Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2018

Assets and Liabilities Measured at Fair Value on Recurring Basis

Assets and liabilities measured at fair value on a recurring basis included the following as of September 30, 2018 (in thousands):


	Using
	Quoted Prices in Active Markets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)			Total Fair Value as of September 30, 2018
Cash equivalents:
Money market funds	$	9,542	$	—	$	—		$	9,542
Long-term investments:
Failed Auction Security		—		—		2,613			2,613
Liabilities:
Contingent consideration obligations		—		—		(470	)		(470	)

Assets and liabilities measured at fair value on a recurring basis included the following as of December 31, 2017 (in thousands):


	Using
	Quoted Prices in Active Markets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)			Total Fair Value as of December 31, 2017
Cash equivalents:
Money market funds	$	9,279	$	—	$	—		$	9,279
Long-term investments:
Failed Auction Security		—		—		2,525			2,525
Liabilities:
Contingent consideration obligations		—		—		(678	)		(678	)

Quantitative Information about Level 3 Fair Value Measurements

Quantitative information about Level 3 fair value measurements as of September 30, 2018 is as follows (dollars in thousands):


	Fair Value		Valuation Technique		Unobservable Input	Weighted Average
Failed Auction Security	$	2,613		Discounted cash flow	Cumulative probability of earning the maximum rate until maturity		0.06	%
					Cumulative probability of principal return prior to maturity		94.80	%
					Cumulative probability of default		5.15	%
					Liquidity risk premium		5.00	%
					Recovery rate in default		40.00	%

Change in Estimated Fair Values Calculated for Investment Valued on Recurring Basis Utilizing Level 3 Inputs

The change in the estimated fair value calculated for the investment valued on a recurring basis utilizing Level 3 inputs (i.e., the Failed Auction Security) for the nine months ended September 30, 2018 was as follows (in thousands):


Balance at the beginning of the period	$	2,525
Credit gain on available-for-sale securities included in Other income (expense), net		6
Gain included in Other comprehensive income		82

Balance at the end of the period	$	2,613

Change in Estimated Fair Value Calculated for Liabilities Valued on Recurring Basis Utilizing Level 3 Inputs

The change in the estimated fair value calculated for the liabilities valued on a recurring basis utilizing Level 3 inputs (i.e., the Contingent consideration obligations) for the nine months ended September 30, 2018 was as follows (in thousands):


Balance at the beginning of the period	$	678
Payments		(208	)

Balance at the end of the period	$	470