Note 4. Fair Value

The Company’s assets and liabilities measured at fair value on a recurring basis subject to the requirements of ASC 820 consist of the following as of December 31, 2015 (in thousands):


			Fair Value Measurements at December 31, 2015 Using:
	Balance at		Quoted Prices in Active Markets For Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
	December 31, 2015		Level (1)		Level (2)		Level (3)
Assets:
Foreign currency forward and option contracts included in “Other current assets” ⁽¹⁾	$	10,962	$	—	$	10,962	$	—
Equity investments held in a rabbi trust for the Deferred Compensation Plan ⁽²⁾		6,229		6,229		—		—
Debt investments held in a rabbi trust for the Deferred Compensation Plan ⁽²⁾		1,622		1,622		—		—
Guaranteed investment certificates ⁽³⁾		86		—		86		—

	$	18,899	$	7,851	$	11,048	$	—

Liabilities:
Long-term debt ⁽⁴⁾	$	70,000	$	—	$	70,000	$	—
Foreign currency forward and option contracts included in “Other accrued expenses and current liabilities” ⁽¹⁾		835		—		835		—
Contingent consideration included in “Other long-term liabilities” ⁽⁵⁾		6,280		—		—		6,280

	$	77,115	$	—	$	70,835	$	6,280

The Company’s assets and liabilities measured at fair value on a recurring basis subject to the requirements of ASC 820 consist of the following as of December 31, 2014 (in thousands):


			Fair Value Measurements at December 31, 2014 Using:
	Balance at		Quoted Prices in Active Markets For Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
	December 31, 2014		Level (1)		Level (2)		Level (3)
Assets:
Money market funds and open-end mutual funds included in “Cash and cash equivalents” ⁽⁵⁾	$	100,915	$	100,915	$	—	$	—
Money market funds and open-end mutual funds included in “Deferred charges and other assets” ⁽⁵⁾		10		10		—		—
Foreign currency forward and option contracts included in “Other current assets” ⁽¹⁾		1,489		—		1,489		—
Foreign currency forward contracts included in “Deferred charges and other assets” ⁽¹⁾		4,060		—		4,060		—
Equity investments held in a rabbi trust for the Deferred Compensation Plan ⁽²⁾		5,589		5,589		—		—
Debt investments held in a rabbi trust for the Deferred Compensation Plan ⁽²⁾		1,363		1,363		—		—
Guaranteed investment certificates ⁽³⁾		79		—		79		—

	$	113,505	$	107,877	$	5,628	$	—

Liabilities:
Long-term debt ⁽⁴⁾	$	75,000	$	—	$	75,000	$	—
Foreign currency forward and option contracts included in “Other accrued expenses and current liabilities” ⁽¹⁾		1,261		—		1,261		—

	$	76,261	$	—	$	76,261	$	—

⁽¹⁾	In the accompanying Consolidated Balance Sheets. See Note 10, Financial Derivatives.

⁽²⁾	Included in “Other current assets” in the accompanying Consolidated Balance Sheets. See Note 11, Investments Held in Rabbi Trust.

⁽³⁾	Included in “Deferred charges and other assets” in the accompanying Consolidated Balance Sheets.

⁽⁴⁾	The carrying value of long-term debt approximates its estimated fair value as it re-prices at varying interest rates. See Note 18, Borrowings.

⁽⁵⁾	In the accompanying Consolidated Balance Sheets.

A rollforward of the activity in the Company’s fair value of the contingent consideration is as follows (in thousands):


	Fair Value
Balance at January 1, 2015	$	—
Acquisition ⁽¹⁾		6,000
Payments		—
Imputed interest/adjustments		408
Effect of foreign currency		(128	)

Balance at December 31, 2015	$	6,280

⁽¹⁾	Related to the Qelp acquisition on July 2, 2015. See Note 2, Acquisitions.

The Company did not record any fair value adjustments to the contingent consideration as the key assumptions used to calculate the fair value at the acquisition date remained consistent at December 31, 2015. Should the assumptions regarding probability of achievement of certain revenue and EBITDA targets change in future periods, the change in fair value of the contingent consideration will be recognized in the accompanying Consolidated Statements of Operations. The Company accretes interest expense each period using the effective interest method until the contingent consideration reaches the estimated future value of $9.1 million. Interest expense related to the contingent consideration is included in “Interest (expense)” in the accompanying Consolidated Statements of Operations.

Certain assets, under certain conditions, are measured at fair value on a nonrecurring basis utilizing Level 3 inputs, as described in Note 1, Overview and Summary of Significant Accounting Policies, like those associated with acquired businesses, including goodwill, other intangible assets and other long-lived assets. For these assets, measurement at fair value in periods subsequent to their initial recognition would be applicable if these assets were determined to be impaired. The adjusted carrying values for assets measured at fair value on a nonrecurring basis (no liabilities) subject to the requirements of ASC 820 were not material at December 31, 2015 and 2014.