Fair Value Measurements

(3) Fair Value Measurements

Financial assets and liabilities measured at fair value on a recurring basis, by level within the fair value hierarchy, consisted of the following (in thousands), as of:


		September 30, 2013
		Fair Value Measurements Using Input Types
	Line Item	Level 1		Level 2		Level 3		Total

Non-hedging derivative assets:
Foreign currency forward contracts	Prepaid expenses and other current assets	$	0	$	0	$	0	$	0

Non-hedging derivative liabilities:
Foreign currency forward contracts	Accounts payable and accrued expenses	$	0	$	42	$	0	$	42

The fair value of our foreign currency forward contracts is determined using Level 2 observable market inputs to extrapolate forward points to be added to or subtracted from the closing market spot rate on the reporting date, and then discounted to present value. All foreign currency forward contracts outstanding as of September 30, 2013 were for durations of three months or less and consisted of the following sale contracts (in thousands):


	Notional Value Local Currency			Notional Value U.S. Dollar		Fair Value Gain (Loss) U.S. Dollar
Forward contracts to sell:
Australian Dollar		AUD	1,081	$	1,000	$	(2	)
Brazilian Real		BRL	2,287		1,000		(9	)
British Pound		GBP	807		1,300		(5	)
Canadian Dollar		CAD	414		400		0
Chinese Renminbi		CNY	9,262		1,500		(4	)
Euro		EUR	3,554		4,800		(7	)
Indian Rupee		INR	12,933		200		(1	)
Japanese Yen		JPY	128,089		1,300		(5	)
Korean Won		KRW	758,933		700		(2	)
Mexican Peso		MXN	2,659		200		(1	)
Polish Zloty		PLN	5,033		1,600		(2	)
Russian Rouble		RUB	6,596		200		0
Singapore Dollar		SGD	503		400		(1	)
South African Rand		ZAR	7,139		700		0
Swedish Krona		SEK	1,936		300		0
Swiss Franc		CHF	272		300		(1	)
Turkish New Lira		TRY	207		100		(1	)
United Arab Emirates Dirham		AED	737		200		(1	)

				$	16,200	$	(42	)

As of December 31, 2012, the Company held no foreign currency forward contracts.

Changes in the fair value of our foreign currency forward contracts for each of the three and nine months ended September 30, 2013 and 2012 were as follows (in thousands):


	Gains (Losses) on Derivative Instruments Recognized in Income
		Three months ended September 30,					Nine months ended September 30,
	Location	2013			2012		2013			2012

Non-hedging derivative instruments:
Foreign currency forward contracts outstanding	Other income (expense), net	$	(47	)	$	0	$	(42	)	$	0

Foreign currency forward contracts settled	Other income (expense), net	$	(524	)	$	0	$	(524	)	$	0

There were no transfers among the levels within the fair value hierarchy during each of the three and nine months ended September 30, 2013 and 2012. As of September 30, 2013 and December 31, 2012, the Company had no assets or liabilities that were required to be measured at fair value on a non-recurring basis.

The Company also estimates the fair value of cash and cash equivalents, restricted cash, accounts receivable, accounts payable and accrued expenses, and accrued compensation and employee benefits. The Company considers the carrying value of these instruments in the financial statements to approximate fair value due to their short maturities.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

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