Fair Value Measurements

12 Months Ended

Dec. 31, 2013

Fair Value Disclosures [Abstract]

Fair Value Measurements

3. Fair Value Measurements

The Company measures certain financial assets and liabilities at fair value on a recurring basis, including cash equivalents, short-term and long-term investments and contingent consideration. The fair value of these financial assets and liabilities was determined based on three levels of input as follows:

• Level 1. Quoted prices in active markets for identical assets and liabilities;

• Level 2. Observable inputs other than quoted prices in active markets; and

• Level 3. Unobservable inputs.

The fair value hierarchy of the Company’s financial assets and liabilities carried at fair value and measured on a recurring basis is as follows:

			Fair Value Measurements at Reporting Date Using
	December 31, 2013		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets:
Money market funds(1)	$	1,607	$	1,607	$	—	$	—
Short-term investments(2)		14,401		—		14,401		—
Long-term investments(2)		3,959		—		3,959		—
Total assets	$	19,967	$	1,607	$	18,360	$	—
Liabilities:
Contingent consideration—current(3)	$	568	$	—	$	—	$	568
Contingent consideration—non-current(3)		928		—		—		928
Total liabilities	$	1,496	$	—	$	—	$	1,496
			Fair Value Measurements at Reporting Date Using
	December 31, 2012		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets:
Money market funds(1)	$	33,345	$	33,345	$	—	$	—
Short-term investments(2)		6,610		—		6,610		—
Long-term investments(2)		21,321		—		21,321		—
Total assets	$	61,276	$	33,345	$	27,931	$	—
Liabilities:
Contingent consideration—non-current (3)	$	1,180	$	—	$	—	$	1,180
Total liabilities	$	1,180	$	—	$	—	$	1,180

(1) Included in cash and cash equivalents on the accompanying consolidated balance sheets; valued at quoted market prices in active markets.

(2) Short and long-term investments consist of municipal bonds and government agency bonds; their fair value is calculated using an interest rate yield curve for similar instruments.

(3) Our valuation techniques and Level 3 inputs used to estimate the fair value of contingent consideration payable in connection with the LeMag acquisition are described in Note 4. During the year ended December 31, 2013 the contingent consideration increased by approximately $288 when it was remeasured to fair value.

The following table provides a roll-forward of the fair value of the contingent consideration categorized as Level 3 for the years ended December 31, 2011, 2012 and 2013:

	Fair Value
Balance as of December 31, 2010	$	1,007
Contingent liabilities accrued		398
Balance as of December 31, 2011	$	1,405
Payments on contingent liabilities		(1,405	)
Contingent liabilities added from LeMag acquisition		1,180
Balance as of December 31, 2012	$	1,180
Currency translation impact on contingent liabilities		28
Remeasurement of contingent liabilities		288
Balance as of December 31, 2013	$	1,496