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Note 20 - Financial Instruments | 12 Months Ended
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Dec. 31, 2011
Financial Instruments Disclosure [Text Block] |
20. | Financial instruments
Concentration of credit risk The Company is subject to credit risk with respect to its cash and cash equivalents, accounts receivable and other receivables. Concentrations of credit risk with respect to the receivables are limited due to the large number of entities comprising the Company’s customer base and their dispersion across many different service lines in various countries. Interest rate risk The Company maintains an interest rate risk management strategy that uses interest rate hedging contracts from time to time. The Company’s specific goals are to: (i) manage interest rate sensitivity by modifying the characteristics of its debt and (ii) lower the long-term cost of its borrowed funds. Fluctuations in interest rates affect the fair value of the hedging contracts as their value depends on the prevailing market interest rate. Hedging contracts are monitored on a monthly basis. As of December 31, 2011, the Company was party to an interest rate swap agreement to exchange the fixed rate on a portion of its debt to a floating rate. On the 5.44% Senior Notes, an interest rate swap exchanges the fixed rate on $40,000 of principal for LIBOR (6 month in arrears) + 387 basis points. The terms of the swap match the term of the 5.44% Senior Notes with a maturity of April 1, 2015. The interest rate swap is being accounted for as a fair value hedge. The swap is carried at fair value on the balance sheet, with gains or losses recognized in earnings. The carrying value of the hedged debt is adjusted for changes in fair value attributable to the hedged interest rate risk; the associated gain or loss is recognized concurrently in earnings. So long as the hedge is considered highly effective, the net impact on earnings is nil. The following tables provide fair value information of the hedging instrument and the effect of the hedging instrument during the period:
|  |  | 2011 |
Derivative designated as hedging instrument |  |  | Balance sheet location |  |  | Fair Value |
Interest rate swaps |  |  | Other assets (non-current) |  |  | $ | 332 |
During 2010, the Company settled two interest rate swap agreements for a cash gain in the amount of $669. This gain is amortized over the remaining life of the underlying debt which has a final maturity of April 1, 2015. Fair values of financial instruments The following table provides the financial assets and liabilities carried at fair value measured on a recurring basis as of December 31, 2011:
|  | Carrying value at |  |  | Fair value measurements |
|  | December 31, 2011 |  |  | Level 1 |  |  | Level 2 |  |  | Level 3 |
Interest rate swap asset |  | $ | 332 |  |  | $ | - |  |  | $ | 332 |  |  | $ | - |
Contingent consideration liability |  |  | 12,844 |  |  |  | - |  |  |  | - |  |  |  | 12,844 |
The fair value of the interest rate swap liability was determined using widely accepted valuation techniques. The inputs to the measurement of the fair value of contingent consideration related to acquisitions made after December 31, 2008 are Level 3 inputs. The fair value measurements were made using a discounted cash flows approach; significant model inputs were expected future operating cash flows and discount rates. Changes in the fair value of the contingent consideration liability are comprised of the following:
Balance, December 31, 2010 |  | $ | 13,312 |
Amounts recognized on acquisitions |  |  | 3,482 |
Fair value adjustments (note 5) |  |  | 969 |
Resolved and settled in cash |  |  | (1,806) |
Resolved and recorded in "Accrued liabilities" |  |  | (3,109) |
Foreign exchange |  |  | (4) |
Balance, December 31, 2011 |  | $ | 12,844 |
Less: current portion |  | $ | 2,678 |
Non-current portion |  | $ | 10,166 |
The carrying amounts for cash and cash equivalents, accounts receivable, accounts payable and accrued liabilities approximate fair values due to the short maturity of these instruments, unless otherwise indicated. The following are estimates of the fair values for other financial instruments:
|  | 2011 |  |  | 2010 |
|  | Carrying amount |  |  | Fair value |  |  | Carrying amount |  |  | Fair value |
Other receivables |  | $ | 6,684 |  |  | $ | 6,684 |  |  | $ | 8,452 |  |  | $ | 8,452 |
Investment in Colliers International UK plc |  |  | - |  |  |  | - |  |  |  | 8,993 |  |  |  | 12,677 |
Long-term debt |  |  | 316,415 |  |  |  | 332,918 |  |  |  | 240,740 |  |  |  | 258,930 |
Convertible debentures |  |  | 77,000 |  |  |  | 83,930 |  |  |  | 77,000 |  |  |  | 95,865 |
Other receivables include notes receivable from minority shareholders and other non-current receivables. The investment in Colliers International UK plc is included under the balance sheet caption “Other assets”.

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- Definition The entire disclosure for financial instruments. This disclosure includes, but is not limited to, fair value measurements of short and long term marketable securities, international currencies forward contracts, and auction rate securities. Financial instruments may include hedging and non-hedging currency exchange instruments, derivatives, securitizations and securities available for sale at fair value. Also included are investment results, realized and unrealized gains and losses as well as impairments and risk management disclosures. + References No definition available. + Details
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