Fair Value Measurements

3 Months Ended

Mar. 31, 2015

11. FAIR VALUE MEASUREMENTS

The tables below set forth the Company’s recurring fair value measurements (in thousands):

			Fair Value Measurements at March 31, 2015 Using
Description	Total		Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs
			(Level 1)		(Level 2)
Assets:
Fixed income available-for-sale securities
Cash and cash equivalents
Money market funds	$	4,451	$	4,451	$	—
Non U.S. government securities		1,401		—	$	1,401
Commercial paper		8,379		—		8,379
Short-term investments		206,085		—		206,085
Long-term investments		41,158		—		41,158
Total fixed income available-for-sale securities	$	261,474	$	4,451	$	257,023

Foreign currency forward contracts (a)	$	22,808	$	—	$	22,808
Liabilities:
Foreign currency forward contracts (b)	$	12,651	$	—	$	12,651

			Fair Value Measurements at December 31, 2014 Using
Description	Total		Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs
			(Level 1)		(Level 2)
Assets:
Fixed income available-for-sale securities
Cash and cash equivalents
Money market funds	$	1,395	$	1,395	$	—
Commercial paper		7,549		—		7,549
Short-term investments		185,783		—		185,783
Long-term investments		59,197		—		59,197
Total fixed income available-for-sale securities	$	253,924	$	1,395	$	252,529

Foreign currency forward contracts (a)	$	14,342	$	—	$	14,342
Liabilities:
Foreign currency forward contracts (b)	$	8,175	$	—	$	8,175

(a)	Included in short-term derivative assets as “Prepaid expenses and other current assets” in the condensed consolidated balance sheets.

(b)	Included in short-term derivative liabilities as “Other accrued liabilities” in the condensed consolidated balance sheets.

There have been no transfers between Level 1 and Level 2 in the three months ended March 31, 2015 and 2014. There were no investments classified as Level 3 as of March 31, 2015 and December 31, 2014.

In addition, the Company has facilities-related liabilities related to restructuring which were calculated based on the discounted future lease payments less sublease assumptions. This non-recurring fair value measurement is classified as a Level 3 measurement under ASC 820. See Note 6 for further details.

The fair value of the Company’s Term Loan under its Credit Agreement is measured using Level 2 inputs as the borrowings are not actively traded and have a variable interest rate structure based upon market rates currently available to the Company for debt with similar terms and maturities. The Company has elected not to record its Term Loan at fair value, but has measured it at fair value for disclosure purposes. At March 31, 2015 and December 31, 2014, the estimated fair value of the Term Loan was approximately $233.4 million and $234.9 million, respectively, using observable market inputs. See Note 9 for further details.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

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