4. Financial Instruments—Marketable Securities, Forward Currency Exchange Contracts and Interest Rate Swap Contracts
The following tables set forth the Company’s financial assets and liabilities that were accounted for at fair value on a recurring basis as of June 30, 2018 and December 31, 2017 by level within the fair value hierarchy. As required by ASC 820-10, financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement.
The following is summary of items that the Company measures at fair value on a recurring basis:
|
|
|
Fair Value at June 30, 2018 |
|
|
|
|
Level 1 |
|
|
Level 2 |
|
|
Level 3 |
|
|
Total |
|
|
Asset |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Marketable securities |
|
$ |
6,253 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
6,253 |
|
|
Forward currency exchange contracts |
|
|
— |
|
|
|
102 |
|
|
|
— |
|
|
|
102 |
|
|
Total current assets at fair value |
|
$ |
6,253 |
|
|
$ |
102 |
|
|
$ |
— |
|
|
$ |
6,355 |
|
|
Liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest rate swap contracts |
|
$ |
— |
|
|
$ |
4 |
|
|
$ |
— |
|
|
$ |
4 |
|
|
PM contingent liabilities |
|
|
— |
|
|
|
— |
|
|
|
327 |
|
|
|
327 |
|
|
Valla contingent consideration |
|
|
— |
|
|
|
— |
|
|
|
214 |
|
|
|
214 |
|
|
Total recurring liabilities at fair value |
|
$ |
— |
|
|
$ |
4 |
|
|
$ |
541 |
|
|
$ |
545 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fair Value at December 31, 2017 |
|
|
|
|
Level 1 |
|
|
Level 2 |
|
|
Level 3 |
|
|
Total |
|
|
Liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Forward currency exchange contracts |
|
$ |
— |
|
|
$ |
213 |
|
|
$ |
— |
|
|
$ |
213 |
|
|
Residual guarantee |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
Interest rate swap contracts |
|
|
— |
|
|
|
6 |
|
|
|
— |
|
|
|
6 |
|
|
Valla contingent consideration |
|
|
— |
|
|
|
— |
|
|
|
220 |
|
|
|
220 |
|
|
Total liabilities at fair value |
|
$ |
— |
|
|
$ |
219 |
|
|
$ |
220 |
|
|
$ |
439 |
|
|
|
|
Fair Value Measurements Using Significant
Unobservable Inputs (level 3) |
|
|
|
|
PM
Contingent
Consideration |
|
|
Valla
Contingent
Consideration |
|
|
Residual
Guarantee |
|
|
Total |
|
|
Liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at January 1, 2018 |
|
$ |
— |
|
|
$ |
220 |
|
|
$ |
— |
|
|
$ |
220 |
|
|
Effect of change in exchange rates |
|
|
(18 |
) |
|
|
(6 |
) |
|
|
— |
|
|
|
(24 |
) |
|
Change in fair value during the period |
|
|
345 |
|
|
|
— |
|
|
|
— |
|
|
|
345 |
|
|
Balance at June 30, 2018 |
|
$ |
327 |
|
|
$ |
214 |
|
|
$ |
— |
|
|
$ |
541 |
|
Fair Value Measurements
ASC 820-10 classifies the inputs used to measure fair value into the following hierarchy:
|
Level 1 |
|
— |
|
Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities; |
|
|
|
|
|
|
|
Level 2 |
|
— |
|
Quoted prices in markets that are not active, or inputs which are observable, either directly or indirectly, for substantially the full term of the asset or liability; and |
|
|
|
|
|
|
|
Level 3 |
|
— |
|
Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (i.e., supported by little or no market activity). |
Fair value of the forward currency contracts are determined on the last day of each reporting period using observable inputs, which are supplied to the Company by the foreign currency trading operation of its bank and are Level 2 items.
|