FAIR VALUE OF FINANCIAL INSTRUMENTS

12 Months Ended

Dec. 31, 2013

(3) FAIR VALUE OF FINANCIAL INSTRUMENTS

Assets recorded at fair value in the balance sheet as of December 31, 2013 are categorized based upon the level of judgment associated with the inputs used to measure their fair value as defined by ASC 820, Fair Value Measurements and Disclosures. We have investments available-for-sale (consisting of auction rate securities) that are considered to be Level 3 assets for which little or no market data exist and are required to be measured at fair value on a recurring basis. The fair value of our investments available-for-sale as of December 31, 2013 and December 31, 2012 was $1.3 million and $2.0 million, respectively. As of December 31, 2013 the par value of our investments available-for-sale was $1.4 million and the related temporary impairment was $72,000, based on our estimate of the related fair value using a discounted trinomial model.

In association with this estimate of fair value, we have recorded an after-tax temporary unrealized gain on our investments available-for-sale of $222,000, net of related tax effects of $119,000 in 2013, which is included in accumulated other comprehensive loss on our balance sheet. The unrealized gain includes the impact of adjusting previously recorded unrealized losses of approximately $138,000 net of related tax effects of $74,000 as of December 31, 2013 for one security, which was partially redeemed at par during 2013.

The following table reflects the activity for assets measured at fair value using Level 3 inputs for the years ended December 31:


Balance as of December 31, 2010	$	2,126
Transfers into level 3		—
Transfers out of level 3		(25	)
Purchases, sales issuances and settlements		(25	)
Unrealized losses included in accumulated loss		(123	)

Balance as of December 31, 2011		1,953
Transfers into level 3		—
Transfers out of level 3		—
Purchases, sales issuances and settlements		(50	)
Unrealized gains included in accumulated loss		134

Balance as of December 31, 2012		2,037
Transfers into level 3		—
Transfers out of level 3		—
Purchases, sales issuances and settlements		(1,090	)
Unrealized gains included in accumulated loss		341

Balance as of December 31, 2013	$	1,288

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

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