FAIR VALUE MEASUREMENTS

6 Months Ended

Jun. 30, 2013

NOTE 5:- FAIR VALUE MEASUREMENTS

In accordance with ASC 820, the Company measures its investment in marketable securities and foreign currency derivative contracts at fair value. Generally marketable securities are classified within Level 1, this is because these assets are valued using quoted prices in active markets. Foreign currency derivative contracts and certain corporate bonds are classified within Level 2 as the valuation inputs are based on quoted prices and market observable data of similar instruments.

Contingent consideration is classified within Level 3. The Company values the Level 3 contingent consideration using discounted cash flow of the expected future payments, whose inputs include interest rate.

The Company's financial assets measured at fair value on a recurring basis, excluding accrued interest components, consisted of the following types of instruments as of the following dates:

	December 31, 2012
	Fair value measurements using input type
	Level 1		Level 2		Level 3		Total
Assets:
Government bonds	$	427	$	-	$	-	$	427
Corporate bonds		-		237		-		237
Equity fund		226		-		-		226
Foreign currency derivative contracts		-		156		-		156

Total financial assets	$	653	$	393	$	-	$	1,046

Liabilities:
Contingent consideration	$	-	$	-	$	1,942	$	1,942

Total financials liabilities	$	-	$	-	$	1,942	$	1,942

	June 30, 2013
	Fair value measurements using input type
	Level 1		Level 2		Level 3		Total
Assets:
Government bonds	$	418	$	-	$	-	$	418
Corporate bonds		-		221		-		221
Equity fund		227		-		-		227
Foreign currency derivative contracts		-		118		-		118

Total financial assets	$	645	$	339	$	-	$	984

Liabilities:
Contingent and deferred consideration	$	-	$	-	$	5,607	$	5,607

Total financials liabilities	$	-	$	-	$	5,607	$	5,607

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

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