Fair Value Measurements

12 Months Ended

Dec. 31, 2017

The table below summarizes the financial assets and liabilities that were measured at fair value on a recurring basis as of December 31, 2017 and the (gain) loss recorded during the year ended December 31, 2017:



	Asset (Liability) Carrying Value at December 31, 2017			Quoted Prices in Active Markets for Identical (Level 1)		Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)		(Gain) loss for Year Ended December 31, 2017
Interest rate swap — cash flow hedge	$	971		$	—	$	971		$	—	$	37
Foreign currency hedges	$	(742	)	$	—	$	(742	)	$	—	$	(38	)

The table below summarizes the financial liability that was measured at fair value on a recurring basis as of December 31, 2016 and the (gain) loss recorded during the year ended December 31, 2016:



	Asset (Liability) Carrying Value at December 31, 2016			Quoted Prices in Active Markets for Identical (Level 1)		Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)		(Gain) loss for Year Ended December 31, 2016
Interest rate swap — cash flow hedge	$	753		$	—	$	753		$	—	$	(928	)
Foreign currency hedges	$	(601	)			$	(601	)			$	18

The fair value of our interest rate swaps and foreign currency hedges were measured using standard valuation models using market-based observable inputs over the contractual terms, including forward yield curves, among others. There is a readily determinable market for these derivative instruments, but the market is not active and therefore they are classified within level 2 of the fair value hierarchy.

The table below provides a reconciliation of the recurring financial assets and liabilities related to interest rate swaps and foreign currency hedges:



	Interest Rate Swaps			Foreign Currency Hedges
Balance at January 1, 2016	$	(768	)	$	—
Settled in cash	—			54
Total gains (losses) for the period:
Included in earnings	928			(18		)
Included in other comprehensive earnings (loss)	593			(637		)
Balance at January 1, 2017	$	753		$	(601	)
Settled in cash	—			(132		)
Total gains (losses) for the period:
Included in earnings	—			38
Included in other comprehensive earnings (loss)	218			(47		)
Balance at December 31, 2017	$	971		$	(742	)

Our long-term debt consists of a revolving debt facility which is recorded at its carrying value. There is a readily determinable market for our revolving credit debt and it is classified within Level 2 of the fair value hierarchy as the market is not deemed to be active. The fair value of long-term debt approximates carrying value and was determined by valuing a similar hypothetical coupon bond and attributing that value to our credit facility.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

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