FAIR VALUE OF ASSETS AND LIABILITIES

9 Months Ended

Sep. 30, 2014

Fair value is defined as “the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price)”. The accounting standard establishes a consistent framework for measuring fair value and expands disclosure requirements regarding fair value measurements. This accounting standard, among other things, requires the Company to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value.

The tables below present the balances of investments measured at fair value on a recurring basis:



	September 30, 2014
	Total		Level 1		Level 2		Level 3
	(in thousands)
Assets
Cash
Money market funds	$	1,260	$	1,260	$	—

Other assets
Auction-rate security	1,066		—		—		1,066
Investment funds - Deferred compensation plan assets
Institutional money market funds	2,108		2,108		—		—
Fixed income	831		831		—		—
Marketable equity securities	3,428		3,428		—		—
Total institutional funds - Deferred compensation plan	6,367		6,367		—		—
Total other assets	7,433		6,367		—		1,066
Total	$	8,693	$	7,627	$	—	$	1,066



	December 31, 2013
	Total		Level 1		Level 2		Level 3
	(in thousands)
Assets
Cash
Money market funds	$	1,245	$	1,245	$	—	$	—

Short-term investments
Corporate equity securities	2,181		2,181		—		—

Other assets
Auction-rate security	1,066		—		—		1,066
Investment funds - Deferred compensation plan assets
Institutional money market funds	2,225		2,225		—		—
Fixed income	338		338		—		—
Marketable equity securities	3,279		3,279		—		—
Total institutional funds - Deferred compensation plan	5,842		5,842		—		—
Total other assets	6,908		5,842		—		1,066
Total	$	10,334	$	9,268	$	—	$	1,066

The Company’s investments, with the exception of its auction-rate security, are classified within Level 1 of the fair value hierarchy because they are valued using quoted market prices, or broker or dealer quotations. The types of instruments valued based on quoted market prices in active markets include most U.S. government and agency securities and money market securities. Such instruments are generally classified within Level 1 of the fair value hierarchy.

Auction-rate securities are classified within Level 3 because significant assumptions for such securities are not observable in the market. The total amount of assets measured using Level 3 valuation methodologies represented less than 1% of the Company's total assets as of September 30, 2014.

There were no changes in Level 3 assets measured at fair value on a recurring basis for the three and nine months ended September 30, 2014. There were no transfers between Level 1 and 2 hierarchies for the three and nine months ended September 30, 2014 and the year ended December 31, 2013.

- 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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