FAIR VALUE OF FINANCIAL INSTRUMENTS
 12 Months Ended
Dec. 31, 2014
Fair Value Disclosures [Abstract]  
FAIR VALUE OF FINANCIAL INSTRUMENTS
FAIR VALUE OF FINANCIAL INSTRUMENTS

We use fair value measurements for the initial recording of certain assets and liabilities, periodic remeasurement of certain assets and liabilities, and disclosures.  Fair value is generally defined as the exit price at which an asset or liability could be exchanged in a current transaction between willing, unrelated parties, other than in a forced or liquidation sale.  
 
The fair value framework requires the categorization of assets and liabilities into three levels based upon the assumptions used to value the assets or liabilities.  Level 1 provides the most reliable measure of fair value, whereas Level 3 generally requires significant management judgment.  The three levels are defined as follows:
▪
Level 1: Unadjusted quoted prices in active markets for identical assets or liabilities at the measurement date.
▪
Level 2: Observable inputs other than those included in Level 1.  For example, quoted prices for similar assets or liabilities in active markets or quoted prices for identical assets or liabilities in inactive markets.
▪
Level 3: Unobservable inputs reflecting management’s own assumption about the inputs used in pricing the asset or liability at the measurement date.

The following table summarizes the balances of assets and liabilities measured at fair value on a recurring basis:
(Dollars in thousands)
Total
 
Level 1
 
Level 2
 
Level 3
December 31, 2014
 
 
 
 
 
 
 
Assets:
 
 
 
 
 
 
 
Investments related to deferred compensation plans
$
3,670

 
$
3,670

 
$
—

 
$
—

Liabilities:
 

 
 

 
 

 
 

Commodity swaps
$
6,268

 
$
—

 
$
6,268

 
$
—

December 31, 2013
 

 
 

 
 

 
 

Assets:
 

 
 

 
 

 
 

Commodity swaps
$
15,505

 
$
—

 
$
15,505

 
$
—

Investments related to deferred compensation plans
3,495

 
3,495

 
—

 
—

Liabilities:
 

 


 
 

 
 

Commodity swaps
$
4,959

 
$
—

 
$
4,959

 
$
—

Fair values are based on observable market data.