Cash Equivalents, Investment Securities Avaliable-for-Sale and Fair Value Measurments - Note 3

6 Months Ended

Jun. 30, 2012

Fair Value Disclosures

Cash Equivalents, Investment Securities Available-for-Sale and Fair Value Measurements

3. CASH EQUIVALENTS, INVESTMENT SECURITIES AVAILABLE-FOR-SALE AND FAIR VALUE MEASUREMENTS

Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability in an orderly transaction between informed 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. As a basis for considering such assumptions, the authoritative guidance establishes a three level fair value inputs hierarchy, and requires an entity to maximize the use of observable valuation inputs and minimize the use of unobservable inputs. When estimating fair values, we use market data, assumptions and risks we believe market participants would use in measuring the fair value of the asset or liability, including the risks inherent in the inputs and the valuation techniques.

At December 31, 2011, our cash equivalents and investment securities available-for-sale were comprised of money market savings accounts and equity securities. The corporate equity securities were valued using inputs and common methods with sufficient levels of transparency and observability to be classified at Level 2.