Fair Value Measurements

3 Months Ended

Mar. 31, 2012

Fair Value Measurements [Abstract]

FAIR VALUE MEASUREMENTS

12. FAIR VALUE MEASUREMENTS

FASB ASC 820, "Fair Value Measurements and Disclosures," defines fair value, establishes a framework for measuring fair value in accordance with accounting principles generally accepted in the United States, and expands disclosures about fair value measurements.   The Company applies the provisions of ASC 820 to all its assets and liabilities that are being measured and reported on a fair value basis.

ASC 820 discusses valuation techniques, such as the market approach (comparable market prices), the income approach (present value of future income or cash flow) and the cost approach (cost to replace the service capacity of an asset or replacement cost).  ASC 820 enables readers of financial statements to assess the inputs used to develop those measurements by establishing a hierarchy, which prioritizes those inputs used, for ranking the quality and reliability of the information used to determine fair values.  The standard requires that each asset and liability carried at fair value be classified into one of the following categories:

Level 1: Quoted market prices in active markets for identical assets or liabilities.

Level 2: Observable market based inputs or unobservable inputs that are corroborated by market data.

Level 3: Unobservable inputs that are not corroborated by market data.

The Company has an established process for determining fair value for its financial assets and liabilities, principally cash and cash equivalents and foreign currency exchange contracts.  Fair value is based on quoted market prices, where available.  If quoted market prices are not available, fair value is based on assumptions that use as inputs market-based parameters.  The following sections describe the valuation methodologies used by the Company to measure different financial instruments at fair value, including an indication of the level in the fair value hierarchy in which each instrument is generally classified.  Where appropriate the description includes details of the key inputs to the valuations and any significant assumptions.

Cash equivalents.  Included within "Cash and cash equivalents" are principally investments in tax-free and taxable money market funds with municipal bond issuances as the underlying securities as well as government agency obligations and corporate bonds, all of which maintain AAA credit ratings.  Also included within cash equivalents were our investments in non-domestic bank certificates of deposit.  The Company uses quoted market prices to determine the fair value of these investments and they are classified in Level 1 of the fair value hierarchy.  The carrying amounts approximate fair value because of the short maturity of the instruments.

Derivative contracts.  The Company uses significant other observable inputs that are readily available in public markets or can be derived from information available in publicly quoted markets to determine the fair value of its derivative contracts.  These instruments consist of foreign currency exchange contracts, are included within "Other accrued liabilities," and are classified in Level 2 of the fair value hierarchy.  Fluctuations in the fair values of derivative instruments are recorded in accumulated other comprehensive loss and reclassified into earnings as the underlying hedged items affect earnings.  There were no such instruments as of December 31, 2011.

IDSI acquisition notes.  The Company issued non-interest bearing notes associated with its 2010 acquisition of Interlocking Deck Systems International, LLC (IDSI).  The Company determined the fair value of these notes by computing the present value of the note payments using an interest rate formula applicable to the Company's long-term debt.  This note was paid during the period ended March 31, 2012.  The note was included within "Current maturities of long-term debt" at December 31, 2011.

The following assets and liabilities of the Company were measured at fair value on a recurring basis subject to the disclosure requirements of ASC Topic 820 at March 31, 2012 and December 31, 2011:

				Fair Value Measurements at Reporting Date Using
				Quoted Prices in		Significant
				Active Markets		Other			Significant
				for Identical		Observable			Unobservable
	March 31,			Assets		Inputs			Inputs
	2012			(Level 1)		(Level 2)			(Level 3)
	In thousands
Assets
Domestic money market funds	$	37,270		$	37,270	$	0		$	0
Non domestic bank certificates of deposit		20,952			20,952		0			0
Cash equivalents at fair value		58,222			58,222		0			0
Total Assets	$	58,222		$	58,222	$	0		$	0
Liabilities
Derivatives	$	(13	)	$	0	$	(13	)	$	0
Total other accrued liabilities		(13	)		0		(13	)		0
Total Liabilities	$	(13	)	$	0	$	(13	)	$	0
				Fair Value Measurements at Reporting Date Using
				Quoted Prices in		Significant
				Active Markets		Other				Significant
				for Identical		Observable				Unobservable
	December 31,			Assets		Inputs				Inputs
		2011		(Level 1)		(Level 2)				(Level 3)
	In thousands
Assets
Domestic money market funds	$	42,273		$	42,273	$	0		$	0
Non domestic bank certificates of deposit		22,520			22,520		0			0
Cash equivalents at fair value		64,793			64,793		0			0
Total Assets	$	64,793		$	64,793	$	0		$	0
Liabilities
IDSI acquisition short-term note	$	(945	)	$	0	$	(945	)	$	0
Total current maturities of other long-term debt		(945	)		0		(945	)		0
Total Liabilities	$	(945	)	$	0	$	(945	)	$	0