Fair Value Disclosures

6 Months Ended

Jun. 30, 2014

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 June 30, 2014											As of December 31, 2013
	Level 1			Level 2			Level 3			Total		Level 1		Level 2		Level 3		Total
Cash, cash equivalents, restricted cash and investments
Money market funds	$	17,387	$		—	$		—	$		17,387	$	4,588	$	—	$	—	$	4,588
Time deposits		—			—			—			—		—		6,540		—		6,540
Corporate bonds		—			2,010			—			2,010		—		6,706		—		6,706
U.S. federal agencies		—			—			—			—		—		—		—		—
Foreign bonds and notes		—			—			—			—		—		4,832		—		4,832
Variable rate demand notes		—			1,700			—			1,700		—		1,801		—		1,801
Total	$	17,387	$		3,710	$		—	$		21,097	$	4,588	$	19,879	$	—	$	24,467
Mutual funds held in Rabbi Trust	$	483	$		—	$		—	$		483	$	442	$	—	$	—	$	442

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 June 30, 2014.  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 June 30, 2014 and December 31, 2013.

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

	As of June 30, 2014								As of December 31, 2013
	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Contingent consideration (Note 10)	$	—	$	—	$	—	$	—	$	—	$	—	$	1,985	$	1,985
Penalty payment derivative (Note 10)	$	—	$	—	$	425	$	425	$	—	$	—	$	239	$	239

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 as of June 30, 2014 or December 31, 2013.

Assets and Liabilities Not Measured at Fair Value

The carrying values of cash and cash equivalents, accounts receivable, accounts payable and notes payable 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.

The fair value of the Company’s variable rate bank borrowings and acquisition-related debt was not materially different than its carrying value as of June 30, 2014 and December 31, 2013 as the interest rates approximated rates currently available to the Company.