XML 46 R13.htm IDEA: XBRL DOCUMENT v2.4.0.8
FAIR VALUE MEASUREMENTS
6 Months Ended
Jun. 30, 2014
Fair Value Disclosures [Abstract]  
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS
 
The carrying value of our cash and cash equivalents, accounts receivable, notes receivable, accounts payable and line of credit approximate fair value because of their short-term nature.

Derivative Instruments and Hedging Activities
 
The values of our derivative instruments are derived from pricing models using inputs based upon market information, including contractual terms, market prices and yield curves.  The significant inputs to the valuation pricing models are observable in the market, and as such the derivatives are classified as Level 2 in the fair value hierarchy.
 
Restructuring Charges
 
Accrued restructuring costs were valued using a discounted cash flow model.  Significant assumptions used in determining the amount of the estimated liability for closing a facility are the estimated liability for future lease payments on vacant facilities and the discount rate utilized to determine the present value of the future expected cash flows. If the assumptions regarding early termination and the timing and amounts of sublease payments prove to be inaccurate, we may be required to record additional losses, or conversely, a future gain, in the consolidated statements of operations and comprehensive income (loss).

In the future, if we sublease for periods that differ from our assumption or if an actual buy-out of a lease differs from our estimate, we may be required to record a gain or loss.  Future cash flows also include estimated property taxes through the remainder of the lease term, which are valued based upon historical tax payments.  Given that the restructuring charges were valued using our internal estimates using a discounted cash flow model, we have classified the accrued restructuring costs as Level 3 in the fair value hierarchy.

Fair Value Hierarchy
 
The following tables set forth our assets and liabilities measured at fair value on a recurring basis and a non-recurring basis by level within the fair value hierarchy.  Assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement.
 
 
Liabilities Measured at Fair Value
on a Recurring Basis as of June 30, 2014
 
Level 1
 
Level 2
 
Level 3
 
Total
Assets:
 

 
 

 
 

 
 

Foreign exchange contracts
$

 
$
34

 
$

 
$
34

Total fair value of assets measured on a recurring basis
$

 
$
34

 
$

 
$
34

 
 
 
 
 
 
 
 
Liabilities:
 

 
 

 
 

 
 

Foreign exchange contracts
$

 
$
381

 
$

 
$
381

Total fair value of liabilities measured on a recurring basis
$

 
$
381

 
$

 
$
381

 
Liabilities Measured at Fair Value
on a Recurring Basis as of December 31, 2013
 
Level 1
 
Level 2
 
Level 3
 
Total
Liabilities:
 

 
 

 
 

 
 

Foreign exchange contracts
$

 
$
2,160

 
$

 
$
2,160

Total fair value of liabilities measured on a recurring basis
$

 
$
2,160

 
$

 
$
2,160

 
 
Liabilities Measured at Fair Value on a
Non-Recurring Basis as of June 30, 2014
 
Level 1
 
Level 2
 
Level 3
 
Total
Liabilities:
 

 
 

 
 

 
 

Accrued restructuring costs
$

 
$

 
$
1,724

 
$
1,724

Total fair value of liabilities measured on a non-recurring basis
$

 
$

 
$
1,724

 
$
1,724

 
Assets and Liabilities Measured at Fair Value on a
Non-Recurring Basis as of December 31, 2013
 
Level 1
 
Level 2
 
Level 3
 
Total
Assets:
 

 
 

 
 

 
 

Property, plant and equipment, net
$

 
$

 
531

 
531

Total fair value of assets measured on a non-recurring basis
$

 
$

 
$
531

 
$
531

 
 
 
 
 
 
 
 
Liabilities:
 

 
 

 
 

 
 

Accrued restructuring costs
$

 
$

 
$
16

 
$
16

Total fair value of liabilities measured on a non-recurring basis
$

 
$

 
$
16

 
$
16