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Fair Value Measurement
 12 Months Ended
Dec. 31, 2011
Fair Value Measurement [Abstract]  
Fair Value Measurement
3. Fair Value Measurement

The Company has determined that its marketable securities should be presented at their fair value. Fair value is 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.

Factors used in determining the fair value of our financial assets and liabilities are summarized into three broad categories:

 

  •  

Level 1—quoted prices in active markets for identical securities;

 

  •  

Level 2—other significant observable inputs, including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.; and

 

  •  

Level 3—significant unobservable inputs, including our own assumptions in determining fair value.

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

In determining the fair value of our financial assets, the Company predominately uses the market approach. In determining the fair value of all its municipal bonds, corporate bonds, and variable rate demand notes classified as Level 2, the Company utilizes the non-binding quotes provided by our three investment brokers. We receive one non-binding broker quote for each financial asset as of the balance sheet date. To value the Level 2 assets, our investment brokers use proprietary multi-dimensional pricing models that include a variety of inputs, including quoted prices for identical or similar assets in active markets, quoted prices for identical or similar assets in markets that are not active, interest rates and yield curves observable at commonly quoted intervals, volatilities, prepayment speeds, loss severities, credit risks and default rates that are observable at commonly quoted intervals. There were no assets or liabilities where Level 3 valuation techniques were used and there were no assets and liabilities measured at fair value on a non-recurring basis.

Marketable securities consist of the following (in thousands):

 

                                                         
    December 31, 2011     December 31, 2010        
    Cost     Gross
Unrealized
Gains
(Losses)		     Recorded
Basis		     Cost     Gross
Unrealized
Gains
(Losses)		     Recorded
Basis		     Fair
Value
Category		  

Current:

                                                        

Trading:

                                                        

Equity securities

   $ 0      $ 0      $ 0      $ 349      $ 21      $ 370        1   

Available-for-sale:

                                                        

Municipal bonds

     5,804        8        5,812        22,997        (32 )      22,965        2   

Corporate bonds

     11,070        (4 )      11,066        861        15        876        2   

Variable rate demand notes

     0        0        0        300        0        300        2   
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

          
    $ 16,874      $ 4      $ 16,878      $ 24,507      $ 4      $ 24,511           
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

          

Long term:

                                                        

Available-for-sale:

                                                        

Corporate bonds

   $ 14,971      $ (33 )    $ 14,938      $ 5,513      $ (39 )    $ 5,474        2   

Held-to-maturity:

                                                        

Corporate bonds

     457        0        457        447        0        447        2   
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

          
    $ 15,428      $ (33 )    $ 15,395      $ 5,960      $ (39 )    $ 5,921           
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

          

The Company's restricted marketable securities component of restricted marketable securities and workers' compensation deposits consists of the following (in thousands):

 

                                                         
    December 31, 2011     December 31, 2010        
    Cost     Gross
Unrealized
Gains
(Losses)		     Recorded
Basis		     Cost     Gross
Unrealized
Gains
(Losses)		     Recorded
Basis		     Fair
Value
Category		  

Available-for-sale:

                                                        

Municipal bonds

   $ 5,580      $ 17      $ 5,597      $ 5,147      $ 0      $ 5,147        2   

Corporate bonds

     148        (1 )      147        323        0        323        2   

U.S. treasuries

     1,567        0        1,567        1,567        0        1,567        1   
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

          
    $ 7,295      $ 16      $ 7,311      $ 7,037      $ 0      $ 7,037