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Note 9 - Fair Value Measurements
6 Months Ended
Jun. 30, 2018
Notes to Financial Statements  
Fair Value Disclosures [Text Block]
9.
FAIR VALUE MEASUREMENTS
 
A
three
-level hierarchy is established by GAAP for disclosure of fair value measurements, based on the reliability of inputs used in the valuation of an instrument as of the measurement date, as follows:
 
 
Level
1
– Inputs to the valuation methodology are quoted prices for identical instruments in active markets.
 
 
Level
2
– Inputs to the valuation methodology include quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are
not
active and directly or indirectly observable inputs that are significant to the fair value measurement.
 
 
Level
3
– Inputs to the valuation methodology are unobservable and significant to the fair value measurement.
 
Fina
ncial Assets and Liabilities.
The Company has estimated the fair value of its financial instruments as of
June 30, 2018
using available market information or other appropriate valuation methodologies. Considerable judgment is required in interpreting market data to develop the estimates of fair value. Accordingly, the estimates presented in the condensed consolidated financial statements are
not
necessarily indicative of the amounts the Company would realize in a current market exchange.
 
The carrying amounts, fair values and related fair value hierarchies of the Company’s financial assets and liabilities were as follows (in thousands):
 
   
June 30, 2018
 
   
Carrying
   
Fair
   
Fair Value
 
   
Amount
   
Value
   
Hierarchy
 
Assets:
 
 
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
:
 
 
 
 
 
 
 
 
 
 
 
 
Money market investments
  $
16,456
    $
16,456
   
 
Level 1
 
Commercial paper
  $
179,554
    $
179,511
   
 
Level 2
 
Liabilities
:
 
 
 
 
 
 
 
 
 
 
 
 
Long-term debt, including current portion:
 
 
 
 
 
 
 
 
 
 
 
 
Notes
  $
450,000
    $
457,875
   
 
Level 2
 
Senior Credit Facilities
  $
738,750
    $
738,750
     
-
 
 
Money market investments are primarily held in U.S. Treasury securities and registered money market funds and are valued using a market approach based on quoted market prices (Level
1
). Commercial paper is primarily held with high-quality companies and is valued using quoted market prices for investments similar to the commercial paper (Level
2
). Money market investments and commercial paper with original maturities of
90
days or less are included within cash and cash equivalents in the condensed consolidated balance sheets. The fair value of the Notes is estimated based on market prices for similar instruments in active markets (Level
2
). The fair value of the Senior Credit Facilities is equal to the carrying value.
 
The Company’s deferred compensation liability was
$18.2
million and
$20.2
million at
June 30, 2018
and
December 31, 2017,
respectively. The current portion of this liability is included within accounts payable and accrued liabilities and the noncurrent portion is included within other noncurrent liabilities in the condensed consolidated balance sheets. This liability represents the market value of participant balances in a notional investment account that is comprised primarily of mutual funds, whose value is based on observable market prices. However, since the deferred compensation liability is
not
exchanged in an active market, it is classified as Level
2
in the fair value hierarchy.
 
The carrying amounts of accounts receivable, accounts payable and other financial assets and liabilities approximate fair value because of the short-term nature of these instruments.
 
Nonfinancial Assets and Liabilities.
The Company’s nonfinancial assets, such as property, plant and equipment, intangible assets and goodwill, are
not
measured at fair value on a recurring basis. However, such assets are subject to fair value adjustments when there is evidence that impairment
may
exist.
No
material impairments were recorded during the
six
months ended
June 30, 2018
or
2017.