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FAIR VALUE MEASUREMENTS
 9 Months Ended
Sep. 30, 2016
FAIR VALUE MEASUREMENTS  
FAIR VALUE MEASUREMENTS
11. 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 nine 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 September 30, 2016 and December 31, 2015:

 

    Fair Value Measurements at September 30, 2016 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   $ -     $ 5,543     $ -  
Available-for-sale securities:                        
Municipal obligations   $ -     $ 38,236     $ -  
Corporate obligations     -       3,463       -  
    $ -     $ 41,699     $ -  

 

    Fair Value Measurements at December 31, 2015 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   $ -     $ 6,491     $ -  
Available-for-sale securities:                        
Municipal obligations   $ -     $ 30,996     $ -  
Corporate obligations     -     3,958       -  
    $ -     $ 34,954     $ -  

 

The carrying amount of other financial instruments reported in the consolidated balance sheets for current assets and current liabilities approximate their fair values because of the short-term nature of these instruments.