SEC Filings

20-F
TOWER SEMICONDUCTOR LTD filed this Form 20-F on 04/10/2017
Entire Document
 

TOWER SEMICONDUCTOR LTD. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(dollars in thousands, except per share data)
 
NOTE 14       -      FINANCIAL INSTRUMENTS AND FAIR VALUE MEASURMENTS (cont.)

E.
Fair Value Measurements (cont.)

Level 3 Measurements :
 
Tower's Israeli Banks’ Loans (prior to full repayment of the loans in 2016): as no identical quotes were available to implement Level 1 valuation, the fair value was based on the income approach using a present value technique under which the cash flows used in the technique reflect the cash stream expected to be used to satisfy the obligation over its economic life. Tower discounted expected cash flows as forecasted each quarter using the appropriate discount rate for the applicable maturity based on the expected contractual payments, by observing yield on its traded debt and applying necessary adjustments.
 
Liabilities measured on a recurring basis using significant unobservable inputs (Level 3):

   
Tower’s Israeli
Banks Loans
(including current
maturities)
   
Others
 
As of January 1, 2016 - at fair value
 
$
74,955
   
$
--
 
principal repayment
   
(82,855
)
   
--
 
Total changes in fair value recognized in earnings
   
7,900
     
--
 
As of December 31, 2016 - at fair value
 
$
--
   
$
--
 

Recurring Fair Value Measurements Using the Indicated Inputs:
 
   
December 31,
2016
   
Quoted prices
in active
 market for
identical liability
(Level 1)
   
Significant other
observable inputs
(Level 2)
   
Significant
 unobservable
 inputs
(Level 3)
 
Cross currency swap- liability position
 
$
67
     
--
   
$
67
     
--
 
Foreign  Exchange forward and cylinders- liability position
   
976
             
976
     
--
 
   
$
1,043
   
$
--
   
$
1,043
   
$
--
 

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