Fair Value Accounting (Tables)

9 Months Ended

Sep. 30, 2015

Fair Value Measurements, Recurring and Nonrecurring

The following tables present for each of the fair value hierarchy levels, the Company's assets which are measured at fair value on a recurring basis as of September 30, 2015 and December 31, 2014 (dollars in thousands):



			Fair Value Measurements at Reporting Date Using
Description	Fair Value at September 30, 2015		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets:
Cash and cash equivalents:
Cash	1,693		$	1,693	$	—	$	—
Money market funds	2,892		2,892		—		—
Marketable securities, current:
Corporate notes and bonds	14,536		—		14,536		—
Mortgage securities	2,495		—		—		2,495
Marketable securities, non-current:
Corporate notes and bonds	6,833		—		6,833		—
Total	$	28,449	$	4,585	$	21,369	$	2,495



			Fair Value Measurements at Reporting Date Using
Description	Fair Value at December 31, 2014		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets:
Cash and cash equivalents:
Cash	$	2,701	$	2,701	$	—	$	—
Money market funds	2,595		2,595		—		—
Marketable securities, current:
Corporate notes and bonds	24,436		—		24,436		—
Commercial paper	1,998		—		1,998		—
Mortgage securities	3,381		—		—		3,381
Marketable securities, non-current:
Corporate notes and bonds	15,014		—		15,014		—
Agency securities	998		—		998		—
Total	$	51,123	$	5,296	$	42,446	$	3,381

Fair Value Inputs, Assets and Liabilities, Quantitative Information

The following table presents certain quantitative information about the significant unobservable inputs used in the fair value measurement for items measured at fair value on a recurring basis using significant unobservable inputs (Level 3):




Description	Valuation Techniques	Significant Unobservable Inputs	Range
Assets:
Mortgage securities – available-for-sale	Present value analysis	Prepayment rates	8.0% – 11.5%
		Weighted average life (years)	2.0

Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation

The following table provides a reconciliation of the beginning and ending balances for the Company's mortgage securities – available-for-sale, which are measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the nine and three months ended September 30, 2015 and 2014 (dollars in thousands):



	For the Nine Months Ended September 30,						For the Three Months Ended September 30,
	2015			2014			2015			2014
Balance, beginning of period	$	3,381		$	3,728		$	2,570		$	3,552
Increases (decreases) to mortgage securities – available-for-sale:
Accretion of income (A)	409			568			132			183
Proceeds from paydowns of securities (A)	(493		)	(484		)	(142		)	(99		)
Mark-to-market value adjustment	(802		)	(351		)	(65		)	(175		)
Net (decrease) increase to mortgage securities – available-for-sale	(886		)	(267		)	(75		)	(91		)
Balance, end of period	$	2,495		$	3,461		$	2,495		$	3,461


(A)	Cash received on mortgage securities with no cost basis was $4.2 million and $1.2 million for the nine and three months ended September 30, 2015, respectively, and $4.8 million and $1.8 million for the nine and three months ended September 30, 2014, respectively.

Fair Value, Measured on Recurring and Nonrecurring Basis, Gain (Loss) Included in Earnings

Adjustments to assets and liabilities measured at fair value on a recurring and nonrecurring basis did not have a material impact on the earnings of continuing operations for any period presented.

Fair Value, by Balance Sheet Grouping

The estimated fair values of the Company's financial instruments are as follows as of September 30, 2015 and December 31, 2014 (dollars in thousands):



	As of September 30, 2015				As of December 31, 2014
	Carrying Value		Fair Value		Carrying Value		Fair Value
Financial assets:
Restricted cash	$	692	$	552	$	597	$	450
Marketable securities	23,864		23,864		45,827		45,827
Financial liabilities:
Senior notes	$	87,798	$	16,584	$	85,937	$	15,189