FAIR VALUE OF FINANCIAL INSTRUMENT

3 Months Ended

Mar. 31, 2012

FAIR VALUE OF FINANCIAL INSTRUMENT

13. FAIR VALUE OF FINANCIAL INSTRUMENTS

For assets and liabilities measured at fair value on a recurring and nonrecurring basis, a three-level hierarchy of measurements based upon observable and unobservable inputs is used to arrive at fair value. Observable inputs are developed based on market data obtained from independent sources, while unobservable inputs reflect our assumptions about valuation based on the best information available in the circumstances. Depending on the inputs, we classify each fair value measurement as follows:

Level 1—based upon quoted prices for identical instruments in active markets,

Level 2—based upon quoted prices for similar instruments, prices for identical or similar instruments in markets that are not active, or model-derived valuations, all of whose significant inputs are observable, and

Level 3—based upon one or more significant unobservable inputs.

The carrying values of cash and temporary investments, accounts receivable, accounts payable and accrued liabilities are reasonable estimates of their fair values because of the short maturity of these financial instruments.  The carrying values of long-term obligations are reasonable estimates of their fair values based on the rates available for obligations with similar terms and maturities.

The fair value of derivative assets and liabilities are measured assuming that the unit of account is an individual derivative transaction and that each derivative could be sold or transferred on a stand-alone basis. We classify within Level 2 our forward foreign currency exchange contracts based upon quoted prices for similar instruments that are actively traded.  For more information regarding derivatives, see Note 14, Derivative Financial Instruments.

The following table presents the financial instruments measured at fair value on a recurring basis:

	March 31, 2012
	Level 1		Level 2		Level 3		Total
(in thousands)
Current Assets
Derivative financial instruments
Foreign currency contracts	$	—	$	29	$	—	$	29
Total assets	$	—	$	29	$	—	$	29
Current Liabilities
Derivative financial instruments
Foreign currency contracts	$	—	$	313	$	—	$	313
Total liabilities	$	—	$	313	$	—	$	313

	December 31, 2011
	Level 1		Level 2		Level 3		Total
(in thousands)
Current Assets
Derivative financial instruments
Foreign currency contracts	$	—	$	43	$	—	$	43
Total assets	$	—	$	43	$	—	$	43
Current Liabilities
Derivative financial instruments
Foreign currency contracts	$	—	$	—	$	—	$	—
Total liabilities	$	—	$	—	$	—	$	—