Note 7 - Fair Value Measurements

12 Months Ended

Dec. 31, 2016

Notes to Financial Statements

Fair Value Disclosures [Text Block]

Note

7

—

Fair Value Measurements

We follow the authoritative guidance for fair value measurements and disclosures that, among other things, defines fair value, establishes a consistent framework for measuring fair value, and expands disclosure for each major asset and liability category measured at fair value on either a recurring or nonrecurring basis. Fair value is defined as an exit price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability.

Level

1

— Quoted prices (unadjusted) in active markets for identical assets or liabilities;

Level

2

— Inputs other than quoted prices included within Level

1

that are either directly or indirectly observable; and

Level

3

— Unobservable inputs in which little or no market activity exists, therefore requiring an entity to develop its own estimates of assumptions that market participants would use in pricing an asset or liability.

Fair Value of Financial Instruments

For our investments in available-for-sale securities, if quoted prices in active markets for identical investments are not available to determine fair value (Level

1),

then we use quoted prices for similar assets or inputs other than the quoted prices that are observable either directly or indirectly (Level

2).

The investments included in Level

2

consist primarily of municipal, corporate, and agency obligations. The asset also included in Level

2

consists of the premium paid for foreign currency put options. The fair value of this asset was determined based on the time value of the options as it was determined there was no intrinsic value of the options.

The fair value of financial assets and liabilities measured on a recurring basis is as follows (in thousands):

			Fair Value Measurement at Reporting Date Using
	December 31, 2016		Level 1 Inputs		Level 2 Inputs		Level 3 Inputs
Assets:
Available-for-sale securities	$	39,073	$	—	$	39,073	$	—
Total assets	$	39,073	$	—	$	39,073	$	—

			Fair Value Measurement at Reporting Date Using
	December 31, 2015		Level 1 Inputs		Level 2 Inputs		Level 3 Inputs
Assets:
Available-for-sale securities	$	257	$	—	$	257	$	—
Foreign currency put options		33		—		33		—
Total assets	$	290	$	—	$	290	$	—

The reconciliation of the beginning and ending balances for financial assets and liabilities measured on a recurring basis using significant unobservable inputs (Level

3)

for the years ended

December

31,

2016,

2015,

and

2014

is as follows (in thousands):

	Contingent Consideration
Balance, December 31, 2013	$	1,524
Net gain on settlement		(149	)
Settlement payment		(1,375	)
Balance, December 31, 2014	$	—
Loss due to change in fair value		—
Balance, December 31, 2015	$	—
Loss due to change in fair value		—
Balance, December 31, 2016	$	—