Fair Value Measurements (Notes)

12 Months Ended

Dec. 31, 2015

Fair Value Disclosures [Abstract]

Fair Value Measurements

FAIR VALUE MEASUREMENTS

Factors used in determining the fair value of financial assets and liabilities are summarized into three broad categories:

• Level 1 - observable inputs such as quoted prices (unadjusted) in active liquid markets for identical securities as of the reporting date;

• Level 2 - other significant directly or indirectly observable inputs, including quoted prices for similar securities, interest rates, prepayment speeds and credit risk; or observable market prices in markets with insufficient volume and/or infrequent transactions; and

• Level 3 - significant inputs that are generally unobservable inputs for which there is little or no market data available, including our own assumptions in determining fair value.

Assets measured at fair value on a recurring basis as of December 31, 2015 and 2014 were as follows (in thousands):

	December 31, 2015
	Level 1		Level 2		Level 3		Total
Cash Equivalents
Money market funds	$	1	$	—	$	—	$	1
Corporate bonds	—		733		—		733
Total Cash Equivalents	1		733		—		734
Available-for-Sale Securities
Certificates of deposit(1)	—		25,234		—		25,234
Corporate bonds	—		4,764		—		4,764
Total Available-for-Sale Securities	—		29,998		—		29,998
Total assets measured at fair value	$	1	$	30,731	$	—	$	30,732

	December 31, 2014
	Level 1		Level 2		Level 3		Total
Cash Equivalents
Money market funds	$	2,591	$	—	$	—	$	2,591
Certificates of deposit(1)	—		980		—		980
Commercial paper	—		12,497		—		12,497
Variable-rate demand notes	—		8,000		—		8,000
Total Cash Equivalents	2,591		21,477		—		24,068
Available-for-Sale Securities
Certificates of deposit(1)	—		14,202		—		14,202
Corporate bonds	—		12,782		—		12,782
Total Available-for-Sale Securities	—		26,984		—		26,984
Total assets measured at fair value	$	2,591	$	48,461	$	—	$	51,052

⁽¹⁾ All certificates of deposit are within current FDIC insurance limits.

We recognize transfers between levels at the actual date of the event or change in circumstance that caused the transfer.  There were no transfers between levels during the year ended December 31, 2015. We did not have any changes to our valuation techniques during the year ended December 31, 2015.

We classify our marketable securities as available-for-sale and, accordingly, record them at fair value. Level 1 investment valuations are obtained from real-time quotes for transactions in active exchange markets involving identical assets. Level 2 investment valuations are obtained from inputs, other than quoted market prices in active markets, that are directly or indirectly observable in the marketplace and quoted prices in markets with limited volume or infrequent transactions. The factors or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. Unrealized holding gains and losses are excluded from earnings and are reported net of tax in other comprehensive income until realized. During the years ended December 31, 2015 and 2014, we did not record any other-than-temporary impairments on our financial assets required to be measured at fair value on a nonrecurring basis.

We recognize or disclose the fair value of certain assets, such as non-financial assets, primarily property, plant and equipment, goodwill, other intangible assets and certain other long-lived assets in connection with impairment evaluations. All of our nonrecurring valuations use significant unobservable inputs and therefore fall under Level 3 of the fair value hierarchy. Other than our annual goodwill and indefinite-lived trade names impairment valuations effective as of October 1, 2015 and 2014, we did not perform any valuations on assets or liabilities that are valued at fair value on a nonrecurring basis.

The carrying value of our term loan approximates its fair value and falls under Level 2 of the fair value hierarchy, as the interest rate is variable and based on current market rates.