Quarterly report pursuant to Section 13 or 15(d)

Fair Value Of Measurements

v3.4.0.3
Fair Value Of Measurements
 3 Months Ended
Mar. 31, 2016
Fair Value Of Measurements [Abstract]  
Fair Value Of Measurements

NOTE 10.  FAIR VALUE 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 March 31, 2016 and December 31, 2015 were as follows:







 

 

 

 

 

 

 

 

 

 

 

 



 

March 31, 2016



 

Level 1

 

Level 2

 

Level 3

 

Total



 

 

 

 

 

 

 

 

 

 

 

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

  Marketable securities

 

$

 9,910 

 

$

 -

 

$

 -

 

$

 9,910 

  Forward exchange contracts

 

 

 -

 

 

 222 

 

 

 -

 

 

 222 



 

$

 9,910 

 

$

 222 

 

$

 -

 

$

 10,132 



 

 

 

 

 

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

  Forward exchange contracts

 

$

 -

 

$

 1,297 

 

$

 -

 

$

 1,297 



 

$

 -

 

$

 1,297 

 

$

 -

 

$

 1,297 



 

 

 

 

 

 

 

 

 

 

 

 



 

December 31, 2015



 

Level 1

 

Level 2

 

Level 3

 

Total



 

 

 

 

 

 

 

 

 

 

 

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

  Marketable securities

 

$

 9,824 

 

$

 -

 

$

 -

 

$

 9,824 

  Forward exchange contracts

 

 

 -

 

 

 905 

 

 

 -

 

 

 905 



 

$

 9,824 

 

$

 905 

 

$

 -

 

$

 10,729 



 

 

 

 

 

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

  Forward exchange contracts

 

$

 -

 

$

 25 

 

$

 -

 

$

 25 



 

$

 -

 

$

 25 

 

$

 -

 

$

 25 

The carrying value of cash, accounts receivable, accounts payable and accrued liabilities approximate their respective fair values due to the short-term nature and liquidity of these financial instruments.  Marketable securities are recorded at fair value based on quoted market prices.  Derivative financial instruments are recorded at fair value based on current market pricing models.  The Company estimates that, based on current market conditions, the fair value of its long-term debt obligations under its revolving credit facility and senior subordinated notes payable approximate the carrying values at March 31, 2016 and December 31, 2015.



Nonrecurring Fair Value Measurements



There were no assets and liabilities measured at fair value on a nonrecurring basis at March 31, 2016.  Assets and liabilities measured at fair value on a nonrecurring basis at December 31, 2015 were as follows:







 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

December 31, 2015



 

Level 1

 

Level 2

 

Level 3

 

Total

 

Total Losses



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Goodwill

 

$

 -

 

$

 -

 

$

 -

 

$

 -

 

$

 29,507 



The Company has certain assets that are measured at fair value on a nonrecurring basis when impairment indicators are present.  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 assets are adjusted to fair value only when the carrying values exceed the fair values.  Based on the results of the Company’s annual impairment tests completed during the year ended December 31, 2015, the Company determined that goodwill was impaired.  As a result, we recognized impairment charges during the year ended December 31, 2015.