s recently issued notes receivable from other business ventures approximate fair value. The Company’s long-term debt was estimated using discounted cash flow analysis based on estimated current rates. Considerable judgment was required in developing certain of the estimates of fair value and accordingly, the estimates presented herein are not necessarily indicative of the amounts that the Company could realize in a current market exchange.
The Company’s non-financial assets and liabilities that were measured at fair value during the years ended December 31 were as follows (in thousands):
 
 
Level 1
 
Level 2
 
Level 3
2013
 
 
 
 
 
 
ASSETS
 
 
 
 
 
 
Investment in Era do Brazil (2)
 
$
—

 
$
248

 
$
—

 
 
 
 
 
 
 
2012
 
 
 
 
 
 
ASSETS
 
 
 
 
 
 
Investment in Aeróleo (1)
 
$
—

 
$
—

 
$
—

Investment in Era do Brazil (2)
 
—

 
248

 
—

____________________
(1)
On March 1, 2012, the Company wrote-off its equity investment in its Aeróleo joint venture (see Note 5).
(2)
On September 30, 2012, the Company marked its equity investment in its Era do Brazil joint venture to fair value. As the primary beneficiary, the Company has consolidated Era do Brazil in its financial statements effective September 30, 2012 (see Note 5).