FAIR VALUE MEASUREMENTS

Financial assets and liabilities measured at fair value on a recurring basis in the consolidated financial statements as of June 30, 2015 and December 31, 2014 are summarized by type of inputs applicable to the fair value measurements as follows:



June 30, 2015	Level 1		Level 2			Level 3		Total
Assets:
Marketable securities (a)	$	74,808	$	10,675		$	35,016	$	120,499
Long-term investments (a)	265,115		—			3,907		269,022
Investments in certain funds	—		—			468		468
Precious metal and commodity inventories recorded at fair value	13,195		—			—		13,195
Commodity contracts on precious metal and commodity inventories	—		846			—		846
Foreign currency forward exchange contracts	—		2,331			—		2,331
Total	$	353,118	$	13,852		$	39,391	$	406,361

Liabilities:
Financial instruments	$	21,385	$	—		$	—	$	21,385
Interest rate swap agreement	—		(103		)	—		(103		)
Total	$	21,385	$	(103	)	$	—	$	21,282



December 31, 2014	Level 1		Level 2		Level 3		Total
Assets:
Marketable securities (a)	$	93,768	$	10,793	$	33,896	$	138,457
Long-term investments (a)	286,740		—		13,985		300,725
Investments in certain funds	—		—		525		525
Precious metal and commodity inventories recorded at fair value	13,249		—		—		13,249
Commodity contracts on precious metal and commodity inventories	764		—		—		764
Total	$	394,521	$	10,793	$	48,406	$	453,720

Liabilities:
Financial instruments	$	21,311	$	—	$	—	$	21,311
Interest rate swap agreement	—		138		—		138
Total	$	21,311	$	138	$	—	$	21,449

(a) For additional detail of the marketable securities and long-term investments see Note 4 - "Investments."

Investments measured and reported at fair value are classified and disclosed in one of the following categories:

Level 1 - Quoted prices are available in active markets for identical investments as of the reporting date. The types of investments included in Level 1 are listed debt and equity securities.

Level 2 - Pricing inputs are other than quoted prices in active markets for identical assets, which are either directly or indirectly observable as of the reporting date, and can include quoted prices in active markets for similar assets or liabilities, quoted prices in a market that is not active for identical assets or liabilities, or other inputs that can be corroborated by observable market data. Investments which are generally included in this category include corporate bonds and loans, less liquid and restricted equity securities.

Level 3 - Pricing inputs are unobservable for the investment and include situations where there is little, if any, market activity for the investment. The inputs into the determination of fair value require significant management judgment or estimation and due to lack of observable inputs, the assumptions used may impact the fair value of these investments in future periods. Investments which are generally included in this category include private investments, non-exchange traded derivative contracts, and currency and interest rate swaps. For certain marketable securities, net asset value is used which is included in quarterly statements received in arrears from a venture capital fund to determine the fair value of such fund. The fair value of certain other marketable securities are determined by incorporating and reviewing prices provided by third-party pricing services based on the specific features of the underlying securities.

The fair value of the Company's financial instruments, such as cash and cash equivalents, trade and other receivables and trade payables, approximate carrying value due to the short-term maturities of these assets and liabilities. Carrying cost approximates fair value for long-term debt which has variable interest rates.

The precious metal and commodity inventories associated with HNH's fair value hedges (see Note 6 - "Financial Instruments") are reported at fair value. Fair value of these inventories is based on quoted market prices on commodity exchanges and are considered Level 1 measurements. The derivative instruments that HNH purchases in connection with its precious metal and commodity inventories, specifically commodity futures and forwards contracts, are also valued at fair value. The futures contracts are Level 1 measurements since they are traded on a commodity exchange. The forward contracts are entered into with a counterparty and are considered Level 2 measurements.

Interest rate swap agreements are considered Level 2 measurements as the inputs are observable at commonly quoted intervals.

Following is a summary of changes in financial assets measured using Level 3 inputs:



	Investments in Associated Companies			Other Investments - Related Party			ModusLink Warrants			Marketable Securities and Other			Total
Assets
Balance at March 31, 2014	$	2,131		$	10,226		$	3,385		$	30,391		$	46,133
Purchases	—			—			—			5,239			5,239
Sales	—			(1,496		)	—			(2,758		)	(4,254		)
Realized loss on sale										(129		)	(129		)
Unrealized gains	—			1,478			—			—			1,478
Unrealized losses	(51		)	(3		)	(951		)	(397		)	(1,402		)
Balance at June 30, 2014	$	2,080		$	10,205		$	2,434		$	32,346		$	47,065

Balance at March 31, 2015	$	2,298		$	7,296		$	2,163		$	31,373		$	43,130
Purchases	—			—			—			5,108			5,108
Sales	—			(7,258		)	—			(359		)	(7,617		)
Realized gain on sale	—			—			—			—			—
Unrealized gains	—			—			—			—			—
Unrealized losses	(27		)	(38		)	(527		)	(638		)	(1,230		)
Balance at June 30, 2015	$	2,271		$	—		$	1,636		$	35,484		$	39,391



	Long - Term Investments
	Investments in Associated Companies (a)			Other Investments - Related Party (b)			ModusLink Warrants (c)			Marketable Securities and Other (d)			Total
Assets
Balance at December 31, 2013	$	2,243		$	10,228		$	5,832		$	24,209		$	42,512
Purchases	—			—			—			10,538			10,538
Sales	—			(1,496		)	—			(4,732		)	(6,228		)
Realized loss on sale	—			—			—			(129		)	(129		)
Unrealized gains	—			1,476			—			2,460			3,936
Unrealized losses	(163		)	(3		)	(3,398		)	—			(3,564		)
Balance at June 30, 2014	$	2,080		$	10,205		$	2,434		$	32,346		$	47,065

Balance at December 31, 2014	$	2,163		$	9,623		$	2,199		$	34,421		$	48,406
Purchases	—			—			—			5,108			5,108
Sales	—			(9,985		)	—			(522		)	(10,507		)
Realized gain on sale	—			—			—			—			—
Unrealized gains	135			484			—			—			619
Unrealized losses	(27		)	(122		)	(563		)	(3,523		)	(4,235		)
Balance at June 30, 2015	$	2,271		$	—		$	1,636		$	35,484		$	39,391

(a) Unrealized losses are recorded in (Loss) Income of associated companies, net of taxes in the Company's Consolidated Statements of Operations.

(b) Unrealized gains and losses are recorded in (Loss) Income from other investments-related party in the Company's Consolidated Statements of Operations.

(c) Unrealized gains and losses are recorded in (Loss) Income from investments held at fair value in the Company's Consolidated Statements of Operations.

(d) Realized gains on sale are recorded in Other income, net in the Company's Consolidated Statements of Operations.

Long-Term Investments - Valuation Techniques

The Company primarily uses two valuation methods to estimate the fair value of its equity securities measured using Level 3 inputs. The Company estimates the value of one of its investments in an associated company primarily using a discounted cash flow method adjusted for additional information related to debt covenants, solvency issues, etc. The Company estimates the value of Other investments - related party, which represents its interest in the SPII Liquidating Trust, based on the net asset value of each series of the Trust. The ModusLink Warrants are valued using the Black-Scholes option pricing model (for additional information see Note 4 - "Investments").

Marketable Securities and Other - Valuation Techniques

The Company uses the net asset value included in quarterly statements it receives in arrears from a venture capital fund to determine the fair value of such fund. The Company determines the fair value of certain corporate securities and corporate obligations by incorporating and reviewing prices provided by third-party pricing services based on the specific features of the underlying securities.

Assets Measured at Fair Value on a Nonrecurring Basis

The Company’s non-financial assets measured at fair value on a non-recurring basis in 2015 and 2014 include the assets acquired and liabilities assumed in the acquisitions described in Note 2 – “Acquisitions.” Significant judgments and estimates are made to determine the acquisition date fair values which may include the use of appraisals, discounted cash flow techniques or other information the Company considers relevant to the fair value measurement.

As of June 30, 2015 and December 31, 2014, WebBank has impaired loans of $461, of which $0 is guaranteed by the USDA or SBA and $458, of which $4 is guaranteed by the USDA or SBA, respectively. These loans are measured at fair value on a nonrecurring basis using Level 3 inputs. See the "Impaired Loans" section of Note 7 - "Trade, Other and Loans Receivable" for additional discussion of loan impairment measurements.