Fair Value Measurement

6 Months Ended

Jun. 30, 2017

Fair Value Measurement

Note 6. Fair Value Measurement

Fair value is based on the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. U.S. GAAP establishes a fair value hierarchy that is based on the extent and level of judgment used to estimate the fair value of assets and liabilities. In order to increase consistency and comparability in fair value measurements, the FASB has established a fair value hierarchy that prioritizes observable and unobservable inputs used to measure fair value into three broad levels. An asset or liability’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the measurement of its fair value. The three levels of input defined by U.S. GAAP are as follows:

Level 1: Quoted prices (unadjusted) in active markets that are accessible at the measurement date for assets or liabilities.

Level 2: Observable prices that are based on inputs not quoted on active markets, but corroborated by market data.

Level 3: Unobservable inputs are used when little or no market data is available.

The following table presents the Company’s investment assets (excluding equity and cost method investments) and derivatives measured at fair value on a recurring basis (in thousands):

	June 30, 2017
	Level 1		Level 2			Level 3		Total
Certificates of deposit (foreign)	$	—	$	12,644		$	—	$	12,644
Corporate bonds		—		26,112			—		26,112
Corporate obligations		—		4			—		4
Money markets		54		—			—		54
Mutual funds		111		—			—		111
Other investments		—		5,138			—		5,138
Interest rate derivatives — asset derivatives		—		7,906			—		7,906
Interest rate derivatives — liability derivatives		—		(7,991	)		—		(7,991	)
Foreign currency contracts — asset position		—		273			—		273
Foreign currency contracts — liability position		—		(9,292	)		—		(9,292	)
	December 31, 2016
	Level 1		Level 2			Level 3		Total
Certificates of deposit (foreign)	$	—	$	87,372		$	—	$	87,372
Corporate bonds		—		34,133			—		34,133
Short-term bond fund		5,046		—			—		5,046
Corporate obligations		—		3			—		3
Money markets		54		—			—		54
Mutual funds		101		—			—		101
Other investments		—		4,235			—		4,235
Interest rate derivatives — asset derivatives		—		7,860			—		7,860
Interest rate derivatives — liability derivatives		—		(9,006	)		—		(9,006	)
Foreign currency contracts — asset position		—		7,369			—		7,369
Foreign currency contracts — liability position		—		(3,671	)		—		(3,671	)

In addition to the financial instruments included in the above table, certain nonfinancial assets and liabilities are measured at fair value on a nonrecurring basis in accordance with applicable authoritative guidance. This includes items such as nonfinancial assets and liabilities initially measured at fair value in a business combination (but not measured at fair value in subsequent periods) and nonfinancial long-lived asset groups measured at fair value for an impairment assessment. In general, nonfinancial assets including goodwill, other intangible assets and property and equipment are measured at fair value when there is an indication of impairment and are recorded at fair value only when any impairment is recognized. As of June 30, 2017, the Company had not recorded any impairment related to such assets and had no other material nonfinancial assets or liabilities requiring adjustments or write-downs to their current fair value.

The Company believes the principal amount of debt as of June 30, 2017 approximated fair value because of interest-bearing rates that are adjusted periodically, analysis of recent market conditions, prevailing interest rates, and other Company specific factors. The Company has classified the debt as a Level 2 item within the fair value hierarchy.