Quarterly report pursuant to Section 13 or 15(d)

Fair Value Of Measurements

v2.4.0.8
Fair Value Of Measurements
 9 Months Ended
Sep. 30, 2014
Fair Value Of Measurements [Abstract]  
Fair Value Of Measurements

NOTE 10.  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 September 30, 2014 and December 31, 2013 were as follows:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

September 30, 2014

 

 

Level 1

 

Level 2

 

Level 3

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 Forward exchange contracts

 

$

 -

 

$
2,546 

 

$

 -

 

$
2,546 

 

 

$

 -

 

$
2,546 

 

$

 -

 

$
2,546 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 Forward exchange contracts

 

$

 -

 

$
288 

 

$

 -

 

$
288 

 

 

$

 -

 

$
288 

 

$

 -

 

$
288 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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 price 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, in certain asset groups required an impairment analysis. We determined that the carrying value of these long-lived asset groups as of September 30, 2014, were above their fair values of $809.  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 $2,028 as of September 30, 2014, which related to property, plant and equipment.