Annual report pursuant to Section 13 and 15(d)

FAIR VALUE MEASUREMENT

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FAIR VALUE MEASUREMENT
 12 Months Ended
Dec. 31, 2011
FAIR VALUE MEASUREMENT  
FAIR VALUE MEASUREMENT

7.     FAIR VALUE MEASUREMENT

The Company's financial instruments consist of cash and cash equivalents, short-term investments, trade and notes receivables, accounts payable and other short-term liabilities. The carrying amounts of these financial instruments approximate their fair values. The Company has financial instruments related to its defined pension plan and deferred compensation plan detailed in note 13.

The following table presents our nonqualified deferred compensation plan assets using the fair value hierarchy as of December 31, 2011. The fair value hierarchy has three levels based on the reliability of the inputs used to determine fair value. Level 1 refers to fair values determined based on quoted prices in active markets for identical assets. Level 2 refers to fair values estimated using significant other observable inputs, and Level 3 includes fair values estimated using significant non-observable inputs.

 
   Total
   Level 1
   Level 2
   Level 3
  
   

Cash and cash equivalents

   $ 37   $ 37   $ —   $ —  

Available for sale securities

     287     287     —     —  
       

Total

   $ 324   $ 324   $ —   $ —  
   

The following table presents our nonqualified deferred compensation plan assets using the fair value hierarchy at December 31, 2010.

 
   Total
   Level 1
   Level 2
   Level 3
  
   

Cash and cash equivalents

   $ 540   $ 540   $ —   $ —  

Available for sale securities

     181     181     —     —  
       

Total

   $ 721   $ 721   $ —   $ —  
   

Cash and cash equivalents, which are used to pay benefits and deferred compensation plan administrative expenses, are held in Money Market Funds.

The marketable securities classified as available-for-sale and the securities held in the deferred compensation plan are carried at fair value, based on quoted market prices, in the accompanying consolidated balance sheets.

At December 31, 2011 the Deferred Compensation Plan had 41 life insurance policies with a net face value of $38.5 million. The cash surrender value of these life insurance policies had a net realizable value of $9.8 million and $9.4 million at December 31, 2011 and 2010, respectively. The total deferred compensation plan assets, recorded in other assets on the Company's consolidated statements of financial position, were $10.1 million at December 31, 2011 and 2010.