Fair Value Measurement

6 Months Ended

Jun. 30, 2012

Fair Value Measurement

Fair Value Measurement

14.  Fair Value Measurement

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.  The fair value hierarchy distinguishes between (1) market participant assumptions developed based on market data obtained from independent sources (observable inputs) and (2) an entity’s own assumptions about market participant assumptions developed based on the best information available in the circumstances (unobservable inputs).  The fair value hierarchy consists of three broad levels, which gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3).  The three levels of the fair value hierarchy are described below:

·Level 1 — Quoted prices (unadjusted) in active markets for identical assets or liabilities;

·Level 2 — Inputs, other than the quoted prices in active markets, that are observable either directly or indirectly; and

·Level 3 — Unobservable inputs that reflect the reporting entity’s own assumptions.

The following financial instrument assets (liabilities) are presented below at carrying amount, fair value, and classification within the fair value hierarchy (Refer to Notes 6 and 9 for details relating to derivative instruments and borrowing arrangements). The only financial instruments measured at fair value on a recurring basis are derivative instruments:

	June 30, 2012													December 31, 2011
	Carrying			Fair Value										Carrying			Fair
(Dollars in thousands)	Amount			Total			Level 1		Level 2			Level 3		Value			Value
Derivatives, net	$	(204	)	$	(204	)	$	—	$	(204	)	$	—	$	(1,167	)	$	(1,167	)
U.S. credit facility	(10,500		)	(10,500		)	—		(10,500		)	—		—			—
Japanese working capital loan	(24,565		)	(24,565		)	—		(24,565		)	—		(22,894		)	(22,894		)
Japanese term loan	(2,544		)	(2,544		)	—		(2,544		)	—		(4,142		)	(4,142		)
Other loans	(312		)	(312		)	—		(312		)	—		(333		)	(333		)

Cash and cash equivalents, accounts receivable, and accounts payable included in the condensed consolidated balance sheets approximate fair value.  The recorded debt amounts are primarily based on prime rates, and, accordingly, the carrying value of these obligations equals fair value.