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.