Annual report pursuant to Section 13 and 15(d)

Fair Value Of Measurements

v2.4.1.9
Fair Value Of Measurements
 12 Months Ended
Dec. 31, 2014
Fair Value Of Measurements [Abstract]  
Fair Value Of Measurements

NOTE 12.  FAIR VALUE OF MEASUREMENTS

 

We measure certain financial assets and liabilities at fair value on a recurring basis.  Fair value is defined as an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants, under a three-tier fair value hierarchy which prioritizes the inputs used in measuring fair value as follows:

 

Level 1- inputs to the valuation methodology are quoted market prices for identical assets or liabilities in active markets.

 

Level 2- inputs to the valuation methodology include quoted prices in markets that are not active or model inputs that are

              observable either directly or indirectly for substantially the full term of the asset or liability.

 

Level 3- inputs to the valuation methodology are based on prices or valuation techniques that are unobservable.

 

 

Assets and liabilities measured at fair value on a recurring basis at December 31, 2014 and December 31, 2013 were as follows:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2014

 

 

Level 1

 

Level 2

 

Level 3

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 Marketable securities

 

$
9,902 

 

$

 -

 

$

 -

 

$
9,902 

 Forward exchange contracts

 

 

 -

 

 
3,512 

 

 

 -

 

 
3,512 

 

 

$
9,902 

 

$
3,512 

 

$

 -

 

$
13,414 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 Forward exchange contracts

 

$

 -

 

$
90 

 

$

 -

 

$
90 

 

 

$

 -

 

$
90 

 

$

 -

 

$
90 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2013

 

 

Level 1

 

Level 2

 

Level 3

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 Forward exchange contracts

 

$

 -

 

$
758 

 

$

 -

 

$
758 

 

 

$

 -

 

$
758 

 

$

 -

 

$
758 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 Forward exchange contracts

 

$

 -

 

$
1,722 

 

$

 -

 

$
1,722 

 

 

$

 -

 

$
1,722 

 

$

 -

 

$
1,722 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-recurring Fair Value Measurements

 

The Company has certain assets that are measured at fair value on a non-recurring basis when impairment indicators are present.  The assets are adjusted to fair value only when the carrying values exceed the fair values.  The categorization of the framework used to estimate the fair value of the assets is considered a Level 3, due to the subjective nature of the unobservable inputs used to determine the fair value.  The Company concluded based on its restructuring plan, that long-lived assets, which consisted primarily of property, plant and equipment, required an impairment analysis.  We determined that the carrying value of our Asian manufacturing and Asian distribution operations as well as our sales, marketing, and distribution office in Japan were above their fair values of $781.  The Company utilized quoted values of similar assets and other estimated unobservable inputs to determine fair value of the property, plant and equipment.  As a result, we recognized impairment charges of $2,056 as of December 31, 2014, which related to property, plant and equipment.