Assets and Liabilities Measured at Fair Value

Fair value is the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. A fair value hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (level 1 measurements) and the lowest priority to unobservable inputs (level 3 measurements). The three levels of the fair value hierarchy are described below:


Level 1:	Quoted prices in active markets for identical assets or liabilities.


Level 2:	Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.


Level 3:	Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.

The asset or liability’s fair value measurement level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. The valuation techniques used need to maximize the use of observable inputs and minimize the use of unobservable inputs. There have been no changes in the methodologies used at March 31, 2017. There were no transfers between levels during 2017 and 2016.



									2017
	Assets and Liabilities at Fair Value								Total
	as of March 31, 2017								Gains
	Total		(Level 1)		(Level 2)		(Level 3)		(Losses)
Non-recurring Fair Value Measurements:
Asset:
Intangible assets, net	$	38,064	$	—	$	—	$	38,064	$	—
Goodwill (1)	$	62,482	$	—	$	—	$	62,482	$	—

(1) The fair value of goodwill is tested at least annually for impairment.



									2016
	Assets and Liabilities at Fair Value								Total
	as of December 31, 2016								Gains
	Total		(Level 1)		(Level 2)		(Level 3)		(Losses)
Non-recurring Fair Value Measurements:
Asset:
Intangible assets, net (1)	$	38,852	$	—	$	—	$	38,852	$	(4,066	)
Goodwill (2)	$	62,482	$	—	$	—	$	62,482	$	(24,302	)

(1) The fair value of intangibles relating to the acquisition of Valent Aerostructures LLC was determined by third parties in connection with the purchase and recorded at those values. The intangibles relating to the Engineering Services reporting unit were deemed impaired during 2016 and a $4,066 impairment charge was recorded in the Consolidated Statements of Comprehensive Income (Loss) for the year ended December 31, 2016.

(2) The Company performed its annual impairment analysis of goodwill related to the Aerostructures reporting units during the fourth quarter of 2016 and determined no adjustments to the carrying value were necessary. The value of the goodwill relating to the Engineering Services reporting unit was deemed fully impaired during 2016 and a $24,302 impairment charge was recorded in the Consolidated Statements of Comprehensive Income (Loss) for the year ended December 31, 2016.