Fair Value Measurements

12 Months Ended

Dec. 31, 2013

8. Fair Value Measurements

The following financial instrument assets (liabilities) are presented below at carrying amount, fair value, and classification within the fair value hierarchy (refer to Notes 7 and 16 for details relating to the borrowing arrangements and derivative instruments). The only financial instruments measured at fair value on a recurring basis are derivative instruments and the acquisition earn-out liability:

	December 31, 2013
	Carrying			Fair Value
(Dollars in thousands)	Amount			Total			Level 1		Level 2			Level 3

Derivative assets	$	1,874		$	1,874		$	—	$	1,874		$	—
Derivative liabilities	(423		)	(423		)	—		(423		)	—
Acquisition earn-out liability	(850		)	(850		)	—		(850		)	—
U.S. credit facility	(26,250		)	(26,250		)	—		(26,250		)	—
China credit facility	(272		)	(272		)	—		(272		)	—
Japanese working capital loan	(1,900		)	(1,900		)	—		(1,900		)	—
Japanese term loan	(5,699		)	(5,699		)	—		(5,699		)	—
Other loans	(165		)	(165		)	—		(165		)	—

	December 31, 2012
	Carrying			Fair Value
(Dollars in thousands)	Amount			Total			Level 1		Level 2			Level 3

Derivative assets	$	1,120		$	1,120		$	—	$	1,120		$	—
Derivative liabilities	(646		)	(646		)	—		(646		)	—
Acquisition earn-out liability	(1,300		)	(1,300		)	—		(1,300		)	—
U.S. credit facility	(44,250		)	(44,250		)	—		(44,250		)	—
Japanese working capital loan	(18,611		)	(18,611		)	—		(18,611		)	—
Japanese term loan	(954		)	(954		)	—		(954		)	—
Other loans	(158		)	(158		)	—		(158		)	—

Cash and cash equivalents, accounts receivable, and accounts payable included in the consolidated balance sheets approximate fair value and are excluded from the tables above. The recorded debt amounts are primarily based of the prime rate, LIBOR, or Fed Funds rate and, accordingly, the carrying value of these obligations equals fair value. Fair value for the acquisition earn-out liability is based upon Level 2 inputs which are periodically re-evaluated for changes in future projections and the discount rate. This liability is recorded in accrued pension and other liabilities within the consolidated balance sheets.

Assets and Liabilities Reported at Fair Value on a Nonrecurring Basis:

As a result of the Company’s restructuring plan, as discussed in Note 2, long-lived assets with a carrying amount of $4.7 million were written down to their fair value of $0.7 million at December 31, 2012. As a result, the Company recorded a charge of $4.0 million which was included in restructuring charges for the year ended December 31, 2012 within the Company’s consolidated statement of comprehensive income. These long-lived assets were valued using Level 3 inputs.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

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