Quarterly report pursuant to Section 13 or 15(d)

Fair Value Measurements

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Fair Value Measurements
 6 Months Ended
Jun. 30, 2015
Fair Value Measurements  
Fair Value Measurements

F. FAIR VALUE MEASUREMENTS

 

The fair value measurement standard defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (referred to as an “exit price”). Authoritative guidance on fair value measurements and disclosures clarifies that a fair value measurement for a liability should reflect the entity’s non-performance risk. In addition, a fair value hierarchy is established that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted market prices in active markets for identical assets and liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements).

 

Fair Value on Recurring Basis

 

The carrying values of cash and cash equivalents, receivables, net and accounts payables are considered to be representative of their respective fair values due to the short-term nature of these instruments.

 

Fair Value on Non-Recurring Basis

 

Fair value measurements were applied with respect to our non-financial liabilities measured on a non-recurring basis, which consists of our current portion of long-term debt and long-term debt.  The carrying value of our long-term debt approximates the fair value due to the debt being issued on June 30, 2015. 

 

During the periods presented, there were no transfers between fair value hierarchical levels.