Fair Value Measurement

6 Months Ended

Jun. 30, 2013

Fair Value Measurement [Abstract]

Fair Value Measurement

NOTE I—Fair Value Measurement

The table below summarizes the non-financial assets that were measured and recorded at fair value on a non-recurring basis as of June 30, 2013 and the loss recorded during the six months ended June 30, 2013 on those assets:

($ in thousands)
Description	Carrying Value at June 30, 2013		Quoted Prices in Active Markets for Identical (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Loss for Six- Months Ended June 30, 2013
Intangible assets, other than goodwill and indefinite-lived intangibles	$	289	$	—	$	—	$	289	$	233
Long-lived assets	$	11,675	$	—	$	—	$	11,675	$	2,820

During the second quarter of 2013, CTS initiated the June 2013 restructuring plan which impacted certain locations in the Components and Sensors segment (See Note M). This was considered a triggering event and the company performed an impairment analysis for the impacted intangibles and long-lived assets. The resulting intangible impairment loss related to customer based intangibles in the Components and Sensors segment. The fair value of these assets were measured and recorded using an income approach. Projected future cash flows related to these assets were used under this approach to determine their fair values. CTS recorded an impairment charge of approximately $3,053,000 for the six months ended June 30, 2013. The impairment charge was recorded under “Restructuring and Impairment Charge” on the Company’s Condensed Consolidated Statements of Earnings.

The table below summarizes the financial liability that was measured at fair value on a recurring basis as of June 30, 2013 and the loss recorded during the six months ended June 30, 2013:

($ in thousands)	Carrying Value at June 30, 2013		Quoted Prices in Active Markets for Identical (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Loss for Six- Months Ended June 30, 2013
Interest rate swap – cash flow hedge	$	675	$	—	$	675	$	—	$	155

The fair value of CTS’ interest rate swaps were measured using a market approach which uses current industry information. There is a readily determinable market and these swaps are classified within level 2 of the fair value hierarchy. $334,000 of the fair value of these swaps is classified as a current liability and the remaining $341,000 is classified as a non-current liability on CTS’ Condensed Consolidated Balance Sheets.

CTS’ long-term debt consists of a revolving debt facility. There is a readily determinable market for CTS’ 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 was measured using a market approach which uses current industry information and approximates carrying value.