XML 26 R15.htm IDEA: XBRL DOCUMENT v3.10.0.1
Fair Value Measurement
6 Months Ended
Jun. 30, 2018
Fair Value Measurement

Note 7. 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. 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 as of June 30, 2018 and December 31, 2017 (in thousands):

 

     June 30, 2018  
     Level 1      Level 2      Level 3      Total  

Certificates of deposit (non-U.S.)

   $ —        $ 46,698      $ —        $ 46,698  

Corporate obligations

     —          14        —          14  

Money markets

     37        —          —          37  

Mutual funds

     82        —          —          82  

Other investments

     —          5,529        —          5,529  

Interest rate derivatives — asset derivatives

     —          21,077        —          21,077  

Interest rate derivatives — liability derivatives

     —          (377      —          (377

Foreign currency contracts — asset position

     —          4,598        —          4,598  

Foreign currency contracts — liability position

     —          (166      —          (166
     December 31, 2017  
     Level 1      Level 2      Level 3      Total  

Certificates of deposit (non-U.S.)

   $ —        $ 12,809      $ —        $ 12,809  

Corporate bonds

     —          11,065        —          11,065  

Corporate obligations

     —          13        —          13  

Money markets

     38        —          —          38  

Mutual funds

     79        —          —          79  

Other investments

     —          5,588        —          5,588  

Interest rate derivatives — asset derivatives

     —          10,156        —          10,156  

Interest rate derivatives — liability derivatives

     —          (4,024      —          (4,024

Foreign currency contracts — asset position

     —          405        —          405  

Foreign currency contracts — liability position

     —          (8,802      —          (8,802

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.

 

During the six months ended June 30, 2018, the Company recorded partial impairment of goodwill of $3.4 million related to our Cloud TV reporting unit, of which $1.2 million is attributable to the noncontrolling interest, respectively. During the fourth quarter of 2017, the Company recorded partial impairments of goodwill and indefinite-lived tradenames of $51.2 million and $3.8 million, respectively, acquired in the ActiveVideo acquisition and included as part of the Cloud TV reporting unit, of which $19.3 million is attributable to the noncontrolling interest. See Note 5 Goodwill and Intangible Assets for further discussion.

The Company believes the principal amount of debt as of June 30, 2018 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.