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Fair Value of Financial Instruments
 12 Months Ended
Dec. 31, 2011
Fair Value of Financial Instruments
(4) Fair Value of Financial Instruments

 

The following tables present our financial assets and liabilities that are measured at fair value on a recurring basis and are categorized using the fair value hierarchy. The fair value hierarchy has three levels based on the reliability of the inputs used to determine fair value.

 

          Fair Value Measurements at December 31, 2011  
          Quoted Prices in     Significant Other     Significant  
          Active Markets for     Observable     Unobservable  
          Identical Assets     Inputs     Inputs  
      Total       (Level 1)       (Level 2)       (Level 3)  
Assets:                                
Short-term investments   $ —     $ —     $ —     $ —  
Liabilities:                                
Foreign currency forward exchange contracts not accounted for using hedge accounting   $ 3,532     $ —     $ 3,532     $ —  
Interest rate swaps     69       —       69       —  
                                 
    $ 3,601     $ —     $ 3,601     $ —  

 

          Fair Value Measurements at December 31,2010  
          Quoted Prices in     Significant Other     Significant  
          Active Markets for     Observable     Unobservable  
          Identical Assets     Inputs     Inputs  
      Total       (Level 1)       (Level 2)       (Level 3)  
Assets:                                
Short-term investments   $ 49,391     $ —     $ 49,391     $ —  
Foreign currency forward exchange contracts not accounted for using hedge accounting     1,024       —       1,024       —  
                                 
    $ 50,415     $ —     $ 50,415     $ —  
Liabilities:                                
Interest rate swaps   $ 333     $ —     $ 333     $ —  

 

The carrying amount of cash and cash equivalents, short-term investments, accounts receivable, other receivables, accounts payable and accrued expenses approximates fair value due to the short terms to maturity of these instruments. The carrying amount of loans payable approximates fair value as the interest rates on the Company’s indebtedness approximate current market rates. The fair value of the Company’s long-term debt was estimated based on the current rates offered to companies for debts with the same remaining maturities and is approximately equal to its carrying value.

 

 

Foreign currency forward exchange contracts are valued based on quotations from financial institutions and the value of interest rate swaps are the discounted net present value of the swaps using third party quotes obtained from financial institutions.