Fair Value Measurements

9 Months Ended

Sep. 30, 2014

The fair value hierarchy of the Company’s financial assets carried at fair value and measured on a recurring basis was as follows (in thousands):



			Fair value measurements at the reporting date using
	September 30, 2014		Quoted prices in active markets using identical assets (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)
Cash equivalents:
Money market and other funds	$	14,012	$	—	$	14,012	$	—
Commercial paper	5,200		—		5,200		—
Time deposits	1,246		—		1,246		—
Corporate bonds	1,206		—		1,206		—
Taxable municipal bonds	5,675		—		5,675		—
Total cash equivalents	27,339		—		27,339		—
Available-for-sale investments:
Debt securities:
U.S. government securities	84,693		—		84,693		—
International government securities	6,619		—		6,619		—
Commercial paper	18,092		—		18,092		—
Time deposits	29,618		—		29,618		—
Corporate bonds	1,533		—		1,533		—
Taxable municipal bonds	75,054		—		75,054		—
Total debt securities	215,609		—		215,609		—
Equity securities	4,591		4,591		—		—
Total available-for-sale investments	220,200		4,591		215,609		—
Total assets at fair value	$	247,539	$	4,591	$	242,948	$	—

			Fair value measurements at the reporting date using
	December 31, 2013		Quoted prices in active markets using identical assets (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)
Cash equivalents:
U.S. government securities	$	6,400	$	—	$	6,400	$	—
Money market and other funds	9,391		—		9,391		—
Commercial paper	17,999		—		17,999		—
Time deposits	499		—		499		—
Taxable municipal bonds	21,215		—		21,215		—
Total cash equivalents	55,504		—		55,504		—
Available-for-sale investments:
U.S. government securities	58,114		—		58,114		—
Commercial paper	14,496		—		14,496		—
Time deposits	9,880		—		9,880		—
Taxable municipal bonds	120,990		—		120,990		—
Total available-for-sale investments	203,480		—		203,480		—
Total assets at fair value	$	258,984	$	—	$	258,984	$	—

The Company also had financial instruments that were not measured at fair value. See “Note 6: Debt” for details.

The contractual maturities of the debt securities classified as available-for-sale at September 30, 2014 and December 31, 2013 were less than one year.

The cost and fair value of available-for-sale investments were as follows (in thousands):



		Amortized cost		Gross unrealized gains		Gross unrealized losses			Fair value
Available-for-sale investments as of	September 30, 2014
Debt securities		$	215,607	$	26	$	(24	)	$	215,609
Equity securities		4,424		167		—			4,591
Total		$	220,031	$	193	$	(24	)	$	220,200
Available-for-sale investments as of	December 31, 2013	$	203,479	$	24	$	(23	)	$	203,480

Available-for-sale investments as of December 31, 2013 included only debt securities.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

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