Fair Value Disclosures [Text Block] |
11. FAIR VALUE MEASUREMENTS
The following tables summarize the fair value measurement of the financial assets (in thousands):
|
|
Fair Value Measurement at June 30, 2019 |
|
|
|
Total |
|
|
Level 1 |
|
|
Level 2 |
|
|
Level 3 |
|
Money market funds |
|
$ |
41,820 |
|
|
$ |
41,820 |
|
|
$ |
- |
|
|
$ |
- |
|
Corporate debt securities |
|
|
135,548 |
|
|
|
- |
|
|
|
135,548 |
|
|
|
- |
|
U.S. treasuries and government agency bonds |
|
|
32,311 |
|
|
|
- |
|
|
|
32,311 |
|
|
|
- |
|
Certificates of deposit |
|
|
1,600 |
|
|
|
- |
|
|
|
1,600 |
|
|
|
- |
|
Auction-rate securities backed by student-loan notes |
|
|
3,215 |
|
|
|
- |
|
|
|
- |
|
|
|
3,215 |
|
Mutual funds and money market funds under deferred compensation plan |
|
|
21,317 |
|
|
|
21,317 |
|
|
|
- |
|
|
|
- |
|
Total |
|
$ |
235,811 |
|
|
$ |
63,137 |
|
|
$ |
169,459 |
|
|
$ |
3,215 |
|
|
|
Fair Value Measurement at December 31, 2018 |
|
|
|
Total |
|
|
Level 1 |
|
|
Level 2 |
|
|
Level 3 |
|
Money market funds |
|
$ |
41,135 |
|
|
$ |
41,135 |
|
|
$ |
- |
|
|
$ |
- |
|
Corporate debt securities |
|
|
170,909 |
|
|
|
- |
|
|
|
170,909 |
|
|
|
- |
|
U.S. treasuries and government agency bonds |
|
|
32,068 |
|
|
|
- |
|
|
|
32,068 |
|
|
|
- |
|
Certificates of deposit |
|
|
1,600 |
|
|
|
- |
|
|
|
1,600 |
|
|
|
- |
|
Auction-rate securities backed by student-loan notes |
|
|
3,241 |
|
|
|
- |
|
|
|
- |
|
|
|
3,241 |
|
Mutual funds and money market funds under deferred compensation plan |
|
|
18,867 |
|
|
|
18,867 |
|
|
|
- |
|
|
|
- |
|
Total |
|
$ |
267,820 |
|
|
$ |
60,002 |
|
|
$ |
204,577 |
|
|
$ |
3,241 |
|
● |
Level 1—includes instruments with quoted prices in active markets for identical assets. |
● |
Level 2—includes instruments for which the valuations are based upon quoted market prices in active markets involving similar assets or inputs other than quoted prices that are observable for the assets. The market inputs used to value these instruments generally consist of market yields, recently executed transactions, broker/dealer quotes or alternative pricing sources with reasonable levels of price transparency. Pricing sources may include industry standard data providers, security master files from large financial institutions, and other third-party sources used to determine a daily market value. |
● |
Level 3—includes instruments for which the valuations are based on inputs that are unobservable and significant to the overall fair value measurement. |
The Company’s level 3 assets consist of government-backed student loan auction-rate securities. The following table provides a rollforward of the fair value of the auction-rate securities (in thousands):
Balance at January 1, 2019 |
|
$ |
3,241 |
|
Change in unrealized gain included in other comprehensive income |
|
|
49 |
|
Sale and settlement at par |
|
|
(75 |
) |
Balance at June 30, 2019 |
|
$ |
3,215 |
|
The Company determined the fair value of the auction-rate securities using a discounted cash flow model with the following assumptions:
|
|
June 30, |
|
|
December 31, |
|
|
|
2019 |
|
|
2018 |
|
Time-to-liquidity (in years) |
|
2 |
- |
3 |
|
|
2 |
- |
3 |
|
Discount rate |
|
4.1% |
- |
9.4% |
|
|
4.9% |
- |
10.1% |
|
|