Fair value disclosures

3 Months Ended

Mar. 31, 2016

Fair value disclosures

Fair value disclosures

Note 4.  Fair value disclosures

Assets and Liabilities Measured at Fair Value on a Recurring Basis

The following table presents the Company's assets that are measured at fair value on a recurring basis (in thousands):

	As of March 31, 2016								As of December 31, 2015
	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Cash equivalents and short-term investments:
Money market funds	$	11,860	$	—	$	—	$	11,860	$	11,318	$	—	$	—	$	11,318
U.S. government securities		1,751		—		—		1,751		997		—		—		997
Money market accounts		—		31,957		—		31,957		—		46,955		—		46,955
Corporate bonds		—		8,202		—		8,202		—		5,676		—		5,676
Government-sponsored enterprise obligations		—		6,298		—		6,298		—		3,284		—		3,284
Commercial papers		—		9,632		—		9,632		—		1,398		—		1,398
Sovereign government bonds		—		621		—		621		—		621		—		621
Total	$	13,611	$	56,710	$	—	$	70,321	$	12,315	$	57,934	$	—	$	70,249
Mutual funds held in Rabbi Trust, recorded in other long-term assets	$	561	$	—	$	—	$	561	$	435	$	—	$	—	$	435

The Company offers a Non-Qualified Deferred Compensation Plan (“NQDC Plan”) to a select group of its highly compensated employees.  The NQDC Plan provides participants the opportunity to defer payment of certain compensation as defined in the NQDC Plan.  A Rabbi Trust has been established to fund the NQDC Plan obligation, which was fully funded at March 31, 2016.  The assets held by the Rabbi Trust are substantially in the form of exchange traded mutual funds and are included in the Company’s other long-term assets on its condensed consolidated balance sheets as of March 31, 2016 and December 31, 2015.

The following table presents the Company's liabilities that are measured at fair value on a recurring basis (in thousands):

	As of March 31, 2016								As of December 31, 2015
	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Penalty payment derivative (Note 10)	$	—	$	—	$	389	$	389	$	—	$	—	$	389	$	389

Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis

There were no assets or liabilities measured at fair value on a nonrecurring basis in the three months ended March 31, 2016. In the year ended December 31, 2015, the Company wrote off $0.2 million of property, plant and equipment and $0.2 million of held-for-sale assets. These assets were measured at fair value due to events or circumstances the Company identified as having significant impact on their fair value during the period. To arrive at the valuation of these assets, the Company considered the discounted cash flows to determine fair value using best estimates and unobservable inputs (Level 3).

Assets and Liabilities Not Measured at Fair Value

The carrying values of cash and cash equivalents, accounts receivable, accounts payable, notes payable and short-term borrowings approximate their fair values due to the short-term nature and liquidity of these financial instruments.

The fair values of the Company’s long-term debt have been calculated using an estimate of the interest rate the Company would have had to pay on the issuance of liabilities with a similar maturity and discounting the cash flows at that rate which it considers to be a level 2 fair value measurement. The fair values do not necessarily give an indication of the amount that the Company would currently have to pay to extinguish any of this debt.