FAIR VALUE MEASUREMENTS

9 Months Ended

Sep. 30, 2013

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS

NOTE 10—FAIR VALUE MEASUREMENTS

The Company measures certain financial assets and liabilities at fair value on a recurring basis in the financial statements. The hierarchy ranks the quality and reliability of inputs, or assumptions, used in the determination of fair value and requires financial assets and liabilities carried at fair value to be classified and disclosed in one of the following three categories:

· Level 1 — quoted prices in active markets for identical assets and liabilities;

· Level 2 — inputs other than Level 1 quoted prices that are directly or indirectly observable; and

· Level 3 — unobservable inputs that are not corroborated by market data.

The following table provides the fair value measurements of applicable financial assets and liabilities as of December 31, 2012:

	Financial assets and liabilities at fair value as of December 31, 2012
	Level 1		Level 2		Level 3
Money market funds (1)	$	24,448	$	—	$	—
Deferred compensation (2)	$	—	$	1,165	$	—
Total	$	24,448	$	1,165	$	—

The following table provides the fair value measurements of applicable financial assets and liabilities as of September 30, 2013:

	Financial assets and liabilities at fair value as of September 30, 2013
	Level 1		Level 2		Level 3
Money market funds (1)	$	29,445	$	—	$	—
Deferred compensation (2)	$	—	$	1,031	$	—
Total	$	29,445	$	1,031	$	—

(1) Included in cash and cash equivalents on the Company’s Condensed Consolidated Balance Sheets. The carrying amount of money market funds is a reasonable estimate of fair value.

(2) Included in other long–term liabilities on the Company’s Condensed Consolidated Balance Sheets.  Refer to Note 14 for further information.