Fair Value Measurements

12 Months Ended

Dec. 31, 2016

17. Fair Value Measurements

The Company measures certain financial assets and liabilities, including interest rate swaps, at fair value on a recurring basis, based on market rates of the Company’s positions and other observable interest rates. The fair value of the interest rate swaps is determined by using quoted market forward rates (level 2 inputs) and reflects the present value of the amount the Company would pay for contracts involving the same notional amount and maturity date.

Accounting guidance on fair value establishes a hierarchy for those instruments measured at fair value which distinguishes between assumptions based on market data (observable inputs) and the Company’s own assumptions (unobservable inputs). The hierarchy consists of three levels:

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Level 1—Quoted market prices in active markets for identical assets or liabilities;

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Level 2—Inputs other than Level 1 inputs that are either directly or indirectly observable; and

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Level 3—Unobservable inputs developed using estimates and assumptions developed by the Company which reflect those that a market participant would use.

Determining which category an asset or liability falls within the hierarchy requires significant judgment. The Company evaluates its hierarchy disclosures each quarter.

	Fair Value Measurements
			Quoted Market Prices in Active Markets for Identical Assets or Liabilities		Significant Other Observable Inputs		Significant Unobservable Inputs
	Total		Level 1		Level 2		Level 3
Assets
Foreign exchange hedge
- as of December 31, 2015	$	91	$	-	$	91	$	-
Liabilities
Interest rate swap
- as of December 31, 2016	$	205	$	-	$	205	$	-
- as of December 31, 2015	$	469	$	-	$	469	$	-

The carrying amount of accounts receivable at December 31, 2016 and 2015, including $500.3 million and $448.6 million, respectively, of receivables sold under the Receivables Securitization Program, approximates fair value because of the short-term nature of this item.

As of December 31, 2016, no assets or liabilities are measured at fair value on a nonrecurring basis.