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Fair Value Measurements
6 Months Ended
Jun. 30, 2013
Fair Value Measurements [Abstract]  
Fair Value Measurements

2. Fair Value Measurements

The Company measures certain financial assets at fair value on a recurring basis. The fair value of these financial assets was determined based on three levels of inputs, of which, the first two levels are considered observable and the last unobservable. The three levels of inputs that may be used to measure fair value are as follows:

Level 1 – Quoted prices in active markets for identical assets or liabilities that the Company has the ability to access.

Level 2 – Observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities; or the fair value is determined through the use of models or other valuation methodologies.

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. The inputs to determine fair value require significant management judgment or estimation.

Assets and liabilities measured at fair value on a recurring basis consist of cash equivalents, marketable securities and debt security investments. As of June 30, 2013 and December 31, 2012, the reported fair value of marketable securities, using Level 1 inputs, was $592,000 and $600,000, respectively. Marketable securities are included in other assets on the Company’s unaudited condensed consolidated balance sheets. As of June 30, 2013, the Company no longer held debt security investments included in restricted cash. During March 2013, the Company sold the remainder of its debt security investments to be included in cash equivalents. The reported fair value of debt security investments as of December 31, 2012, using Level 1 inputs, was $3.5 million and is included in restricted cash on the Company’s unaudited condensed consolidated balance sheets.

The Company had no cash equivalents as of June 30, 2013. As of December 31, 2012, cash equivalents consisted of $5.0 million, for which the fair value is measured using Level 1 inputs. The carrying amount of cash equivalents approximates fair value.

At June 30, 2013, the Company reported $1.7 million of variable interest rate long-term debt for which the fair value is measured using Level 2 inputs. There was no long-term debt outstanding as of December 31, 2012. The fair value of long-term debt is based on estimates made by investment bankers based on the fair value of the Company’s variable rate long-term debt. For variable rate debt, interest rate changes do not impact financial position, operations or cash flows.