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FORM 10-K
The Company early-adopted ASU 2015-17 as of December 31, 2015, and applied the requirements of the update retrospectively. The
adoption of ASU 2015-17 resulted in the reclassification of $7.4 million and $17.3 million of deferred income tax liabilities from the
current liability "Deferred income taxes" to other long-term liabilities "Deferred income taxes" within the accompanying Consolidated
Balance Sheets as of December 31, 2015 and 2014, respectively. Other than this reclassification, the adoption of ASU 2015-17 did not
have an impact on the Company's consolidated financial condition, results of operations or cash flows.
In February of 2016, the FASB issued ASU No. 2016-02, "Leases (Topic 842)" ("ASU 2016-02"). Under ASU 2016-02, an entity will
be required to recognize right-of-use assets and lease liabilities on its balance sheet and disclose key information about leasing
arrangements. ASU 2016-02 offers specific accounting guidance for a lessee, a lessor and sale and leaseback transactions. Lessees and
lessors are required to disclose qualitative and quantitative information about leasing arrangements to enable a user of the financial
statements to assess the amount, timing and uncertainty of cash flows arising from leases. For public companies, ASU 2016-02 is effective
for annual reporting periods beginning after December 15, 2018, including interim periods within that reporting period, and requires a
modified retrospective adoption, with early adoption permitted. The Company will adopt this guidance beginning with its first quarter
ending March 31, 2019. The Company is in the process of evaluating the future impact of ASU 2016-02 on its consolidated financial
position, results of operations and cash flows.
NOTE 2 – FAIR VALUE MEASUREMENTS
Financial assets and liabilities measured at fair value on a recurring basis:
The carrying amount of the Company's marketable securities is included in "Other assets, net" on the accompanying Consolidated Balance
Sheets as of December 31, 2015 and 2014. The Company recorded a decrease in fair value related to its marketable securities in the
amount of $0.2 million, which was included in "Other income (expense)" on the accompanying Consolidated Statements of Income, for
the year ended December 31, 2015.
The tables below identify the estimated fair value of the Company's marketable securities (designated as trading securities), using the
market approach. The fair values as of December 31, 2015 and 2014, were determined by reference to quoted market prices (Level 1)
(in thousands):
December 31, 2015
Quoted Prices in Active Markets
for Identical Instruments
(Level 1)
Significant Other
Observable Inputs
(Level 2)
Significant
Unobservable Inputs
(Level 3) Total
Marketable securities $ 16,895 $ — $ — $ 16,895
December 31, 2014
Quoted Prices in Active Markets
for Identical Instruments
(Level 1)
Significant Other
Observable Inputs
(Level 2)
Significant
Unobservable Inputs
(Level 3) Total
Marketable securities $ 15,378 $ — $ — $ 15,378
Non-financial assets and liabilities measured at fair value on a nonrecurring basis:
Certain long-lived non-financial assets and liabilities may be required to be measured at fair value on a nonrecurring basis in certain
circumstances, including when there is evidence of impairment. These non-financial assets and liabilities may include assets acquired
in a business combination or property and equipment that are determined to be impaired. As of December 31, 2015 and 2014, the Company
did not have any non-financial assets or liabilities that had been measured at fair value subsequent to initial recognition.
Fair value of financial instruments:
The carrying amounts of the Company's senior notes are included in "Long-term debt, less current portion" on the accompanying
Consolidated Balance Sheets as of December 31, 2015 and 2014 (see Note 5).