FAIR VALUE MEASUREMENTS

9 Months Ended

Sep. 30, 2019

12. 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:

Level 1 – Quoted market prices in active markets for identical assets or liabilities.

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.

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, 2019 and December 31, 2018:


	Fair Value Measurements at September 30, 2019 with:
			Quoted prices in		Significant
			active markets		other		Significant
			for		observable		unobservable
(in thousands)	Total		identical assets		inputs		inputs
			(Level 1)		(Level 2)		(Level 3)
Assets:
Available-for-sale debt securities:
Municipal Obligations	$	—	$	—	$	—	$	—
Corporate Obligations		—		—		—		—
	$	—	$	—	$	—	$	—
Investments measured at Net Asset Value - Trading securities	$	6,323


	Fair Value Measurements at December 31, 2018 with:

			Quoted prices in		Significant
			active markets		other		Significant
			for		observable		unobservable
(in thousands)	Total		identical assets		inputs		inputs
			(Level 1)		(Level 2)		(Level 3)
Assets:
Available-for-sale debt securities:
Municipal Obligations	$	1,490	$	—	$	1,490	$	—
Corporate Obligations		6,175		—		6,175		—
	$	7,665	$	—	$	7,665	$	—
Investments measured at Net Asset Value - Trading securities	$	5,518

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.

- 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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