11. Fair Value of Financial Instruments
Cash and Equivalents, Receivables, Other Current Assets,
Accounts Payable, Accrued and Other Current Liabilities
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The carrying amounts of these items approximated
fair value. Fair value is defined 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. To increase the comparability of fair value measures, Financial
Accounting Standards Board (FASB) ASC Topic 820-10-35 establishes a fair value hierarchy that prioritizes the inputs
to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active
markets for identical assets or liabilities (level 1 measurement) and the lowest priority to unobservable inputs (level 3 measurements). |
Level 1 - Valuations
based on quoted prices for identical assets and liabilities in active markets.
Level 2 - Valuations
based on observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities
in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, or other inputs
that are observable or can be corroborated by observable market data.
Level 3 - Valuations
based on unobservable inputs reflecting our own assumptions, consistent with reasonably available assumptions made by other market
participants. These valuations require significant judgment.
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The application of the three levels of the fair value hierarchy under Topic 820-10-35 to our assets and liabilities are described
below: |
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Fiscal 2014 Fair Value Measurements |
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Level 1 |
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Level 2 |
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Level 3 |
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Total Fair Value |
Assets |
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Other assets |
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$ |
- |
|
$ |
- |
|
$ |
- |
|
$ |
- |
|
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Total |
|
$ |
- |
|
$ |
- |
|
$ |
- |
|
$ |
- |
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Liabilities |
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Short and long-term debt |
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$ |
149,016 |
|
$ |
- |
|
$ |
- |
|
$ |
149,016 |
|
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Total |
|
$ |
149,016 |
|
$ |
- |
|
$ |
- |
|
$ |
149,016 |
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Fiscal 2013 Fair Value Measurements |
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Level 1 |
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Level 2 |
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Level 3 |
|
Total Fair Value |
Assets |
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|
|
|
|
|
|
|
|
|
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Other assets |
|
$ |
- |
|
$ |
- |
|
$ |
- |
|
$ |
- |
|
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Total |
|
$ |
- |
|
$ |
- |
|
$ |
- |
|
$ |
- |
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Liabilities |
|
|
|
|
|
|
|
|
|
|
|
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Short and long-term debt |
|
$ |
152,324 |
|
$ |
- |
|
$ |
- |
|
$ |
152,324 |
|
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Total |
|
$ |
152,324 |
|
$ |
- |
|
$ |
- |
|
$ |
152,324 |
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