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Fair Value of Financial Instruments
 9 Months Ended
Sep. 30, 2014
Fair Value of Financial Instruments

14. Fair Value of Financial Instruments—The carrying values of cash, receivables and accounts payable approximate their fair values because of the short maturity of these instruments. The fair value of the Company’s long-term debt and note payable to bank is estimated based on the quoted market prices for the same or similar issues or on the current rates offered to the Company for debt of the same remaining maturities. Such fair value approximates the respective carrying values of the Company’s long-term debt and note payable to bank.

The Company’s cash flow hedge related to a variable debt instrument is measured at fair value on a recurring basis, and the balances as of September 30, 2014 and December 31, 2013 (which are included in other liabilities in the condensed consolidated balance sheets) were as follows:

 

     Fair Value Measurements
Using Input Type		  
     Level 1      Level 2      Level 3  

As of September 30, 2014:

         

Liability:

         

Interest rate derivative financial instruments (1)

    $ —        $ 138       $ —    
  

 

 

     

 

 

     

 

 

  

As of December 31, 2013:

         

Liability:

         

Interest rate derivative financial instruments (1)

    $ —        $ 564       $ —    
  

 

 

     

 

 

     

 

 

  

 

(1) Includes accrued interest expense

The valuation techniques used to measure the fair value of the derivative financial instruments above in which the counterparties have high credit ratings, were derived from pricing models, such as discounted cash flow techniques, with all significant inputs derived from or corroborated by observable market data. The Company’s discounted cash flow techniques use observable market inputs, such as LIBOR-based yield curves and foreign currency forward rates.