Note 4 - Fair Value Measurements

3 Months Ended

Mar. 31, 2018

Notes to Financial Statements

Fair Value Disclosures [Text Block]

4 . Fair Value Measurements

The Company records its financial assets and liabilities at fair value, which is defined as the price that would be received to sell an asset or paid to transfer a liability, in the principal or most advantageous market for the asset or liability, in an orderly transaction between market participants at the measurement date.

The authoritative guidance establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into

three

broad levels. These levels are: Level 

1

(inputs are quoted prices in active markets for identical assets or liabilities); Level 

2

(inputs are other than quoted prices that are observable, either directly or indirectly through corroboration with observable market data); and Level 

3

(inputs are unobservable, with little or

no

market data that exists, such as internal financial forecasts). The Company is required to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value.

The following table summarizes information regarding the Company’s financial assets and liabilities that are measured at fair value (in thousands):

	Total			Level 1		Level 2			Level 3
As of March 31, 2018
Financial assets:
Deferred compensation plan	$	5,871		$	4,900	$	971		$	-
Derivatives		42			-		42			-
Total assets	$	5,913		$	4,900	$	1,013		$	-
Financial liabilities:
Derivatives	$	(45	)	$	-	$	(45	)	$	-
As of December 31, 2017
Financial assets:
Deferred compensation plan	$	6,244		$	5,251	$	993		$	-
Financial liabilities:
Derivatives	$	(60	)	$	-	$	(60	)	$	-

The deferred compensation plan assets consist of cash and several publicly traded stock and bond mutual funds, valued using quoted market prices in active markets, classified as Level 

1

within the fair value hierarchy, as well as guaranteed investment contracts, valued at principal plus interest credited at contract rates, classified as Level 

2

within the fair value hierarchy.

The Company’s derivatives consist of foreign currency forward contracts, which are accounted for as cash flow hedges, and are valued using various pricing models or discounted cash flow analyses that incorporate observable market parameters, such as interest rate yield curves and currency rates, classified as Level 

2

within the fair value hierarchy. Derivative valuations incorporate credit risk adjustments that are necessary to reflect the probability of default by the counterparty or the Company.

The net carrying amounts of cash and cash equivalents, trade and other receivables, accounts payable and accrued liabilities approximate fair value due to the short-term nature of these instruments.

Effective

January 

1,

2018,

upon the adoption of Accounting Standards Update

No.

 

2016

-

01,

“Financial Instruments—Overall (Subtopic 

825

-

10

): Recognition and Measurement of Financial Assets and Financial Liabilities,” the Company has elected to measure its investment in Lucid Energy, Inc. (“Lucid”), a clean energy company based in Portland, Oregon, at cost minus impairment plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer. The carrying amount of the Company’s investment in Lucid was

$0

as of

March 

31,

2018

and

December 

31,

2017

due to a history of net losses. This carrying amount includes cumulative impairment losses of

$2.0

 million. There were

no

material impairment charges recorded for the Company’s investment in Lucid during the

three

months ended

March 

31,

2018

or

2017.