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FAIR VALUE MEASUREMENTS
 12 Months Ended
Dec. 31, 2013
FAIR VALUE MEASUREMENTS  
FAIR VALUE MEASUREMENTS
NOTE 8: FAIR VALUE MEASUREMENTS
 
The various inputs used to measure assets at fair value establish a hierarchy that distinguishes between assumptions based on market data (observable inputs) and the Company’s assumptions (unobservable inputs). The hierarchy consists of three broad levels as follows:
 
 
1.
Level 1 – Quoted market prices in active markets for identical assets or liabilities.
 
2.
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-based valuation techniques for which all significant assumptions are observable in the market or can be corroborated by observable market data for substantially the full term of the assets or liabilities.
 
3.
Level 3 – Unobservable inputs developed using the Company’s estimates and assumptions, which reflect those that market participants would use.
 
The following table summarizes the valuation of financial instruments measured at fair value on a recurring basis on the balance sheet as of December 31, 2013 and 2012:
                   
 
Fair Value Measurements at December 31, 2013 with:
  
(in thousands)
Quoted prices in
active markets for
identical assets
  
Significant other
observable inputs
  
Significant
unobservable
inputs
  
 
(Level 1)
  
(Level 2)
  
(Level 3)
  
Assets:
                  
Trading securities
   $ —     $ 6,388     $ —  
Available-for-sale securities:
                     —  
Municipal Obligations
   $ —     $ 36,132       —  
Corporate Obligations
     —       456       —  
Total
   $ —     $ 36,588     $ —  
 
   
Fair Value Measurements at December 31, 2012 with:
  
(in thousands)
  
Quoted prices in
active markets for
identical assets
    
Significant other
observable inputs
    
Significant
unobservable
inputs
  
   
(Level 1)
    
(Level 2)
    
(Level 3)
  
Assets:
                  
Trading securities
   $ —     $ 6,026     $ —  
Available-for-sale securities:
                     —  
Municipal Obligations
   $ —     $ 35,606       —  
Corporate Obligations
     —       1,317       —  
Total
   $ —     $ 36,923     $ —  
 
The Company determines the fair value of the marketable securities that are available-for-sale through quoted prices for similar instruments in active markets or quoted prices for identical or similar instruments in markets that are not active. The trading securities are comprised of the SERP assets, as described in Note 10, and are recorded primarily at their net cash surrender values, which approximates fair value, as provided by the issuing insurance company. Significant observable inputs, in addition to quoted market prices, were used to value the trading securities. As a result, the Company classified these investments as using level 2 inputs. The Company’s policy is to recognize transfers between levels at the beginning of quarterly reporting periods. For the year ended December 31, 2013 there were no significant transfers in or out of levels 1, 2 or 3.
 
The carrying amount of other financial instruments reported in the balance sheet for current assets and current liabilities approximate their fair values because of the short-term maturity of these instruments. The Company currently does not use the fair value option to measure any of its existing financial instruments and has not determined whether or not it will elect this option for financial instruments it may acquire in the future.