part iI / item 8 Note 9—Fair Value Measurements Note 11 – Commitments and Contingencies Leases Note 10 – Derivative Instruments and Hedging Activities 51 Level 2: Quoted prices for identical or similar assets and liabilities in markets that are not active or observable inputs other than quoted prices in active markets for identical or similar assets and liabilities. Level 2 assets and liabilities include over-the-counter derivatives, principally forward foreign exchange contracts, whose value is determined using pricing models with inputs that are gen- erally based on published foreign exchange rates and exchange traded prices, adjusted for other specific inputs that are primarily observable in the market or can be derived principally from or corroborated by observable market data. Level 3: Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Accounting standards define 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. Fair value measurements are to be considered from the perspective of a market participant that holds the asset or owes the liability. The standards also establish a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standards describe three levels of inputs that may be used to measure fair value: Level 1: Quoted prices in active markets for identical or similar assets and liabilities. The following table summarizes assets and liabilities measured at fair value on a recurring basis at the dates indicated: ValuationTechnique— The Company’s derivative assets and liabilities include foreign exchange contract derivatives that are measured at fair value using internal models based on observable market inputs such as forward rates and interest rates. Based on these inputs, the derivatives are classified within Level 2 of the valuation hierarchy. The carrying value of the Company’s financial assets and liabilities, including cash and cash equivalents, accounts receivable, accounts payable and short-term loans payable approximate fair value, without being discounted, due to the short periods during which these amounts are outstanding. Long-term debt rates currently available to the Company for debt with similar terms and remaining maturities are used to estimate the fair value for debt issues that are not quoted on an exchange. The estimated fair value of long-term debt is measured using Level 2 inputs and was $431.1 million and $419.0 million at December 31, 2012 and 2011, respectively. $178 million and $155 million as of December 31, 2012 and December 31, 2011, respectively. The settlement of derivative con- tracts for the years ended December 31, 2012, 2011 and 2010 resulted in net cash outflows of $13.0 million, $4.7 million and $10.2 million, respectively and is reported with “Total provided by operating activities” on the Consolidated Statements of Cash Flows. The Company leases certain facilities, vehicles and equipment. Future minimum payments, by year and in the aggregate, under leases with initial or remaining terms of one year or more consisted of the following at December 31, 2012: The Company is exposed to certain risks related to its ongoing business operations, including market risks related to fluctuation in currency exchange. The Company uses foreign exchange con- tracts to manage the risk of certain cross-currency business rela- tionships to minimize the impact of currency exchange fluctuations on the Company’s earnings and cash flows. The Company does not hold or issue derivative financial instruments for trading or spec- ulative purposes. As of December 31, 2012, the foreign exchange contracts designated as hedging instruments did not have a material impact on the Company’s statement of operations, balance sheet or cash flows. Foreign exchange contracts not designated as hedging instruments which primarily pertain to foreign exchange fluctuation risk of intercompany positions, had a notional value of (in thousands) Operating Leases Minimum Sublease Income Net 2013 $14,931 $309 $14,622 2014 11,202 139 11,063 2015 7,810 — 7,810 2016 6,487 — 6,487 2017 3,626 — 3,626 Thereafter 5,557 — 5,557 Total minimum lease payments $49,613 $448 $49,165 December 31, 2012 December 31, 2011 (in thousands) Quoted Prices in Active Markets for Identical Assets Level 1 Significant Other Observable Inputs Level 2 Significant Unobservable Inputs Level 3 Total Fair Value Quoted Prices in Active Markets for Identical Assets Level 1 Significant Other Observable Inputs Level 2 Significant Unobservable Inputs Level 3 Total Fair Value Assets: Derivatives — foreign exchange contracts $— $2,617 $— $2,617 $— $ 290 $— $ 290 Liabilities: Derivatives — foreign exchange contracts $— $ 172 $— $ 172 $— $6,060 $— $6,060