Astronics Corporation Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Fair Value (Tables)

Fair Value (Tables)

9 Months Ended

Sep. 27, 2014

Financial Assets and Liabilities Carried at Fair Value Measured on Recurring Basis

A financial asset or liability’s classification within the hierarchy is determined based on the lowest level input that is significant to the fair value measurement. The following table provides the financial assets and liabilities carried at fair value measured on a recurring basis as of September 27, 2014 and December 31, 2013:


(In thousands)	Classification	Total			Level 1		Level 2			Level 3

Interest rate swaps
September 27, 2014	Current Liabilities	$	(77	)	$	—	$	(77	)	$	—

December 31, 2013	Other Liabilities		(107	)		—		(107	)		—

Acquisition contingent consideration
September 27, 2014	Current Liabilities	$	(2,280	)	$	—	$	—		$	(2,280	)
December 31, 2013	Current Liabilities		(137	)		—		—			(137	)

September 27, 2014	Other Liabilities	$	(3,784	)	$	—	$	—		$	(3,784	)
December 31, 2013	Other Liabilities		(5,709	)		—		—			(5,709	)

Calculation of Additional Purchase Consideration (Earn Out)

The calculation of additional purchase consideration (“Earn Out”) related to the acquisition of AeroSat is as follows:


	AeroSat Revenue	Earn Out Formula
2014	<$30 million	No Earn Out
	>$30 million < $50 million	(AeroSat Revenue X 15%) x ((AeroSat Revenue-$30 million)/$20 million)
	>$50 million	AeroSat Revenue X 15%

2015	<$40 million	No Earn Out
	>$40 million < $60 million	(AeroSat Revenue X 15%) x ((AeroSat Revenue-$40 million)/$20 million)
	>$60 million	AeroSat Revenue X 15%