Annual report pursuant to Section 13 and 15(d)

Fair Value Measures

v2.4.0.8
Fair Value Measures
12 Months Ended
Dec. 31, 2013
Fair Value Disclosures [Abstract]  
Fair Value Measures
FAIR VALUE MEASURES
Certain assets and liabilities are reported at fair value on either a recurring or nonrecurring basis. Fair value is defined as an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants, under a three-tier fair value hierarchy that prioritizes the inputs used in measuring fair value as follows:
Level 1
–     observable inputs such as quoted prices for identical assets or liabilities in active liquid markets;
Level 2
–     inputs, other than the quoted market prices in active markets, that are observable, either directly or indirectly; or observable market prices in markets with insufficient volume and/or infrequent transactions; and
Level 3
–     unobservable inputs for which there is little or no market data available, that require the reporting entity to develop its own assumptions.
Assets and liabilities measured at fair value on a recurring basis as of December 31, 2013 are as follows (in thousands):
 
 
Level 1
 
Level 2
 
Level 3
 
Total
Assets:
 
 
 
 
 
 
 
 
Cash equivalents
 
 
 
 
 
 
 
 
Money market funds
 
$
175,624

 
$

 
$

 
$
175,624

Time deposits
 
25,111

 
9,526

 

 
34,637

Certificates of deposit
 

 
735

 

 
735

Reverse repurchase agreements
 

 
45,000

 

 
45,000

U.S. Government-backed municipal bonds
 

 
9,898

 

 
9,898

Available-for-sale short-term investments
 
 
 
 
 
 
 
 
Short-term municipal bond fund
 
15,004

 

 

 
15,004

Certificates of deposit
 

 
9,546

 

 
9,546

Variable-rate demand notes
 

 
52,105

 

 
52,105

U.S. Government-backed municipal bonds
 

 
14,764

 

 
14,764

Other short-term investments
 
 
 
 
 
 
 
 
Mutual fund shares
 
336

 

 

 
336

Other current assets
 
 
 
 
 
 
 
 
Derivative financial instruments (Note 20)
 

 
4,892

 

 
4,892

Non-current assets
 
 
 
 
 
 
 
 
Derivative financial instruments (Note 20)
 

 
24

 

 
24

Mutual fund shares
 
4,855

 

 

 
4,855

Total assets measured at fair value
 
$
220,930

 
$
146,490

 
$

 
$
367,420

Liabilities:
 
 
 
 
 
 
 
 
Accrued liabilities
 
 
 
 
 
 
 
 
Derivative financial instruments (Note 20)
 
$

 
$
1,152

 
$

 
$
1,152

Other long-term liabilities
 
 
 
 
 
 
 
 
Derivative financial instruments (Note 20)
 

 
95

 

 
95

Total liabilities measured at fair value
 
$

 
$
1,247

 
$

 
$
1,247


Assets and liabilities measured at fair value on a recurring basis at December 31, 2012 are as follows (in thousands):
 
 
Level 1
 
Level 2
 
Level 3
 
Total
Assets:
 
 
 
 
 
 
 
 
Cash equivalents
 
 
 
 
 
 
 
 
Money market funds
 
$
70,857

 
$

 
$

 
$
70,857

Time deposits
 
25,035

 

 

 
25,035

Certificates of deposit
 

 
2,450

 

 
2,450

U.S. Government-backed repurchase agreements
 

 
25,000

 

 
25,000

U.S. Government-backed municipal bonds
 

 
5,348

 

 
5,348

Available-for-sale short-term investments
 
 
 
 
 
 
 
 
Certificates of deposit
 

 
7,596

 

 
7,596

Variable-rate demand notes
 

 
22,640

 

 
22,640

U.S. Government-backed municipal bonds
 

 
14,425

 

 
14,425

Other current assets
 
 
 
 
 
 
 
 
Derivative financial instruments (Note 20)
 

 
6,219

 

 
6,219

Non-current assets
 
 
 
 
 
 
 
 
Derivative financial instruments (Note 20)
 

 
489

 

 
489

Mutual fund shares
 
4,080

 

 

 
4,080

Total assets measured at fair value
 
$
99,972

 
$
84,167

 
$

 
$
184,139

Liabilities:
 
 
 
 
 
 
 
 
Accrued liabilities
 
 
 
 
 
 
 
 
Derivative financial instruments (Note 20)
 
$

 
$
1,322

 
$

 
$
1,322

Total liabilities measured at fair value
 
$

 
$
1,322

 
$

 
$
1,322


Level 1 instrument valuations are obtained from real-time quotes for transactions in active exchange markets involving identical assets. Level 2 instrument valuations are obtained from inputs, other than quoted market prices in active markets, that are directly or indirectly observable in the marketplace and quoted prices in markets with limited volume or infrequent transactions.
Non-recurring fair value measurements:
During the fourth quarter of 2013, the Company recorded an impairment in its EMEA segment of $8,995,000 for its European distribution center in Cambrai, France, writing the assets down to their estimated fair value of $19,300,000. This impairment charge is included in selling, general and administrative expense on the Consolidated Statement of Operations. The Company determined that events and circumstances, including the ongoing weak macro-economic environment in Europe and history of declining sales and profitability in the EMEA direct business, indicated that the carrying value may be impaired. Significant factors and estimates used in the evaluation and fair value determination include management's plans for future operations, recent operating results, projected cash flows and third-party valuation estimates. This nonrecurring fair value measurement was developed using significant unobservable inputs (Level 3). Third-party valuation estimates were developed using local market data for sales transactions of similar facilities.
There were no material assets and liabilities measured at fair value on a nonrecurring basis at December 31, 2012.