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FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS (Tables) | 9 Months Ended
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Sep. 30, 2016
FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS |
Schedule of financial instruments and the methods and assumptions used in estimating fair value disclosures |
|  | September 30 |  | December 31 |
|  | 2016 |  | 2015 |
|  | (in thousands) |
Cash and cash equivalents |  |  |  |  |  |  |
Cash deposits(1) |  | $ | 102,598 |  | $ | 110,279 |
Variable rate demand notes(1)(2) |  |  | 19,994 |  |  | 29,790 |
Money market funds(3) |  |  | 7,803 |  |  | 24,904 |
Total cash and cash equivalents |  | $ | 130,395 |  | $ | 164,973 |
Short-term investments |  |  |  |  |  |  |
Certificates of deposit(1) |  | $ | 59,346 |  | $ | 61,597 |
Restricted cash(4) |  |  |  |  |  |  |
Cash deposits(1) |  | $ | 962 |  | $ | 1,384 |
| (1) |  | Recorded at cost plus accrued interest, which approximates fair value.
| (2) |  | Amounts may be redeemed on a daily basis with the original issuer.
| (3) |  | Recorded at fair value as determined by quoted market prices (see amounts presented in the table of financial assets and liabilities measured at fair value within this Note).
| (4) |  | Amounts restricted for use are subject to change based on the requirements of the Company’s collateralized facilities (see Note E).
Schedule of fair value and carrying value disclosures of financial instruments |
|  | September 30 |  | December 31 |
|  | 2016 |  | 2015 |
|  | (in thousands) |
|  |  | Carrying |  |  | Fair |  |  | Carrying |  |  | Fair |
|  |  | Value |  |  | Value |  |  | Value |  |  | Value |
Credit Facility(1) |  | $ | 70,000 |  | $ | 70,000 |  | $ | 70,000 |  | $ | 70,000 |
Accounts receivable securitization borrowings(2) |  |  | 35,000 |  |  | 35,000 |  |  | 35,000 |  |  | 35,000 |
Notes payable(3) |  |  | 131,882 |  |  | 131,822 |  |  | 106,703 |  |  | 106,495 |
|  | $ | 236,882 |  | $ | 236,822 |  | $ | 211,703 |  | $ | 211,495 |
| (1) |  | The revolving credit facility (the “Credit Facility”) under the Company’s Amended and Restated Credit Agreement carries a variable interest rate based on LIBOR, plus a margin. The Credit Facility is considered to be priced at market for debt instruments having similar terms and collateral requirements (Level 2 of the fair value hierarchy).
| (2) |  | Borrowings under the Company’s accounts receivable securitization program carry a variable interest rate based on LIBOR, plus a margin. The borrowings are considered to be priced at market for debt instruments having similar terms and collateral requirements (Level 2 of the fair value hierarchy).
| (3) |  | Fair value of the notes payable was determined using a present value income approach based on quoted interest rates from lending institutions with which the Company would enter into similar transactions (Level 2 of the fair value hierarchy).
Schedule of financial assets and liabilities measured at fair value on a recurring basis |
|  | September 30, 2016 |
|  |  |  |  | Fair Value Measurements Using |
|  |  |  |  | Quoted Prices |  | Significant |  | Significant |
|  |  |  |  | In Active |  | Observable |  | Unobservable |
|  |  |  |  | Markets |  | Inputs |  | Inputs |
|  | Total |  | (Level 1) |  | (Level 2) |  | (Level 3) |
|  | (in thousands) |
Assets: |  |  |  |  |  |  |  |  |  |  |  |  |
Money market funds(1)(3) |  | $ | 7,803 |  | $ | 7,803 |  | $ | — |  | $ | — |
Equity, bond, and money market mutual funds held in trust related to the Voluntary Savings Plan(2)(3) |  |  | 2,072 |  |  | 2,072 |  |  | — |  |  | — |
|  | $ | 9,875 |  | $ | 9,875 |  | $ | — |  | $ | — |
Liabilities: |  |  |  |  |  |  |  |  |  |  |  |  |
Contingent consideration(4) |  | $ | 6,775 |  | $ | — |  | $ | — |  | $ | 6,775 |
Interest rate swap(5) |  |  | 1,605 |  |  | — |  |  | 1,605 |  |  | — |
|  | $ | 8,380 |  | $ | — |  | $ | 1,605 |  | $ | 6,775 |
|  | December 31, 2015 |
|  |  |  |  | Fair Value Measurements Using |
|  |  |  |  | Quoted Prices |  | Significant |  | Significant |
|  |  |  |  | In Active |  | Observable |  | Unobservable |
|  |  |  |  | Markets |  | Inputs |  | Inputs |
|  | Total |  | (Level 1) |  | (Level 2) |  | (Level 3) |
|  | (in thousands) |
Assets: |  |  |  |  |  |  |  |  |  |  |  |  |
Money market funds(1)(3) |  | $ | 24,904 |  | $ | 24,904 |  | $ | — |  | $ | — |
Equity, bond, and money market mutual funds held in trust related to the Voluntary Savings Plan(2)(3) |  |  | 2,127 |  |  | 2,127 |  |  | — |  |  | — |
|  | $ | 27,031 |  | $ | 27,031 |  | $ | — |  | $ | — |
Liabilities: |  |  |  |  |  |  |  |  |  |  |  |  |
Interest rate swap(5) |  | $ | 897 |  | $ | — |  | $ | 897 |  | $ | — |
| (1) |  | Included in cash and cash equivalents.
| (2) |  | Nonqualified deferred compensation plan investments consist of U.S. and international equity mutual funds, government and corporate bond mutual funds, and money market funds which are held in a trust with a third-party brokerage firm. Quoted market prices are used to determine fair values of the investments which are included in other long-term assets, with a corresponding liability reported in other long-term liabilities.
| (3) |  | Fair value measured using quoted prices of identical assets in active markets.
| (4) |  | Included in accrued expenses and other long-term liabilities, based on when expected payouts become due. The estimated fair value of contingent consideration for an earn-out agreement related to the September 2016 acquisition of LDS was determined by assessing Level 3 inputs with a discounted cash flow approach using various probability-weighted scenarios. The Level 3 inputs include scenarios of estimated revenues and gross margins to be achieved for the applicable performance periods, probability weightings assigned to the performance scenarios, and the discount rate applied, which was 11.5% as of September 30, 2016. Subsequent changes to the fair value as a result of recurring assessments will be recognized in operating income.
| (5) |  | Included in other long-term liabilities. The interest rate swap fair value was determined by discounting future cash flows and receipts based on expected interest rates observed in market interest rate curves adjusted for estimated credit valuation considerations reflecting nonperformance risk of the Company and the counterparty, which are considered to be in Level 3 of the fair value hierarchy. The Company assessed Level 3 inputs as insignificant to the valuation at September 30, 2016 and December 31, 2015 and considers the interest rate swap valuation in Level 2 of the fair value hierarchy.
Schedule of changes in fair value of the liabilities |
|  | Contingent Consideration |
|  | (in thousands)
Balance at December 31, 2015 |  | $ | — |
Contingent consideration liability recorded at fair value for business acquisition |  |  | 6,711 |
Change in fair value included in operating income |  |  | 64 |
Balance at September 30, 2016 |  | $ | 6,775 |

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- Definition Tabular disclosure of the fair value measurement of liabilities using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets), and gains or losses recognized in other comprehensive income (loss) and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs) by class of liability. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=66048111&loc=d3e19279-110258 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (c) -URI http://asc.fasb.org/extlink&oid=66048111&loc=d3e19207-110258 + Details
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