Fair Value Measurements

(4) 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:


		December 31, 2014
		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	$	1,647	$	0	$	1,647

Non-hedging derivative liabilities:
Foreign currency forward contracts	Accounts payable and accrued expenses	$	0	$	6	$	0	$	6

		December 31, 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	$	5	$	0	$	5

Non-hedging derivative liabilities:
Foreign currency forward contracts	Accounts payable and accrued expenses	$	0	$	46	$	0	$	46

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 December 31, 2014 were for durations of twelve 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	985	$	900	$	103
Brazilian Real		BRL	3,184		1,300		157
British Pound		GBP	950		1,600		122
Canadian Dollar		CAD	757		700		49
Chinese Renminbi		CNY	10,664		1,700		(5	)
Euro		EUR	3,534		4,800		515
Indian Rupee		INR	19,347		300		3
Japanese Yen		JPY	131,508		1,300		201
Korean Won		KRW	881,552		850		53
Mexican Peso		MXN	4,001		300		32
Polish Zloty		PLN	4,980		1,600		203
Russian Rouble		RUB	7,323		200		86
Singapore Dollar		SGD	500		400		23
South African Rand		ZAR	6,769		600		32
Swedish Krona		SEK	1,698		250		33
Swiss Franc		CHF	268		300		30
Turkish New Lira		TRY	230		100		5
United Arab Emirates Dirham		AED	738		200		(1	)

				$	17,400	$	1,641

Changes in the fair value of our foreign currency forward contracts during 2014, 2013, and 2012 were as follows (in thousands):


	Gain (Loss) on Derivative Instruments Recognized in Income
		Years Ended December 31,
	Location	2014			2013			2012

Non-hedging derivative instruments:
Unrealized gain (loss) on foreign currency forward contracts	Other income (expense), net	$	1,682		$	(41	)	$	0

Realized loss on foreign currency forward contracts	Other (expense) income, net	$	(562	)	$	(629	)	$	0

There were no transfers among the levels within the fair value hierarchy during the years ended December 31, 2014, 2013, and 2012. As of December 31, 2014 and December 31, 2013, the Company had no assets or liabilities that were required to be measured at fair value on a non-recurring basis.

- 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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