Fair Value Measurements

3 Months Ended

Mar. 31, 2014

Fair Value Measurements

Fair Value Measurements

3.    Fair Value Measurements

The Company uses a three-tier fair value hierarchy to classify and disclose all assets and liabilities measured at fair value on a recurring basis, as well as assets and liabilities measured at fair value on a non-recurring basis, in periods subsequent to their initial measurement. The hierarchy requires the Company to use observable inputs when available, and to minimize the use of unobservable inputs when determining fair value.  The three tiers are defined as follows:

Level 1.   Observable inputs based on unadjusted quoted prices in active markets for identical assets or liabilities;

Level 2.  Inputs, other than quoted prices in active markets, that are observable either directly or indirectly; and

Level 3.  Unobservable inputs for which there is little or no market data, which require the Company to develop its own assumptions.

Assets and Liabilities Measured at Fair Value on a Recurring Basis

The Company evaluates its financial assets and liabilities subject to fair value measurements on a recurring basis to determine the appropriate level to classify them for each reporting period. This determination requires significant judgments. The following table summarizes the conclusions reached as of March 31, 2014 and December 31, 2013 (in thousands):

	Balance at
	March 31,  2014		Level 1		Level 2		Level 3
Assets:
Money market funds (1)	$	58,441	$	58,441	$	-	$	-
	$	58,441	$	58,441	$	-	$	-
	Balance at
	December 31, 2013		Level 1		Level 2		Level 3
Assets:
Money market funds (1)	$	68,437	$	68,437	$	-	$	-
	$	68,437	$	68,437	$	-	$	-

Money market funds are classified as cash equivalents in the Company’s unaudited consolidated balance sheets. As short-term, highly liquid investments readily convertible to known amounts of cash, with remaining maturities of three months or less at the time of purchase, the Company’s cash equivalent money market funds have carrying values that approximate fair value. Amounts do not include $39.6 million and $30.8 million of operating cash balances as of March 31, 2014 and December 31, 2013, respectively.