Fair Value Measurements

12 Months Ended

Dec. 31, 2013

NOTE 16. FAIR VALUE MEASUREMENTS

The following table sets forth our assets and liabilities that were measured at fair value on a recurring basis at December 31, 2013 and at December 31, 2012 by level within the fair value hierarchy (in thousands):


	Quoted Prices		Significant
	in Active		Other		Significant
	Markets for		Observable		Unobservable
	Identical Assets		Inputs		Inputs		Balance at
As of December 31, 2013	(Level 1)		(Level 2)		(Level 3)		December 31, 2013

Assets
Money market funds(1)	$	153,109	$	-	$	-	$	153,109
Equity mutual funds(2)		2,847		-		-		2,847
Foreign currency exchange contracts(3)		-		4,044		-		4,044
Liabilities
Foreign currency exchange contracts(3)		-		3,096		-		3,096
Deferred compensation(4)		2,847		-		-		2,847
Interest rate swaps(5)		-		1,821		-		1,821


	Quoted Prices		Significant
	in Active		Other		Significant
	Markets for		Observable		Unobservable
	Identical Assets		Inputs		Inputs		Balance at
As of December 31, 2012	(Level 1)		(Level 2)		(Level 3)		December 31, 2012

Assets
Money market funds(1)	$	127,576	$	-	$	-	$	127,576
Equity mutual funds(2)		2,320		-		-		2,320
Foreign currency exchange contracts(3)		-		2,128		-		2,128
Liabilities
Foreign currency exchange contracts(3)		-		2,193		-		2,193
Deferred compensation(4)		2,320		-		-		2,320
Interest rate swaps(5)		-		2,682		-		2,682

__________

(1)

Money market funds are included within cash and cash equivalents. The remaining balance of cash and cash equivalents as of December 31, 2013 and December 31, 2012 consisted of demand deposits.

(2)

Equity mutual funds relate to a deferred compensation plan that was assumed as part of a previous business combination. This amount is included within other long-term assets, net. See number (4) below for a discussion of the related deferred compensation liability.

(3)

Foreign currency exchange contracts are included within other current assets or accrued liabilities depending on the gain (loss) position and anticipated settlement date.

(4)

A deferred compensation plan assumed as part of a business combination is included within other long-term liabilities. The fair value of our deferred compensation plan is indexed to the performance of the underlying equity mutual funds discussed in number (2) above.

(5)

Interest rate swaps are included within accrued liabilities.

We did not have any transfers between Level 1 and Level 2 or transfers in or out of Level 3 of the fair value hierarchy during the years ended December 31, 2013 and 2012.

The estimated fair value of certain financial instruments, including cash and cash equivalents, accounts receivable and accounts payable, approximate carrying value due to their short maturity.

- 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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