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Investments and Fair Value Measurements

3 Months Ended

Mar. 31, 2013

Investments and Fair Value Measurements [Abstract]

3. Investments and Fair Value Measurements

The following table is a summary of the Company’s investments:


	March 31, 2013		December 31, 2012
	Held-to- Maturity		Held-to- Maturity
Federal agency debt instruments	$	10,668	$	11,036

The following table summarizes unrealized gains, losses, and fair value of investments:


	March 31, 2013			December 31, 2012
	Held-to- Maturity			Held-to- Maturity
Cost/amortized cost	$	10,668		$	11,036
Gross unrealized gains		48			61
Gross unrealized losses		(163	)		(157	)

Fair value	$	10,553		$	10,940

The following table sets forth the maturity profile of investments:


	March 31, 2013		December 31, 2012
	Held-to- Maturity		Held-to- Maturity
Due within one year	$	—	$	—
Due one year through five years		—		—
Due five years through ten years		714		727
Due over ten years		9,954		10,309

Total	$	10,668	$	11,036

Fair Value Measurement

Under the accounting for fair value measurements and disclosures, fair value is defined as the price that would be received to sell an asset or paid to transfer a liability, or the exit price, in an orderly transaction between market participants at the measurement date. The accounting guidance establishes a hierarchy of valuation techniques based on whether the inputs to those valuation techniques are observable or unobservable. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect the Company’s market assumptions.

These three types of inputs create the following fair value hierarchy:

Level 1—Quoted prices for identical instruments in active markets.

Level 2—Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations whose inputs are observable or whose significant value drivers are observable.

Level 3—Instruments whose significant value drivers are unobservable.

This hierarchy requires the use of observable market data when available. The Company’s held-to-maturity securities are categorized as Level 1. The amortized cost of the held-to-maturity securities approximates fair value. The Company does not intend to sell its investments held-to maturity before the recovery of their amortized cost bases which may be at maturity.

Some of our financial instruments are not measured at fair value on a recurring basis but are recorded at amounts that approximate fair value due to their liquid or short-term nature. Such financial assets and financial liabilities are categorized as Level 3.