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70
See Note E for additional information on the fair value measurements for all financial assets and liabilities, including derivative assets
and derivative liabilities, that are measured at fair value on a recurring basis.
E. FAIR VALUE MEASUREMENTS
Assets and Liabilities Measured at Fair Value on a Recurring Basis
On a recurring basis, the Company measures certain financial assets and liabilities at fair value, including foreign-currency contracts,
cash equivalents, marketable securities and insurance contracts held in deferred compensation plans. At December 31, 2014 and 2013,
all of the Company’s financial assets and liabilities were classified as either Level 1 or Level 2 in the fair value hierarchy. Assets
valued using quoted market prices in active markets and classified as Level 1 are certain deferred compensation investments, primarily
money market and mutual funds. Assets and liabilities valued based on other observable inputs and classified as Level 2 are foreign
currency contracts and certain deferred compensation investments, primarily insurance contracts.
The following tables summarize the Company’s fair value hierarchy for its financial assets and liabilities measured at fair value on a
recurring basis at December 31, 2014 and 2013 (in thousands):
Fair Value Measurements at Reporting Date Using
December 31,
2014
Quoted Prices in
Active Markets
for Identical
Assets (Level 1)
Significant
Other
Observable
Inputs (Level 2)
Significant
Unobservable
Inputs
(Level 3)
Financial Assets:
Deferred compensation assets $ 1,859 $ 1,245 $ 614 $ —
Financial Liabilities:
Foreign currency contracts $ 518 $ — $ 518 $ —
Fair Value Measurements at Reporting Date Using
December 31,
2013
Quoted Prices in
Active Markets
for Identical
Assets (Level 1)
Significant
Other
Observable
Inputs (Level 2)
Significant
Unobservable
Inputs
(Level 3)
Financial Assets:
Deferred compensation assets $ 1,920 $ 1,271 $ 649 $ —
Foreign currency contracts 59 — 59 —
Financial Liabilities:
Foreign currency contracts $ 228 $ — $ 228 $ —
Financial Instruments Not Recorded at Fair Value
The carrying amounts of the Company’s other financial assets and liabilities including cash, accounts receivable, accounts payable and
accrued liabilities approximate their respective fair values because of the relatively short period of time between their origination and
their expected realization or settlement.