v2.4.0.6
Fair value measurement
 3 Months Ended
Mar. 31, 2012
Fair value measurement  
Fair value measurement

5. Fair value measurement

 

ASC 820, Fair Value Measurements and Disclosures, establishes a three-tiered hierarchy that draws a distinction between market participant assumptions based on (i) quoted prices (unadjusted) in active markets for identical assets and liabilities (Level 1); (ii) inputs other than quoted prices in active markets that are observable either directly or indirectly (Level 2); and (iii) unobservable inputs that require us  to use present value and other valuation techniques in the determination of fair value (Level 3). The following table sets forth our financial assets that are measured at fair value on a recurring basis:

 

At March 31, 2012

 

Level 1

 

Level 2

 

Total

 

 

 

 

 

 

 

 

 

Assets:

 

 

 

 

 

 

 

Cash equivalents

 

$

41,123

 

$

—

 

$

41,123

 

Marketable securities available-for-sale

 

—

 

41,170

 

41,170

 

Restricted cash

 

465

 

—

 

465

 

Total assets

 

$

41,558

 

$

41,170

 

$

82,758

 

 

At December 31, 2011

 

Level 1

 

Level 2

 

Total

 

 

 

 

 

 

 

 

 

Assets:

 

 

 

 

 

 

 

Cash equivalents

 

$

81,082

 

$

—

 

$

81,082

 

Marketable securities available-for-sale

 

—

 

—

 

—

 

Restricted cash

 

465

 

—

 

465

 

Total assets

 

$

81,547

 

$

—

 

$

81,547

 

 

Our marketable securities available-for-sale utilize Level 2 inputs and consist primarily of corporate securities which include commercial paper and corporate debt instruments including notes issued by foreign or domestic corporations which pay in U.S. dollars and carry a rating of A or better. The Company has evaluated the various types of securities in its investment portfolio to determine an appropriate fair value hierarchy level based upon trading activity and the observability of market inputs.  Due to variations in trading volumes and the lack of quoted market prices in active markets, our fixed maturities are classified as Level 2 securities. The fair value of our fixed maturity marketable securities available-for-sale is derived through the use of a third party pricing source or recent reported trades for identical or similar securities, making adjustments through the reporting date based upon available market observable data.