XML 26 R8.htm IDEA: XBRL DOCUMENT v2.4.0.8
Fair value
 6 Months Ended
Jun. 30, 2013
Fair value  
Fair value

3.                                      Fair value

 

We use a valuation hierarchy for disclosure of the inputs used to measure fair value. This hierarchy prioritizes the inputs into three broad levels. Level 1 inputs, which are  considered the highest level inputs, are quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2 inputs are quoted prices for similar assets and liabilities in active markets or inputs that are observable for the asset or liability, either directly or indirectly through market corroboration, for substantially the full term of the financial instrument. Level 3 inputs are unobservable inputs based on our assumptions used to measure assets and liabilities at fair value. For fixed income securities, we reference pricing data supplied by our custodial agent and nationally known pricing vendors, using a variety of daily data sources, largely readily-available market data and broker quotes. The prices provided by third party pricing services are validated by reviewing their pricing methods and obtaining market values from other pricing sources. After completing these validation procedures, we did not adjust or override any fair value measurements provided by the pricing services as of June 30, 2013 or December 31, 2012.

 

The following table provides the assets carried at fair value measured on a recurring basis as of June 30, 2013:

 

 

 

Level 1

 

Level 2

 

 

 

(in thousands)

 

Assets:

 

 

 

 

 

Cash and money market funds

 

$

28,193

 

$

—

 

Corporate obligations (including commercial paper)

 

—

 

26,152

 

 

 

 

 

 

 

Total

 

$

28,193

 

$

26,152

 

 

There have been no changes to the valuation methods during the three and six months ended June 30, 2013. There were no transfers of assets or liabilities between Level 1 and Level 2 during the three and six months ended June 30, 2013. We had no short-term investments that were classified as Level 3 at any point during the three and six months ended June 30, 2013 or during the year ended December 31, 2012.

 

The carrying amounts reflected in the consolidated balance sheets for prepaid expenses and other current assets, other assets, accounts payable and accrued expenses approximate fair value due to their short term maturities.