FAIR VALUE

The following table provides a summary of assets and liabilities as of September 30, 2016, measured at fair value on a recurring basis:



Description	Balance as of September 30, 2016		Quoted Prices in Active Markets for Identical Assets or Liabilities (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets:
Foreign exchange contracts	$	1,140	$	—	$	1,140	$	—
Total assets	$	1,140	$	—	$	1,140	$	—

Liabilities:
Foreign exchange contracts	$	1,223	$	—	$	1,223	$	—
Interest rate swap agreements	165		—		165		—
Contingent considerations	9,377		—		—		9,377
Forward contract	14,489		—		—		14,489
Deferred compensation	24,934		—		24,934		—
Total liabilities	$	50,188	$	—	$	26,322	$	23,866

The following table provides a summary of assets and liabilities as of December 31, 2015, measured at fair value on a recurring basis:



Description	Balance as of December 31, 2015		Quoted Prices in Active Markets for Identical Assets or Liabilities (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets:
Foreign exchange contracts	$	803	$	—	$	803	$	—
Commodity contracts	40		—		40		—
Total assets	$	843	$	—	$	843	$	—

Liabilities:
Foreign exchange contracts	$	3,034	$	—	$	3,034	$	—
Commodity contracts	8		—		8		—
Contingent considerations	9,184		—		—		9,184
Forward contract	26,484		—		—		26,484
Deferred compensation	23,201		—		23,201		—
Total liabilities	$	61,911	$	—	$	26,243	$	35,668

The Company’s derivative contracts are valued at fair value using the market approach. The Company measures the fair value of foreign exchange contracts and interest rate swap agreements using Level 2 inputs based on observable spot and forward rates in active markets. The Company measures the fair value of commodity contracts using Level 2 inputs through observable market transactions in active markets provided by financial institutions. During the nine months ended September 30, 2016, there were no transfers between Levels 1, 2 or 3.

In connection with acquisitions, the Company recorded contingent considerations fair valued at $9,377 as of September 30, 2016. Under the contingent consideration agreements, the amounts to be paid are based upon actual financial results of the acquired entities for specified future periods. The fair value of the contingent considerations are a Level 3 valuation and fair valued using probability weighted discounted cash flow analyses.

In connection with an acquisition, the Company obtained a controlling financial interest in the acquired entity and at the same time entered into a contract to obtain the remaining financial interest in the entity over a three-year period. The amount to be paid to obtain the remaining financial interest will be based upon actual financial results of the entity through 2016. A liability was recorded for the forward contract at a fair value of $14,489 as of September 30, 2016. The change in liability from December 31, 2015 was primarily the result of a $14,438 payment to acquire an additional financial interest in the entity offset by foreign exchange translation and additional accruals recorded to interest expense of $260 for the nine months ended September 30, 2016. The fair value of the contract is a Level 3 valuation and is based on the present value of the expected future payments. The expected future payments are based on a multiple of forecasted earnings and cash flows over the three-year period ending December 31, 2016, present valued utilizing a risk based discount rate of 3.5% reflective of the Company's cost of debt and 13.6% as a risk adjusted cost of capital.

The deferred compensation liability is the Company’s obligation under its executive deferred compensation plan. The Company measures the fair value of the liability using the market values of the participants’ underlying investment fund elections.

The fair value of Cash and cash equivalents, Accounts receivable, Short-term debt excluding the current portion of long-term debt and Trade accounts payable approximated book value due to the short-term nature of these instruments at both September 30, 2016 and December 31, 2015. The fair value of long-term debt at September 30, 2016 and December 31, 2015, including the current portion, was approximately $375,548 and $342,602, respectively, which was determined using available market information and methodologies requiring judgment. The carrying value of this debt at such dates was $359,975 and $351,803, respectively. Since considerable judgment is required in interpreting market information, the fair value of the debt is not necessarily the amount that could be realized in a current market exchange.